Prudential supervision of credit institutions entails maintaining the stability and integrity of the financial system and safeguarding the interests of the deposit holders. The State Ordinance on the Supervision of the Credit System provides the Central Bank of Aruba (“CBA”) with the legal basis for supervising credit institutions, both onshore and offshore.
Pursuant to abovementioned State Ordinance, a banking license from the CBA is required to operate as a credit institution in Aruba. In order to be considered for such a license, the applicant must comply with certain requirements set by the CBA, which are laid down in aforementioned State Ordinance as well as in policies of the CBA (e.g. the Policy Rule Banking License Requirements for Credit Institutions).
Furthermore, once the license has been granted, the credit institutions need to comply continuously with the CBA’s directives and policy papers.