Microprudential Supervision aims to ensure the solvency and financial soundness of each financial institution individually, integrated in the respective consolidation perimeter, as well as each financial market, thereby ensuring the stability and efficient functioning of the financial system.

In fulfilling its mission, Banco de Cabo Verde has the following main duties:

- Actively promote the maintenance of a sound and prudent management of the supervised institutions and an appropriate balance between their risk profile and their levels of capital and liquidity; and

- Ensure microprudential regulation of activities and institutions subject to supervision.

Even though supervision is extremely important for the financial sector, financial institutions must develop mechanisms, instruments and means that ensure competent management by the administrative bodies, internal control management by the supervisory bodies and control functions. It is also important to highlight the role played by the institutions' external auditors.

Institutions must also develop solid devices that ensure sound and prudent risk management and long-term objectives. They must continuously and substantially ensure the fulfillment of all legal prudential requirements, safeguarding their own solvency and financial soundness and the security of the funds entrusted to them.

In carrying out its microprudential supervision duties, Banco de Cabo Verde verifies the fulfillment of the obligations to which the supervised institutions are subject, always intervening to ensure the correction of any mistakes, without exempting the institutions from their responsibilities, in particular with regard to having a sound and efficient governance model and internal control system.