By means of Decree-Law No. 173, of May 28, 1997, the Council of State established the adequate legal framework to enable the efficient performance of financial institutions, just as the present and prospective development of the economy demands.

• Banks are not only under regulation, as it was the case under the legislation in force until May, 1997, but also, non-banking financial institutions are subject of regulation.
• Requisites for setting up financial institutions are established.
• The General Register of Banks and Non-banking Financial Institutions is created.
• The particularities of financial intermediaries in terms of capital, operations and legal reserves are determined.
• The main powers of Banco Central de Cuba in regard to bank supervision are determined.
• Voluntary wind-up, intervention and compulsory wind-up is regulated.
• Bank secrecy is ruled.

Under the aforementioned Decree-Law No.173, the Banking and Financial System has undergone a process of growth and consolidation, followed by an intense organizational work in preparing and retraining the personnel and in introducing modern techniques of data processing and communications.

An important element within this process is the set of rules and regulations for an effective execution of the supervision, through on and off site inspections to all institutions making up the system, attending to their health and transparency.