FSI 2005 Programme - bis.org

2005 ProgrammeFSI Financial

StabilityInstitute

November 2004

Dear Colleague,

The year 2004 has been eventful and is now drawing to a close. Our events attracted a large number of participants. Many seminars and meetings addressed various aspects related to Basel II, with a special focus upon its implementation. A significant proportion of our events were also tailored to insurance sector supervisors and covered a wide range of topics important to this segment of the supervisory community. In addition, 2004 saw the successful launch of FSI Connect – our new web-based information and learning resource tool for banking supervisors globally.

The next year will see us continue our efforts to disseminate standards and sound practices to help build supervisory capacity and strengthen financial stability. As in previous years, this brochure includes our programme of events for the coming year and focuses on topics of primary importance to banking and insurance supervisors around the world. We will also be adding a significant number of tutorials to FSI Connect on an ongoing basis.

We look forward to having you and your colleagues participate in FSI events and make use of FSI Connect in 2005. Should you need any further information or have any questions, please feel free to contact us.

Centralbahnplatz 2 · CH-4002 Basel · Switzerland · Tel: +41 61 280 8080 · Fax: +41 61 280 9100 · [email protected]

Yours sincerely,

Josef Tošovský Chairman

5

FSI Financial Stability Institute

Contents

The Financial Stability Institute. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Overview of 2005 - Programme of Events for Banking

and Insurance Sector Supervisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Overview of FSI Connect Online Tutorials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Conferences, High-Level Meetings and Discussion Forums . . . . . . . . . . . . . . . . . . . 12

Seminars in Switzerland for Banking Supervisors . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Regional Seminars for Banking Supervisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Seminars for Insurance Supervisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Cross-Sectoral Seminars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Other Seminars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

FSI Connect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Meet the People at the FSI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

6


Identifying Issues

Helping to UnderstandThe Core Principles

Basel II: Revised International Capital

Framework Corporate Governance

Risk ManagementAccounting and Auditing

Many Other Supervisory Topics

Facilitating Discussion and Sharing ExperiencesConferencesDiscussion ForumsSeminarsFSI Connect

Assisting Supervisors Globally

7


The Bank for International Settlements and the Basel Committee on Banking Supervision jointly cre-ated the Financial Stability Institute (FSI) in 1999 to assist supervisors around the world in improving and strengthening their financial systems.

Objectives of the FSI

• To promote sound supervisory standards and practices globally, and to support full implementa-tion of these standards in all countries.

• To provide supervisors with the latest information on market products, practices and techniques to help them adapt to rapid innovations in the finan-cial sector.

• To help supervisors develop solutions to their multiple challenges by sharing experiences in seminars, discussion forums and conferences.

• To assist supervisors in employing the practices and tools that will allow them to meet everyday demands and tackle more ambitious goals.

In 2004 we held 57 events with more than 1600 participants. These events benefitted from the expertise of more than 280 speakers from both the public and private sector. In 2005 we will continue to offer a wide range of products to assist the supervisory community.

The FSI’s Main Activities and Products

• Conferences and high level meetings• Discussion forums• Seminars in Switzerland and globally• Joint banking/insurance seminars• FSI Connect (a web-based information and learn-

ing resource)• Quarterly newsletter (FSI World)• FSI Occasional Papers

Additional events may be added during the year; for the most up-to-date information consult the FSI website (go to www.bis.org, click on the Financial Stability Institute button).

General Information on FSI EventsParticipation: Participation in FSI events is usually open to senior supervisors and technical experts. Any exceptions are noted under the event descrip-tions. Regional seminars are limited to senior super-visors from the member countries of the designated regional supervisors group.

Costs: The FSI does not charge any fees for partici-pation in our events. Participants are responsible for their own travel and lodging expenses, and insur-ance.

Registration: Approximately eight weeks prior to an event being held in Switzerland, the head of super-vision at each central bank or supervisory agency will receive a let-ter of invitation to nominate a member of staff to participate in the event. This will include a draft agenda and a registration form for the event. The registration form con-tains details regarding hotel accommodation and instructions for returning the form to the FSI. Applications for registration are accepted only during the registration period (i.e. no “pre-regis-trations”) and are dealt with on a “first come, first served” basis. Registration for regional seminars is handled directly by either the secretariat of the regional supervisors group or the hosting central bank/supervisory agency.

Locations: Events in Switzerland are typically held in either Basel, Lucerne or Beatenberg (near Interlaken). Locations are noted in the descrip-tions. Regional seminars are held at locations around the world, determined in conjunction with the designated regional supervisors group.

The Financial Stability Institute

http://www.bis.org

8


Overview of 2005 - Programme of Events for Banking and Insurance Sector Supervisors

DATE EVENT (venue) Pg

Conferences, High-Level Meetings and Discussion Forums20 Apr Heads of Banking Supervision Meeting (Basel) 12tbd High-Level Meetings/Discussion Forums on Practical Applications of

Basel II 12

10–11 Nov Conference on Credit Risk Transfer (Basel) 12

Seminars in Switzerland for Banking Supervisors18–20 Jan Market and Liquidity Risk (Basel) 1308–10 Feb The Internal Ratings-Based Approaches and Credit Risk Modelling

(Basel)13

15–18 Mar International Accounting and Auditing for Banks (Basel) 1431 May–02 Jun Problem Bank Resolution jointly with the Toronto Centre (Basel) 1424 Jun–01 Jul 21st International Banking Supervision Seminar (Beatenberg) 1529 Aug–02 Sep Advanced Risk Management (Beatenberg) 1512–16 Sep Market Risk Analysis jointly with the Federal Reserve (Lucerne) 1623–30 Sep 22nd International Banking Supervision Seminar (Beatenberg) 1604–07 Oct Advanced International Accounting and Auditing for Banks (Basel) 1718–20 Oct Practical Techniques for the Management and Measurement of

