By Bernadette H. Carreon
Horizon news staff

The Financial Institution Commission urged the Senate to expedite FIC and the banking association’s proposed amendments to the FIC Act.
FIC in their letter to Sen. Alan Seid , Chairman of the Senate Committee on Ways and Means and Financial Matters, said that there remains a concern on the current status of bank supervision and regulation of Palau especially the inability of the law to protect the depositors of the financial institution.
"It is now 2007, four years later and we continue to seek legislative action to improve our banking law and we have continued to seek the OEK’s support for regulations that would improve our ability to properly regulate banks. We have and will continue to lobby the 7th OEK to push forth the FIC and Banker’s Association recommended amendments to the FIA as well as passage of our regulations that allow the FIC to perform its statutory functions effectively,"
The FIC said that Palau’s banking legislation continue to put a setback on the "safety and soundeness of banks in the Republic of Palau and we ask for your urgent consideration."
The FIC said changes in the law would also help clear outstanding issues that affect the bank receiver such as the extension of time limits for receiverships of banks to allow for "greater collections as well as criminal provisions that would enable criminal prosecutions of wrongful acts by bank insiders."