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- October 19 - October 30, 2015
Joint World Bank/International Monetary Fund/Federal Reserve System--Seminar for Senior Bank Supervisors from Emerging EconomiesFederal Reserve System Courses
Type of Participant Targeted
This seminar is designed for senior bank supervisors from emerging economies. These supervisors generally are directors of bank supervision, deputy heads of supervision, or high-level staff involved in, or capable of influencing, policy formulation as it concerns the supervision and regulation of banks in their respective countries.
In response to the financial crisis, central banks and bank regulators around the world have developed new measures to ensure financial stability by allowing them to identify and appropriately address systemic risks to their financial systems. Regulatory and supervisory processes have been restructured in many countries to deliver a more assertive, risk-based approach to bank supervision. Additionally there is a greater focus on macro-prudential analysis to identify the risks and stresses to the economy and the financial system, including the harm that large, interconnected and highly leveraged institutions could inflict on the financial system and economy if they fail. The supervisory focus is to try to ensure that institutions are better capitalized, more liquid, and better managed than before. To accomplish this goal, a forward looking approach is taken to assess whether, on the balance of risks, there are vulnerabilities in the institution's business models, capital and liquidity positions, governance, risk management, and controls that cast into doubt the institution's financial soundness.
The objectives of the seminar are
- To familiarize participants with the supervisory problems faced by emerging economies and the constraints such problems pose to economic growth and development
- To discuss alternative solutions for dealing with banking insolvency and financial system distress through deposit insurance schemes and bank restructuring
- To upgrade the technical skills of bank supervisors
At the conclusion of this seminar, participants will, at a minimum, be able to
- Improve supervision and examination capabilities
- Understand the implications of a financial crisis and the alternatives for restructuring banks
- Gain a better understanding of regulations affecting banking institutions and achieve a greater awareness of major regulatory and supervisory topics being discussed at the international level
Strong and effective bank supervision and prudential regulation are cornerstones of a healthy financial system. Agencies, such as the World Bank, the International Monetary Fund, and the Federal Reserve System, have strengthened bank supervision and prudential regulations by enacting changes based on experiences realized during different economic conditions. Traditionally, in most countries, highly specialized bank supervision and examination skills have been learned on the job, with only the largest, most developed countries having the resources to establish training departments and courses. Training, to the extent that it has been conducted in emerging economies, has been narrow in focus.
This seminar will attempt to overcome some of these shortcomings by bringing together a group of participants from a wide variety of countries. The program will focus on discussions of the principal policy issues facing bank supervisors in developing countries today. It will establish the linkages between financial system health and macroeconomic performance and the World Bank's general framework for financial sector reform. From these broader issues, the seminar will move to discussions concerning the causes of financial system distress and possible solutions, including problem bank resolution and bank restructuring.
World Bank and IMF staff, and a distinguished group of experts from the U.S. bank supervisory agencies, major international accounting firms, and elsewhere, will lead the discussions. Class participation and interaction will be encouraged.
The seminar will also focus on skills development. Speakers from the Federal Reserve System, the World Bank, the IMF, the Bank for International Settlements, the Toronto Centre, and the Financial Stability Institute, among others, will discuss many aspects of supervisory and regulatory best practices, including implementation of road maps and challenges. Other topics may include loan portfolio management, credit risk, classification of assets, bank analysis, foreign exchange risk, market risk, interest-rate risk, the CAMELS rating system, risk-focused examination techniques, and internal and external auditing. The topics will be presented using a combination of lectures, class discussions, case studies, group exercises, and class presentations. Once again, class participation and interaction will be encouraged as an effective means of sharing ideas and learning. This seminar will continue the process of providing technical assistance to emerging economies.