Operational Risk (Basel)17

22–24 Nov Stress Testing (Basel) 1806–08 Dec On-site and Off-site Supervision, with Special Focus on Pillar 2 (Basel) 18

Regional Seminars for Banking Supervisors28 Feb–03 Mar SEACEN: Basel II and the Internal Ratings-Based Systems (Kuala

Lumpur)19

01–03 Mar SSBS: Credit Risk in Basel II (Harare) 1909–11 Mar Group of French-Speaking Supervisors: Implementation of Basel II

(Rabat)20

15–17 Mar ASBA: Building an Internal Ratings-Based System (Sao Paulo) 2021–23 Mar AMF: Basel II: Pillars 1 and 2 (Abu Dhabi) 2105–07 Apr CBSG: International Accounting and Auditing for Banks (Kingston) 2110–12 Apr GCC: Credit Risk in Basel II (Riyadh) 2226–28 Apr BSWCA: e-Banking and Corporate Governance (Banjul) 2203–04 May What Banking Supervisors Need to Know About the Securities Industry

and Securities Supervision (Hong Kong SAR)23

10–12 May BSCEE: Credit Risk in Basel II (Budapest) 2324–26 May SEANZA: Financial Mathematics in Risk Modelling and Basel II (Manila) 2425–27 May EMEAP: tbd (Sydney) 24

tbd = to be determined

9


13–17 Jun JVI: Core Supervisory Topics (Vienna) 2513–15 Sep CEMLA: Basel II: Pillar 2 (Buenos Aires or Montevideo) 2520–22 Sep ASBA: Credit Risk (Mexico City) 2611–13 Oct SSBS: Problem Bank Resolution (Maseru) 2608–10 Nov BSWCA: Credit Risk and Pillar 2 (Abuja) 2713–15 Dec SEACEN: Operational Risk (Colombo) 27

Seminars for Insurance Supervisors28 Feb–04 Mar Advanced Risk Management Practices in the Insurance Industry

(Lucerne)28

08–10 Mar Capital Adequacy and Risk Management (Dakar) 2803–04 May Cross-Border and Cross-Sectoral Issues (Port Louis) 2906–10 Jun JVI: Selected Insurance Core Principles (Vienna) 2908–12 Aug 1st International Insurance Supervision Seminar (Beatenberg) 3013–15 Sep Change in Control and Market Conduct (Beirut) 3020–22 Sep Reinsurance (Basel) 3103–07 Oct Risk Management Practices in the Insurance Industry (Beatenberg) 3121–24 Nov Cross-Border Supervision and Market Conduct (Cape Town) 32

Cross-Sectoral Seminars19–21 Apr Supervision of Financial Conglomerates (Basel) 3308–10 Nov Asset Liability Management for Insurance Companies and Banks (Basel) 33

Other Seminars04–08 Jul Fundamentals of Reserve Management jointly with the BIS Banking

Department (Lucerne)34

08–12 Aug Advanced Risk Management for Reserve Managers jointly with the BIS Banking and Risk Control Departments (Lucerne)

34

05–16 Dec Financial System Fragility and Banking Crises jointly with the IMF (Singapore)

35

AMF: Arab Monetary Fund

ASBA: Association of Supervisors of Banks of the Americas

BSCEE: Group of Banking Supervisors from Central and Eastern Europe

BSWCA: Committee of Bank Supervisors of West & Central Africa

CBSG: Caribbean Banking Supervisory Group

CEMLA: Centre for Latin American Monetary Studies

EMEAP: Executives’ Meeting of East Asia-Pacific Working Group on Banking Supervision

GCC: Gulf Cooperation Council Committee of Banking Supervisors

JVI: Joint Vienna Institute

SADC: Southern African Development Community

SEACEN: South East Asian Central Banks

SEANZA: Central Banks of South East Asia, New Zealand and Australia Forum of Banking Supervisors

SSBS: SADC Sub-Committee of Bank Supervisors

DATE EVENT (venue) Pg

10


Overview of FSI Connect Online Tutorials

For more information, please refer to pages 36-37 or visit our website (www.fsiconnect.org).

Capital and Basel II

Fund

amen

tal

Banks and Bank RisksBank CapitalBasel IBasel I Case Study Basel II – An OverviewBasel II – Scope of Application Basel II’s Pillar 2 – Supervisory Review ProcessBasel II’s Pillar 3 – Market DisciplineBasic Indicator & Standardized Approaches for Operational Risk*Cross-Border Implementation Issues

Inte

rmed

iate

Credit Risk Components*External Credit Risk Assessments*Basel II’s Standardized Approach – Use of External Credit Assessments*Basel II’s Simplified Standardized Approach*Basel II’s SA – Risk Weight FrameworkBasel II & Credit Risk Mitigation – An OverviewBasel II and IRB Approaches – An Introduction*Basel II - IRB for Corporates, Bank & Sovereigns * Basel II – IRB for Retail *

Adv

ance

d

Basel II – Overview of IRB Minimum RequirementsBasel II & IRB Approach – The Underlying Math and Theory Economic Capital & RAROC – An IntroductionEconomic Capital & RAROC – Approaches and Allocation Basel II’s Advanced Measurement Approach for Operational Risk*

Credit Risk

Fund

amen

tal

Credit Risk in the Loan Portfolio – An IntroductionThe Credit Risk EnvironmentCredit Granting & AdministrationCredit AnalysisAccounts Receivable & Inventory FinancingCountry RiskClaims on Sovereigns & Government EntitiesClaims on Banks & Securities Firms Commercial Loans Agricultural loans Retail LoansReal Estate LoansTrade FinanceLoan GradingLoan Loss Provisioning – An IntroductionManaging Problem LoansSupervisory Credit ClassificationLoan loss Provisioning – Types of Provisions

Inte

rmed

iate

Credit Derivatives – An IntroductionCredit Derivatives – TypesCredit Derivatives – Uses & ApplicationsCredit Derivatives – Pricing MethodsSecuritization – FundamentalsSecuritization – Asset-backed SecuritiesSecuritization – Mortgage-backed SecuritiesLoan Loss Provisioning – Methodology

