Challenge Faced by Bank Regulator and Supervisor

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Challenge Faced by Regulator and Supervisor Authority
INTRODUCTION
Nowadays, most people are familiar with new technology development of electronic banking systems. Its not only provide the basic services like fund transfer and bill payments, but also doing the advance including provide the loan and card application. Electronic banking can define as the use of electronic delivery channels for banking products and services. Electronic banking services generally offered in two ways either traditional bank that is combine traditional and electronic delivery channels or virtual bank that operate entirely through electronic banking channel without having a branch network. It makes the business operational more efficient, faster and easier
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Other risk might be arise is credit risk is the risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter, liquidity risk is the risk arising from a bank’s inability to meet its obligations when they come due, without incurring unacceptable losses, although the bank may ultimately be able to meet its obligations. Besides, interest rate risk refers to the exposure of a bank’s financial condition to adverse movements in interest rates and market risk is the risk of losses in on- and off-balance sheet positions arising from movements in market prices, including foreign exchange rates.

III. CROSS-BORDER ON ELECTRONIC BANKING SUPERVISORY ISSUES
There a several type of relationship between bank and customer in banking supervision either virtual or traditional bank that is including the bank licensed in home country that consist onshore and offshore relationship and same as bank licensed abroad, there also onshore and offshore relationships. To supervise the cross-border electronic banking activities, Basel Committee on Banking Supervisors (BCBS) have recommend the home country supervisor to provide the host country supervisor with the information on how they see the activities, so easy to supervise the banking activities from outside that operate in their country. In
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