The RMA has the mandate to ensure the soundness and stability of the country's financial system. To that end, the RMA exercises both the On-site and Off-site prudential supervision over the financial institutions in order to safeguard their financial soundness and to ensure they observe sound practices and compliance with the regulations issued by the RMA. It also includes the licensing of financial institutions. Instituting sound risk management culture among regulated entities is a key priority in improving financial soundness of individual financial institutions and the stability of the financial sector.