Adv

ance

d

Credit Risk Modeling – An IntroductionCredit Risk Modeling – CreditMetricsCredit Risk Modeling – CreditRisk+Credit Risk Modeling – KMV & Comparison of ModelsBanks’ Internal Rating Systems

denotes tutorials that will be available by March 2005* denotes tutorials that are also included in the Credit Risk and Operational Risk modules

11


Market Risk

Fund

amen

tal

Bonds – An IntroductionEquities – An IntroductionCommodities – An IntroductionInterest Calculations & CompoundingPresent Value, Future Value & Discount FactorNPV, IRR & Reinvestment RiskDuration & ConvexityFutures – An IntroductionOptions – An IntroductionSwaps – An IntroductionMarket Risk – An IntroductionVAR – An Introduction

Inte

rmed

iate

Probability & Expected Return Distributions & Confidence LevelBond Strategies – Fundamentals Forwards – Pricing & Contract ValuationFutures – HedgingFutures – Examples of HedgesFutures – TradingFutures – ArbitrageOptions – Pricing ModelsOptions – The Binomial Option Pricing ModelSwaps – Interest Rate Swap PricingSwaps – Interest Rate Swap ValuationSwaps – Currency Swap Pricing & ValuationRegulation of Market Risk – Standardized Approach

Adv

ance

d

Options – Trading Strategies Options – Exotic OptionsVAR – Variance-Covariance ApproachVAR – Monte Carlo SimulationVAR – Historical Simulation & Other IssuesRegulation of Market Risk – Internal Models Approach

Operational Risk

Fund

amen

tal Operational Risk – An Introduction

Operational Risk Management – Sound PracticesOperational Risk Case Study

Adv

ance

d Basel II’s Advanced Measurement Approach for Operational Risk*

Upcoming TutorialsAccountingAnti-Money LaunderingBank LicensingBasel II – IRB for EquityBasel II – IRB for Purchased ReceivablesBasel II – IRB for Specialized LendingCorporate Governance (including Supervisory Governance)E-BankingForeign Bank SupervisionLiquidity Risk & SolvencyMacroeconomic IssuesOn-site & Off-site SupervisionOutsourcingProblem Bank ResolutionStress TestingSupervision of Banking Groups

Con

fere

nces

, Hig

h-Le

vel M

eetin

gs a

nd D

iscu

ssio

n Fo

rum

s

12


Heads of Banking Supervision Meeting20 April 2005, Basel, Switzerland

Topics to be determined.

Note: By invitation only.

High-Level Meetings/Discussion Forums on the Practical Application of Basel IIDates and venues of the planned meetings to be decided in close cooperation with the regions

Maximum number of participants: 35 per meeting

Note: The FSI will continue to conduct high-level meetings on Basel II for heads of banking supervision and senior supervisors responsible for the implementation of Basel II. Issues that might be discussed include: the impact of Basel II on financial systems, assessing bank practices and their state of readiness, home-host issues. The objective of these meetings is to exchange experiences, share knowledge and to promote a level playing field.

Conference on Credit Risk Transfer10–11 November 2005, Basel, Switzerland

Maximum number of participants: 80

Main topics covered:

Trends and market developments: asset securisation, credit derivatives, etc. Extent and sources of risk transfer Risk management issues associated with credit risk transfer activity Disclosures Supervisory approaches for dealing with credit risk transfer

Note: Open to insurance and banking supervisors.

13


Sem

inar

s in

Sw

itzer

land

for B

anki

ng S

uper

viso

rsSeminar on Market and Liquidity Risk18–20 January 2005, Basel, Switzerland



Measuring exposure and volatility of market factors Market risk models: types, uses, validation and backtesting Market risk management in volatile markets Regulatory requirements for the management of liquidity risk Liquidity risk and asset liability management Techniques and strategies for managing liquidity risk Supervising market and liquidity risk

Seminar on the Internal Ratings-Based Approaches and Credit Risk Modelling8–10 February 2005, Basel, Switzerland



General structure of ratings systems Quantitative and qualitative requirements Estimation of risk components: PD, LGD and EAD Validation of the internal ratings-based approaches From the internal ratings-based approaches to credit risk models

14


Sem

inar

s in

Sw

itzer

land

for B

anki

ng S

uper

viso

rs Seminar on International Accounting and Auditing for Banks15–18 March 2005, Basel, Switzerland



Overview of international accounting standards International Accounting Standard (IAS) 39: an overview with in-depth discussions on

derecognition and securitisation, derivatives and hedging activities, and loan accounting and provisioning

IAS 22 and IAS 27: accounting for business combinations and consolidated financial statements

Internal control framework and the role of bank audits International auditing standards and the process of external audit Bank disclosures, including Pillar 3 of Basel II

Note: This seminar is intended for senior banking supervisors who are not necessarily account-ing experts but are required to use bank financial information to perform supervisory functions.

Seminar on Problem Bank ResolutionJointly with the Toronto International Leadership Centre for Financial Sector Supervision31 May–2 June 2005, Basel, Switzerland



Bank failures and systemic crisis issues Contingency planning and policy coordination Identifying bank weaknesses and early warning systems Supervisory responses to problem banks Legal framework for bank insolvencies Problem bank resolution strategies Role of deposit protection schemes and other safety nets Cross-border aspects in dealing with bank liquidation Case studies on handling problem banks and managing a banking crisis

15


Sem

inar

s in

Sw

itzer

land

for B

anki

ng S

uper

viso

rs21st International Banking Supervision Seminar24 June–1 July 2005, Beatenberg, Switzerland

Maximum Number of Participants: 25


Practical Techniques for the Implementation of Basel II Scope of application Minimum capital requirements: credit and operational risks Current developments in the supervisory review process Promoting market discipline through disclosure Current Implementation efforts in G10 and non-G10 countries


Seminar on Advanced Risk Management29 August–2 September 2005, Beatenberg, Switzerland



Market risk management in volatile markets Market risk modelling Credit risk ratings and management of exposures Credit risk modelling Operational risk modelling Practical implementation issues

Note: This seminar requires knowledge of risk management techniques and issues. Participants will use Microsoft Excel spreadsheet exercises to understand and discuss various models.

