1. BANKING AND INSURANCE REGULATION

2. RESPONSIBILITIES OF Self Regulatory Organizations(SROs)
Regulation of Market transactions
Regulation of Market participants
Dispute Resolution and Enforcement Actions
Pre-Commitment of Resources

3. BANK REGULATIONS
Bank Regulations are a form of Government regulations which subject banks to certain requirements, restrictions and guidelines.
This creates transparency between banking institutions and the individuals and corporations with whom they conduct business among other things.

4. OBJECTIVES OF BANKING REGULATIONS
Prudential
Systematic risk reduction
Avoid misuse of banks
To protect banking confidentiality
Credit allocation
Treating customers fairly and CSR

5. GENERAL PRINCIPLES OF BANKING REGULATIONS
Minimum Requirement
Supervisory Review
Market Discipline

6. INSTRUMENTS AND REQUIREMENTS OF BANK REGULATION
Capital Requirement
Reserve Requirement
Corporate Governance
Financial reporting and disclosure requirements
Credit Rating requirements
Large exposure restrictions

7. REGULATORY FUCTIONS OF RBI
Licensing
Corporate Governance
Statutory pre-emptions
Interest Rate
Prudential Norms
Risk Management
Disclosure norms
Know your Customer Norms
Protection of Small depositors
Para-banking activities

8. SUPERVISORY FUNCTIONS OF RBI
On-site Inspection
Off-site Surveillance
Periodic meetings
Monitoring of frauds

9. INSURANCE REGULATIONS
No regulation in investment
Discrimination
No power with the Government actuary
Mushroom growth of companies

10. FUNCTIONS OF IRDA Registering and regulating insurance companies
Protecting policy holders interest
Licensing and establishing norms for insurance intermediaries
Promoting professional organizations in insurance
Regulating and overseeing premium rates and terms of non-life insurance covers
Specifying financial reporting norms of insurance companies
Regulating investment of policyholders funds by insurance companies
Ensuring the maintenance of solvency margin by insurance companies
Ensuring insurance coverage in Rural areas

11. REGULATIONS AND CONTROL OF IRDA
Registration and Licensing
Product and its pricing
Investment of Funds
Solvency margin
Appointment of actuary
Appointment of Managing director
Powers of Investigating and Inspection
Accounts and Balance sheet
Surveyors and Loss Assessors
Intermediaries
Reinsurance

12. OMBUDSMAN IN INSURANCE
To resolve all complaints relating to the settlement of claims on the part of insurance company in a cost effective, efficient and impartial manner
A person appointed to investigate grievances against mal administration is known as OMBUDSMAN
Within three months
Complaint when
The insurer has rejected the complaint
No reply was received within one month of complaint
The reply was not satisfactory

13. TYPES OF COMPLAINTS received by OMBUDSMAN
Any partial or total repudiation of claims by Insurance companies
Dispute with regard to premium paid or payable in terms of the policy
Dispute on legal construction of the policy wordings in case such dispute relate to claim
Delay in in settlement of claims
Non-issuance of any insurance document to customers after receipt of premium.

14. CORPORATE GOVERNANCE
Corporate Governance is a system by which companies are directed and controlled
Features
Social Consciousness
Value of ethics
Universal Application
Systematic approach
Direction and Supervision

15. Need and Importance of Corporate Governance
Changing ownership structure
Growing popularity of the concept of Social Responsibility
Growth in the number of scams
Indifference on the part of shareholders
Multiplicity of Takeovers and Mergers
Trend towards Globalization

16. Need for Corporate Governance in Insurance
Confidence
Change management
Investment
Viability

17. RISK AND IMPLICATIONS OF RISK MANAGEMENT
CHP 9
RISK AND IMPLICATIONS OF RISK MANAGEMENT

18. DEFINATION
Risk can be defines as the degree of variation in the possible outcome from an uncertain event, or the variation in the possible outcomes

19. CLASSIFICATION OF RISK
Financial and Non Financial Risk
Static and Dynamic risk
Fundamental and particular risk
Pure and Speculative Risk

20. CLASSIFICATION OF RISK
Personal Risk
Arises out of some uncertainties in human element like premature death, dependent old age, sickness, disability and unemployment
Property Risk
Occurrences of uncertain events which cause loss to property
Liability Risk
Risks which creates financial liability on any person on the occurrence of an uncertain event are called liability risk. Losses which result from an intentional injury to other person or damages to their property through negligence or carelessness
Risk arising from failures of others
Loss resulting from the failure of another person to meet an obligation

21. RISK MANGEMENT
Risk management may be defined as, “ the identification analysis and economic control of those risks which can threaten the assets or earning capacity of an enterprise”.

22. Importance of risk management
Essential for effective managing of people and process
Required for effective handling of spreading risk, monitoring and insuring
To give advice and make suggestions for handling the risk
To introduce various plan and techniques to minimize the risk
To decide which risks are worth pursuing
To fix sum insured under the policy
To select appropriate methods or techniques to manage the risks
To create awareness about risks among the people

23. IMPLICATIONS OF RISK MANAGEMENT
Prevention of Risks and Avoiding Risks
Reduction of Risks
Shifting of Risks of Transferring of Risks
Acceptance of Risk
Spreading of Risks

24. RISKS IN BANKS Credit Risks Default Exposure Risk Collateral Risk
Third Party Guarantee Risk
Legal Risk

25. DERIVATIVES
Forwards
Futures
Options
Swaps

26. INNOVATION IN CREDIT APPRAISAL SYSTEM
Creditworthiness of the Borrower
Character
Capacity
Capital
Collection of Credit Information
Credit Information Bureau
Borrower
Information from Brokers, Traders and other businessmen
Exchange of Credit information among Banks
Balance Sheet and Profit and Loss account