RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/VUT/7/Add.2
13 May 1998
(98-1904)
Working Party on the
Accession of VanuatuOriginal:  English
ACCESSION OF VANUATU
Additional Questions and Replies
Addendum
The Department of Trade, Industry and Inve stment of the Government of Vanuatu has
submitted the following additional reply to a question posed by members of the Working Party on theAccession of Vanuatu to the WTO.
_______________
Financial services
Question 72.
We would appreciate advice on the new capital adequacy policies when they are available.  We
would like to strongly urge Vanuatu to base the capital adequacy ratios on Basel risk-weighted
asset methodology and to ensure that these ratios  are implemented on a national treatment basis
(paragraph 68 of Factual Summary)?
Answer
The new capital adequacy policies are provided for in the Financial Institution Bill which is
being finalized to go before Parliament this year.  After Parliament approval, the law becomes a
public document and details of the policies will be made known anyway.
On the question raised as to the capital adequacy ratios, we have mentioned in our previous
answers on the same that the new rations will definitely be based on Basel risk-weighted asset
methodology.  As far as the implementation of the rations on a national treatment basis are concerned,
the proposed Bill does NOT make such distinctions between national and foreign-owned banks.
__________