16


Sem

inar

s in

Sw

itzer

land

for B

anki

ng S

uper

viso

rs Seminar on Market Risk AnalysisJointly with the Federal Reserve System12–16 September 2005, Lucerne, Switzerland



Sound risk management in banks Range of market instruments: from futures to options Identification of market risk factors Supervising market risk

Note: This seminar utilises case studies and numerous hands-on exercises.

22nd International Banking Supervision Seminar23–30 September 2005, Beatenberg, Switzerland



Core Principles for Effective Banking Supervision Corporate governance and licensing of banks Supervisory approaches and consolidated supervision Basel II: implementation challenges Market discipline and enhancing bank transparency Credit, market, liquidity and operational risk management Problem bank resolution


17


Sem

inar

s in

Sw

itzer

land

for B

anki

ng S

uper

viso

rsSeminar on Advanced International Accounting and Auditing for Banks4–7 October 2005, Basel, Switzerland



IASB – key activities, projects and plans International Accounting Standard (IAS) 39: an overview with in-depth discussions on

derecognition and securitisation, derivatives and hedging activities and loan accounting and provisioning

Interaction between regulatory capital and accounting Disclosure requirements for banks, including Pillar 3 of Basel II IFAC and IAASB international audit standard setting activities

Note: This seminar is intended for chief accountants of supervisory authorities or others with a strong working knowledge of accounting and auditing techniques.

Seminar on Practical Techniques for the Management and Measurement of Operational Risk18–20 October 2005, Basel, Switzerland



Strategies for managing operational risk in banking institutions Collecting, mapping and quantifying loss data Techniques for measuring operational risk Current developments in capital allocation for operational risk in Basel II The role of operational risk mitigants

18


Sem

inar

s in

Sw

itzer

land

for B

anki

ng S

uper

viso

rs Seminar on Stress Testing22–24 November 2005, Basel, Switzerland



Rationale and scope of application for stress testing in the financial industry Hypothetical and historical scenarios Stress testing and banking supervision Limitations of stress testing Aggregating stress test results and the macroeconomic aspects of stress testing

Seminar on On-site and Off-site Supervision, with Special Focus on Pillar 26–8 December 2005, Basel, Switzerland



Approaches to banking supervision and supervisory strategies, including early warning systems

Impact of Basel II on supervisory approaches, practices and strategies Basel II – Supervisory Review (Pillar 2) and its implementation Supervisory infrastructure: interface between on-site and off-site surveillance, human

resources policies and role of IT Risk-based supervision framework and processes, with a special focus on risk classes:

liquidity, credit and operational risks Home-host issues: supervisory cooperation in conducting on-site examinations for interna-

tionally-active banks

19


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sorsRegional Seminar on Basel II and the Internal

Ratings-Based SystemsJointly with the South East Asian Central Banks (SEACEN)28 February–3 March 2005, Kuala Lumpur, Malaysia


Internal ratings-based systems in Basel II Quantitative and qualitative requirements General structure of ratings systems Estimation of risk components: PD, LGD and EAD Validation of the internal ratings-based approaches From the internal ratings-based approaches to credit risk models

Regional Seminar on Credit Risk in Basel IIJointly with the SADC Sub-Committee of Bank Supervisors (SSBS)1–3 March 2005, Harare, Zimbabwe


Credit risk in Basel II Standardised approach Quantitative and qualitative requirements of the internal ratings-based approaches Estimation of risk components: PD, LGD and EAD Validation of the internal ratings-based approaches

20


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sors Regional Seminar on the Implementation of

Basel IIJointly with the Group of French-Speaking Supervisors9–11 March 2005, Rabat, Morocco


Etat des lieux et priorités nationales en matière de supervision bancaire (Assessing existing frameworks and national supervisory priorities)

Conséquences pratiques: Champs d’application, Pilier 1, Pilier 2 et Pilier 3 (Practical implications: scope of application, Pillar 1, Pillar 2 and Pillar 3)

Resources prudentielles et besoins de formation (Supervisory resources and training needs)

Application de Bâle 2: travailler avec l’industrie - les étapes en pratique (Implementing Basel II: working with the industry - practical steps)

Note: Ce séminaire se deroulera en français. (This seminar will be conducted in French.)

Regional Seminar on Building an Internal Ratings-Based SystemJointly with the Association of Supervisors of Banks of the Americas (ASBA)15–17 March 2005, São Paulo, Brazil


Internal ratings-based systems in Basel II Quantitative and qualitative requirements General structure of ratings systems Estimation of risk components: PD, LGD and EAD Validation of the internal ratings-based approaches From the internal ratings-based approaches to credit risk models

21


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sorsRegional Seminar on Basel II: Pillars 1 and 2

Jointly with the Arab Monetary Fund (AMF)21–23 March 2005, Abu Dhabi, United Arab Emirates


Implementing the standardised approach for credit risk Quantitative and qualitative requirements of the internal ratings-based approaches Techniques for managing, measuring and allocating capital for operational risk Supervisory infrastructure to adopt Basel II Home-host and other practial implementation issues

Regional Seminar on International Accounting and Auditing for BanksJointly with the Caribbean Banking Supervisory Group (CBSG) and open to the Offshore Group of Banking Supervisors5–7 April 2005, Kingston, Jamaica


Overview of international accounting standards International Accounting Standard (IAS) 39: an overview with in-depth discussions on

derecognition and securitisation, derivatives and hedging activities and loan accounting and provisioning

IAS 22 and IAS 27: accounting for business combinations and consolidated financial statements

