The Bank conducts target on-site examinations to ensure the compliance of the Bank's regulations. Supplement to the target on-site examinations, the Bank implemented off-site monitoring to keep informed of changes in financial institutions and to require appropriate corrective actions in a timely manner.

I. On-site target examination

The Bank may send its teams of examination officers to the financial institution under examination to ensure they comply with the Bank's regulations. Enforcement and remedy actions will be followed based on the findings. Once the financial institutions receive the examination reports, they are required to report the improvements and corrections taken within 1 month.

II. Off-site monitoring

The Bank developed the Financial Institutions CARSEL Analyzing System in 1990. The CARSEL system uses financial analysis and management accounting as tools to screen periodical report data. The Bank may evaluate a financial institution's performance by analyzing its Capital adequacy, Asset quality, Regulatory compliance, Strategies & stability, Earnings, and Liquidity. The CARSEL evaluation is an important reference for the Bank's supervision policies.