Let us remember that it was on April 11th that we questioned the Macau Monetary Authority (AMCM) regarding the importance of efficient banking supervision through internal and external control systems and reliable audits. As the highest supervisory authority for the monetary and financial systems in the Macao SAR, the AMCM has the duty to protect depositors and contribute to the stability of the financial system, respecting the principles of the Basel Agreement and ensuring the economic well-being of the Macao SAR. society.
We understand that independence is one of the fundamental pillars that allows AMCM to exercise its role as regulator and supervisor effectively, free from external interference and other considerations that could put the banking system at risk, with significant costs for taxpayers and the economic-financial stability.
At the time, we highlighted the Basel Fundamental Principles, whose standards for good prudential regulation and banking supervision, namely the importance of supervision through legal standards, approaches and techniques that aim to comprehensively ensure financial stability.
On May 29, the president of the Monetary Authority of Macau, responding to our question, categorically stated that “the Monetary Authority of Macau has been respecting the principles of risk-based supervision, thus, through continuous supervision measures, such as such as carrying out “onside” and “offside” inspections, the development of thematic surveys and pressure tests, in addition to the development of close communication with the management of banks and associations representing the sector, as well as the development of cooperation cross-border supervision with external financial supervision institutions, in order to ensure continuous supervision over the operations and management of banks, ensuring that the banking system has sufficient capacity to face risks”.
This senior public administration official added that “over the years, through compliance with regulatory requirements, the Macau banking sector has strictly respected the principles of prudent operation and management, so that the performance of general activities remained stable, and on the other hand, it also appears that the quality of assets is good, with adequate capital and sufficient liquidity”.
Despite the aforementioned guarantees of stable performance in the banking sector, recently the media reported the occurrence of several serious financial frauds occurring within a local banking institution, involving its senior management and assuming that the losses amounted to around one billion patacas. .
Surprisingly, the AMCM has not yet commented on this important issue, giving rise to unnecessary speculation with risks to the reputation of banking institutions in terms of liquidity and solvency, which is why we are of the opinion that the AMCM should clarify as quickly as possible and in a transparent manner everything that happened and what is being done to protect depositors and guarantee the economic and financial stability of the Macao SAR.
Finally, we remind you that AMCM is responsible for monitoring and ensuring that local banking institutions are managed in a healthy and prudent manner, in a long-term perspective, with a healthy and responsible attitude towards risks. Compliance with all legally stipulated prudential requirements must be continuously guaranteed, safeguarding their own solvency and financial solidity, as well as the security of the funds entrusted to them by depositors.
Association of Public Service Workers of Macau (ATFPM)*