Internal control framework and the role of bank audits International auditing standards and the process of external audit Bank disclosures, including Pillar 3 of Basel II

22


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sors Regional Seminar on Credit Risk in Basel II

Jointly with the Gulf Cooperation Council Committee of Banking Supervisors (GCC)10–12 April 2005, Riyadh, Saudi Arabia


Sound principles for credit risk management Overview of credit risk measurement and credit risk modelling General overview of credit risk transfer and asset securitisation: product descriptions and

structure Basel II: standardised approach to measuring regulatory capital requirements for credit

risk Basel II: IRB approaches to calculating regulatory capital requirements for credit risk Credit risk mitigation in Basel II Treatment of asset securitisation in Basel II

Regional Seminar on e-Banking and Corporate GovernanceJointly with the Committee of Bank Supervisors of West & Central Africa (BSWCA)26–28 April 2005, Banjul, The Gambia


Prudential framework for supervising e-banking activities and products E-banking and operational risk Sound corporate governance principles for banking organisations Control framework, market discipline and disclosures Supervisory responsibilities and challenges

23


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sorsWhat Banking Supervisors Need to Know About

the Securities Industry and Securities RegulationJointly with the Securities and Futures Commission of Hong Kong3–4 May 2005, Hong Kong SAR



Consolidated supervision Licensing and authorisation of investment funds and the regulation of investment fund

management officials Regulation of securities dealing firms, including conflicts of interest, disclosure require-

ments and customer due diligence Internal control regimes for securities firms Enforcement authority and actions for securities regulators

Regional Seminar on Credit Risk in Basel IIJointly with the Group of Banking Supervisors from Central and Eastern Europe (BSCEE)10–12 May 2005, Budapest, Hungary


Credit risk in Basel II Standardised approach Quantitative and qualitative requirements of the internal ratings-based approaches Estimation of risk components: PD, LGD and EAD Validation of the internal ratings-based approaches

24


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sors Regional Seminar on Financial Mathematics in

Risk Modelling and Basel IIJointly with the Central Banks of South East Asia, New Zealand and Australia Forum of Banking Supervisors (SEANZA)24–26 May 2005, Manila, Philippines


Introduction to probability theory and statistics Conceptual underpinnings behind the methodologies for calculating capital for credit and

operational risks Building internal rating systems Modelling credit risk Collecting and mapping operational risk loss data Implementing an advanced measurement approach

Regional SeminarJointly with the Executives’ Meeting of East Asia-Pacific Working Group on Banking Supervision (EMEAP)25–27 May 2005, Sydney, Australia

(Topic to be agreed upon)

25


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sorsRegional Seminar on Core Supervisory Topics

Jointly with the Joint Vienna Institute (JVI)13–17 June 2005, Vienna, Austria


Core Principles for Effective Banking Supervision Bank licensing Overview of Basel II Corporate governance

Note: This seminar is limited to supervisors from Central Asia and Transcaucasia.

Regional Seminar on Basel II: Pillar 2Jointly with the Centre for Latin American Monetary Studies (CEMLA)13–15 September 2005, Buenos Aires, Argentina or Montevideo, Uruguay


Definition of risk and capital in modern financial institutions Economic capital: how it is measured and assessed by banks Practices for the supervisory review of a bank’s internal capital adequacy assessment The how and why of requiring a bank to operate with capital above regulatory minimums Early intervention to prevent capital from falling below regulatory minimums and remedial

action Basel II implementation efforts in G10 and non-G10 countries

26


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sors Regional Seminar on Credit Risk

Jointly with the Association of Supervisors of Banks of the Americas (ASBA)20–22 September 2005, Mexico City, Mexico


Sound principles for credit risk management Loan evaluation, classification and provisioning Basel II: standardised approach to allocate regulatory capital for credit risk Basel II: IRB approaches to assign capital for credit risk Treatment of asset securitisation in Basel II Trends and market developments in credit risk transfer

Regional Seminar on Problem Bank ResolutionJointly with the SADC Sub-Committee of Bank Supervisors (SSBS)11–13 October 2005, Maseru, Lesotho


Bank failures and systemic crisis issues Contingency planning and policy coordination Identifying bank weaknesses and early warning systems Supervisory responses to problem banks Legal framework for bank insolvencies Problem bank resolution strategies Role of deposit protection schemes and other safety nets Cross-border aspects in dealing with bank liquidation

27


Reg

iona

l Sem

inar

s fo

r Ban

king

Sup

ervi

sorsRegional Seminar on Credit Risk and Pillar 2

Jointly with the Committee of Bank Supervisors of West & Central Africa (BSWCA)8–10 November 2005, Abuja, Nigeria


Sound principles for credit risk management Credit risk management in practice: a commercial bank perspective Assessment of credit risk from a supervisory perspective Loan classification and provisioning Credit risk in Basel II: the standardised approach, the internal ratings-based approaches

and credit risk mitigation Supervisory review of a bank’s capital adequacy: reviewing a bank’s internal capital

assessment, requiring capital in excess of regulatory minimums and enforcing capital requirements

Basel II implementation efforts in G10 and non-G10 countries

Regional Seminar on Operational RiskJointly with the South East Asian Central Banks (SEACEN)13–15 December 2005, Colombo, Sri Lanka


Strategies for managing operational risk in banks Current techniques for measuring operational risk in banks Current developments in allocating capital for operational risk under Basel II The role of operational risk mitigants: the case of outsourcing Supervising and promoting sound operational risk management practices

28


Sem

inar

s fo

r Ins

uran

ce S

uper

viso

rs Seminar on Advanced Risk Management Practices in the Insurance Industry28 February–4 March 2005, Lucerne, Switzerland



Value-at-risk methodologies Insurance and market risk modelling Aggregating risks with copulas Modelling of risks related to extreme events Assessment of credit and operational risk Risk-based supervision

Note: This seminar requires knowledge of risk management techniques and issues. Participants will use Microsoft Excel spreadsheet exercises to understand and discuss various models.

