CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT consolidating its strategic practice of eradicating foreign debt by significantly reducing its foreign public debt. 411. Core principles for payment and settlement systems. These core principles were drawn up by the Committee on Payments and Settlement Systems (CPSS) of the central banks of G10 countries and the Bank for International Settlements based in Basel, Switzerland. There are ten such core principles and four central bank officials are involved in implementing these. The APRM indicated that inter-bank payments usually took a long time and the modernisation of the payment system had not yet been completed. 412. Core principles for securities and insurance supervision and regulations. Set out by the International Association of Insurance Supervisors (IAIS), the objectives of these principles are to protect investors, guarantee a fair, equal and transparent market, and reduce systemic risks. 413. To this end, Act 06-04, which modifies Ordinance 95-07 of 25 January 1995, reinforces the guiding principles by setting up a national insurance supervisory committee. This independent body has the necessary means and authority to carry out its mandate pertaining to the management of public funds. The National Insurance Council, which is made up of all stakeholders, plays an advisory role to this body. (This subject is dealt with in more detail in Chapter Five on corporate governance in this report.) 414. Accounting and auditing standards. The International Accounting Standards Board (IASB) is the body responsible for developing international accounting and auditing standards. The IASB carried out modifications on standards with an emphasis on fair values in accounting. 415. The CRM noted that internal auditing is not taken very seriously in public enterprises. Standing at only 3 per cent, there is an insignificant number of internal audit committees. This is because of the confusion that exists between the function of internal auditing and internal control, as well as inspection visits. (This is also dealt with in more depth in Chapter Five on corporate governance in this report.) 416. Core principles for effective banking supervision. These were drawn up by the Basel Committee for Banking Supervision and define 25 basic principles covering the following areas: preconditions for effective banking supervision; licensing and structure; prudential regulations and requirements; methods for ongoing banking supervision; accounting and disclosure; corrective and remedial powers of supervision, and consolidated and cross-border banking supervision. In Algeria, three institutions are responsible for this important control and supervision exercise: the Central Bank of Algeria, the Banking Commission (presided over by the Governor of the Central Bank of Algeria), and the Money and Credit Council. 135