Regional Seminar on Capital Adequacy and Risk ManagementJointly with the International Association of Insurance Supervisors (IAIS)8–10 March 2005, Dakar, Senegal


Provisions (ou réserves) techniques, placement et gestion actif-passif (Technical provisions, investments and asset liability management)

Adéquation des fonds propres et solvabilité (Capital adequacy and solvency)

Gouvernance d’entreprise (Corporate governance)

Evaluation et gestion des risques (Risk assessment and management)

Réassurance (Reinsurance)

Note: Ce séminaire se deroulera en français. (This seminar will be conducted in French.)

29


Sem

inar

s fo

r Ins

uran

ce S

uper

viso

rsRegional Seminar on Cross-Border and Cross-Sectoral Issues3–4 May 2005, Port Louis, Mauritius


Cross-border and cross-sector supervisory challenges Supervision of financial conglomerates Risk management and corporate governance Framework for an effective supervisory structure and governance Cooperation among supervisors

Regional Seminar on Selected Insurance Core PrinciplesJointly with the Joint Vienna Institute (JVI)6–10 June 2005, Vienna, Austria


Licensing and suitability of persons Corporate governance On-site supervision Technical provisions, investments and capital adequacy Reinsurance and risk mitigation Enforcement, sanctions and winding-up

Note: This seminar is limited to supervisors from Central and Eastern Europe, Central Asia and Transcaucasia.

30


Sem

inar

s fo

r Ins

uran

ce S

uper

viso

rs 1st International Insurance Supervision Seminar8–12 August 2005, Beatenberg, Switzerland



Licensing and supervision on an on-going basis Fit and proper requirements and corporate governance Capital adequacy and risk-based supervision Risk management Reinsurance and risk mitigation Dealing with troubled insurance companies Enforcements, sanctions and winding-up

Regional Seminar on Change in Control and Market ConductJointly with the International Association of Insurance Supervisors (IAIS)13–15 September 2005, Beirut, Lebanon


Change in control, mergers and acquisitions, and due diligence Reinsurance and risk mitigation Market conduct and claims handling Information, disclosure and transparency Intermediaries and outsourcing Consumer education and protection

31


Sem

inar

s fo

r Ins

uran

ce S

uper

viso

rsSeminar on Reinsurance20–22 September 2005, Basel, Switzerland



Regulatory framework for direct and indirect supervision of reinsurance Assessment of contract terms in relation to risk coverage Role of reinsurance in capital adequacy Integrated risk management Alternative risk transfers Market discipline and transparency Supervisory challenges

Seminar on Risk Management Practices in the Insurance Industry3–7 October 2005, Beatenberg, Switzerland



Introduction to value-at-risk Insurance and market risk modelling Insurance risk integration methodologies Risk-adjusted capital and RAROC models Internal framework for capital adequacy Modelling of risks related to extreme events

Note: This seminar requires knowledge of Microsoft Excel. Participants will use spreadsheet exercises to understand and discuss various models.

32


Sem

inar

s fo

r Ins

uran

ce S

uper

viso

rs Regional Seminar on Cross-Border Supervision and Market ConductJointly with the International Association of Insurance Supervisors (IAIS)21–24 November 2005, Cape Town, South Africa


Cross-border supervision, cooperation among supervisors and exchange of information Market conduct and claims handling Information, disclosure and transparency Anti-money laundering and know-your-customer procedures Intermediaries and outsourcing Consumer education and protection

33


Cro

ss-S

ecto

ral S

emin

arsSeminar on Supervision of Financial

Conglomerates19–21 April 2005, Basel, Switzerland



Regulatory framework for financial conglomerates Group-wide capital adequacy models Intra-group transactions and exposures Integrated group-wide risk management Supervision on a group-wide basis Cross-sectoral and cross-border cooperation

Seminar on Asset Liability Management for Insurance Companies and Banks8–10 November 2005, Basel, Switzerland



Objectives and role of asset liability management (ALM) Accounting practices and their relevance to ALM Balance sheet analysis Strategic and tactical asset allocation and liability management Regulatory and supervisory approaches to ALM

34


Oth

er S

emin

ars Seminar on the Fundamentals of Reserve

ManagementJointly with the BIS Banking Department4–8 July 2005, Lucerne, Switzerland



Techniques for portfolio performance measurement Customising benchmarks Portfolio management strategies Selecting an external funds manager

Note: This seminar is intended for central bank portfolio managers.

Seminar on Advanced Risk Management for Reserve ManagersJointly with the BIS Banking and Risk Control Departments8–12 August 2005, Lucerne, Switzerland



Managing risks in various asset classes Portfolio optimisation techniques Evolving techniques in risk management BIS risk management control framework

Note: This seminar is intended for central bank portfolio managers with a sound knowledge of risk management.

35


Oth

er S

emin

arsSeminar on Financial System Fragility and

Banking CrisesJointly with the International Monetary Fund (IMF)5–16 December 2005, Singapore



Anatomy of a financial crisis Financial liberalisation and reform Banking currency and debt crisis: the links and macroeconomic consequences Banking regulation and supervision Issues in corporate governance Deposit insurance systems: design and operation Role and function of the lender of last resort Early warning indicators: micro and macro Resolution strategies Case studies: Argentina, Korea, Japan, Mexico, Thailand, United States

Note: This seminar is intended for mid- to senior-level officials involved in the formulation of macroeconomic and financial policies. Attendance is open to individuals from central banks, finance ministries and financial sector regulatory authorities.

36

FSI FinancialStabilityInstitute

FSI ConnectIn June 2004, the FSI launched FSI Connect – a web-based information resource and learning tool for bank supervisors worldwide. FSI Connect, which is available by subscription, offers a comprehensive set of online tutorials directly related to banking and bank supervision, refl ecting the most up-to-date information.

Extensive coverage FSI Connect currently offers more than 80 tutorials (totalling approximately 100 hours of content) covering capital adequacy (including Basel I and II) as well as important risk management topics, such as credit risk, market risk and operational risk. In addition, FSI Connect includes tutorials on topics such as fi nancial instruments, banking practices and banking supervision. The tutorials have a duration ranging from 30 minutes to 2 hours and cover fundamental, intermediate and advanced levels.

Dynamic content In developing FSI Connect tutorials, the FSI seeks to provide the most up-to-date information that super-visors need to perform their jobs. Newly developed tutorials are added on a continuous basis and the content of existing tutorials is reviewed periodically to ensure it remains accurate and up to date.

Interactive methodology FSI Connect employs a four-phase integrated learning methodology called OCCE – Orientate, Communicate, Connect and Evaluate. The tutorials use a mix of text, graphics and interactive elements (such as quizzes, exercises, and simulations) to motivate the learners and to promote a high level of knowledge retention.

Integrated learning FSI Connect can and should be integrated with other forms of learning such as seminars, workshops or conferences attended by supervisors. Since FSI Connect is available anywhere, it can also support on-the-job training initiatives. The FSI will increasingly offer access to specifi c FSI Connect tutorials to our seminar participants to give them the opportunity to prepare for upcoming events.

“The FSI Connect content is very relevant to supervisors. In particular,

the Basel II coverage is quite extensive.”

“The tutorials are easy to navigate with numerous options to click on a

link to learn more.”

“The material is presented with plenty of visual stimulus to help keep

the learner interested and alert.”

37


Flexible learning FSI Connect can be used by supervisors at all levels. Starting supervisors who need to quickly gain a broad knowledge of supervisory topics might take one or several modules (for example, Credit Risk- fundamental level) and take all tutorials in that module sequentially. More experienced supervisors might need to refresh or expand their knowledge of specifi c topics and therefore would be recommended to take one or more tutorials dealing with those topics. Finally, all supervisors can use FSI Connect as a reference tool by browsing the list of tutorials or using the glossary to quickly access information.

Cost effectivenessMany supervisory authorities and central banks are currently evaluating their staff development requirements to achieve full implementation of Basel II. FSI Connect tutorials, offer a ready-made solution that can be easily integrated into an existing training programme.

FSI Connect fees are quite moderate and represent only a fraction of the cost of similar products. FSI Connect is accessible any time and everywhere and can therefore reduce costs related to attending seminars and conferences.

FSI Connect requires very little in terms of administration from subscribing institutions. However, FSI Connect offers strong administrative capabilities that allow line managers or training managers to monitor and track staff usage and progress.

FSI Connect trial and subscriptionFSI Connect is available by subscription to all central banks and supervisory authorities. A discount is available depending on the number of subscriptions an agency purchases and whether it purchases a one year or two year subscription.

To help you better assess the benefi ts of FSI Connect, we are offering supervisory agencies and central banks a free trial period.

“The case studies in the Connect phase are quite interesting and

challenging. They really help me apply what I had learned in other

parts of the tutorials.”

“As a training manager, I fi nd the monitoring function very useful. It helps me plan effi ciently my staff

training and follow up their progress.“

For further information, please contact us at the following email address:

[email protected].

Please visit our website: www.fsiconnect.org.

38


Elizabeth Roberts, DirectorFormer positions include: Manager, Examination Policy and Procedures Section in the Division of Banking Supervision and Regulation at the Federal Reserve Board; Member of the Basel Committee Secretariat, in which capacity she was a primary author of the “Core Principles for Effective Banking Supervi-sion” and the “Core Principles Methodology”; Manager, International Policy Section in the Federal Reserve’s Division of Banking Supervision and Regula-tion, in which capacity she participated in the development of the Federal Reserve’s programme for supervising the U.S. operations of foreign banks. Represents the FSI in the Basel Committee’s Core Principles Liaison Group.

Meet the People at the FSI

Roland Raskopf, Senior Financial Sector SpecialistFormer positions include: Bundesbank Director, Head of Market Risk Models Examination and Validation and Senior Field Examiner in the Banking Supervi-sion Department at Deutsche Bundesbank; Treasury Offi cer, Risk Manage-ment at EBRD, London; Economist, Deutsche Bundesbank (Preparation of G10 Governors meetings). Former member of the Basel Committee’s Models Task Force (involved in the development of the Market Risk Amendment and in the study on internal credit rating systems). Represents the FSI in the Basel Committee’s Accord Implementation Group and IRB Validation Sub-group.

Juan Carlos Crisanto, Senior Financial Sector SpecialistFormer positions include: Head of the Regulation Department at the Peruvian Financial Authority, where he headed a multidisciplinary team of professionals designing and implementing norms for the banking, insurance and pension fund industries. Member of the Board, Peruvian Investment Commission. Lecturer on banking related topics at Católica and Pacifi co Universities. Researcher on banking regulation and central banking with the Centre of European Law, UK. Represents the FSI in the Basel Committee’s Risk Man-agement & Modelling Group and AIG’s Operational Risk Sub-group.

Jason George, Senior Financial Sector SpecialistFormer positions include: IMF Advisor to the Bank of Thailand, during which time he assisted in the strengthening of its bank supervision function; USAID Advisor to the Croatian National Bank focusing on strengthening supervision in general with an emphasis on the development of an offsite function; Review Examiner and Capital Markets Specialist, Federal Deposit Insurance Corpora-tion, overseeing all supervisory activities for a portfolio of fi nancial institutions in the western United States. In addition, participated in the resolution of several of the largest bank failures in U.S. history. Represents the FSI in the Basel Committee’s Accounting Task Force.

Josef Tošovský, ChairmanFormer positions include: Governor of the Czech National Bank; Prime Minister of the Czech Republic; Deputy Director of the London branch offi ce of Zivnostenská banka; Advisor to the President of the State Bank of Czecho-slovakia; Associate professor, University of Economics, Prague; Honorary doctorate, Mendelova Universita Brno, 2002. Awards include: Central Banker of the Year (1993); European Manager of the Year (1994), European Banker of the Year (1996), and the EastWest Institute Award for Leadership in Transition (2001). Represents the FSI in the Basel Committee on Banking Supervision.

39


Gunilla Borer, Senior Financial Sector SpecialistFormer positions include: Legal counsel responsible for international relations at the Swedish Financial Supervisory Authority; delegate at various interna-tional organisations and active in the development of insurance standards within the European Union and the IAIS; provider of technical assistance and lecturer in emerging markets and transition economies; expert to the Swedish Ministry of Finance in matters of legislative preparations; Director and legal consultant in fi nancial services matters at Ernst & Young. Represents the FSI in the IAIS Emerging Markets Committee, Education Subcommittee and Core Curriculum Task Force.

Stefan Hohl, Senior Economist (Supervision), BIS Asian Offi ceFormer positions include: Head of Market Risk Models Examination and Vali-dation Team, Head of Risk Research Team, and Senior Field Examiner in the Banking Supervision Department at Deutsche Bundesbank; portfolio manager for an investment fi rm; founding member of start-up company. Represents the FSI in the Basel Committee’s Accord Implementation IRB Validation Sub-group.

Moses Pelaelo, Senior Financial Sector SpecialistFormer positions include: Director of Banking Supervision, Financial Institu-tions and Administrative Services Departments, Bank of Botswana; Principal Bank Examiner, Banking Supervision Department, Bank of Botswana; Lecturer and Staff Development Fellow, University of Botswana; Assistant Lecturer, Botswana Institute of Administration and Commerce. Represents the FSI in the Basel Committee’s Core Principles Liaison Group - Working Group on Capital.

William Coen, Senior Financial Sector SpecialistFormer positions include: Member of the Basel Committee Secretariat, in which capacity he was actively involved in revisions to the Basel Capital Accord and responsible for liaising with banking supervisors in non-G10 coun-tries; Federal Reserve Board - Division of Banking Supervision and Regula-tion: Policy Development, Large and Regional Bank Supervision, Applications Section; Associate National Bank Examiner, Offi ce of the Comptroller of the Currency; Assistant Vice President, CrossLand Savings Bank. Represents the FSI in the Basel Committee’s Corporate Governance Group.

Yves Carlier, FSI Connect Project ManagerFormer positions include: Senior Business Analyst and Project Manager, Monetary and Economic Department, Bank for International Settlements; Member of the Secretariat (Joint Year 2000 Council), Basel Committee on Banking Supervision; Assistant Secretary and Business Analyst, Secretariat of the G10 Group of Computer Experts; Business Analyst, Generale Bank.

40


Ranjana Sahajwala, Senior Financial Sector SpecialistFormer positions include: Member, Project Implementation Group, Risk-based Supervision, Reserve Bank of India; Visiting Fellow, Basel Committee Secretariat, in which capacity she surveyed early warning systems of bank fragility in G10 countries; Deputy General Manager, Banking Policy, and Assistant General Manager, International Banking Division, Reserve Bank of India, during which time she worked on prudential regulation issues, foreign bank licensing, cross-border supervision, anti-money laundering and WTO negotiations in fi nancial services. Represents the FSI in the Basel Committee’s Accounting Task Force (subgroup on IAS 39).

Karin Reichardt-Petry, Senior Financial Sector SpecialistFormer positions include: Senior Field Examiner for on-site approval of risk management models in the Banking Supervision Department, Deutsche Bun-desbank; Representative of Deutsche Bundesbank in the Asset Securitisation Group of the Basel Committee and also at European Union level; bond trader in German government securities, Deutsche Bundesbank; Branch Manager at a German savings bank; lecturer on risk management, asset securitisation, credit derivatives and banking supervisory topics. Represents the FSI in the Basel Committee’s Overall Capital/QIS Group.

Jean-Philippe Svoronos, Senior Financial Sector SpecialistFormer positions include: Member of the Basel Committee Secretariat, in which capacity he was actively involved in revisions to the Basel Capital Accord and the Committee’s work on e-banking; Director of Research and Supervision, Nice branch, Bank of France; Financial Analyst/Project Manager, Finance and Corporate Planning Division, Société Générale; Head of Foreign Banks Supervisory Group and Deputy Head of Large French Banks Supervi-sory Group, Commission Bancaire. Represents the FSI in the Basel Commit-tee’s Capital Task Force.

Denis Sicotte, Senior Financial Sector SpecialistFormer positions include: Director, Capital Division, Offi ce of the Superintend-ent of Financial Institutions (Canada); OSFI representative on the Joint Forum and on the Basel Committee Capital Group with responsibility for the Scope of application part of the Basel II framework; member of the Basel Committee Secretariat, and expanded secretariat drafting the Basel II framework. During a long career in OSFI, he participated in the many and various facets of banking and insurance company supervision. Represents the FSI in the Basel Commit-tee’s Accounting and Capital Group.

Gregory Sutton, Senior Economist Former positions include: Investment Analyst in the Banking Department of the Bank for International Settlements (BIS); Economist in the Monetary and Economic Department of the BIS, in which capacity he focused on fi nancial market issues and conducted research on asset pricing models; Instructor at Yale University, in which capacity he taught an advanced undergraduate course on topics in macroeconomics.

41


Esther KünziTechnical Administrator

Bettina MüllerAdministrative Secretary

Carmen GonzalezAdministrative Secretary

Alexandra ColeAdministrative Secretary

Your Seminar Organisation Team

42


Contact Details:

Financial Stability InstituteBank for International SettlementsCentralbahnplatz 24002 BaselSwitzerland

Tel: +41 61 280 9989Fax: +41 61 280 9100Email: [email protected]

FSI 2005 Programme - bis.org

Documents

Transcript of FSI 2005 Programme - bis.org