International Financial Conglomerates – Issues and Challenges Session 7: Cross Border Supervisory Issues Presented by Douglas W. Roeder, Senior Deputy.

Slides:

Advertisements

Similar presentations

The Benefits and Challenges of Implementation of Basel II in Europe José María Roldán | 27 Sept 2005.

Advertisements

Interpreting Basel II requirements and implementing within Europe José María Roldán| 6 April 2005.

COORDINATION OF SUPERVISION OF FINANCIAL GROUPS Roundtable on the Review of the Financial Conglomerates Directive 8 September 2008 Freddy Van den Spiegel.

EU-China Roundtable on Financial Services and Regulation José María Roldán | 28 Oct 2005.

Deposit insurance in the European Union José María Roldán | 13 Oct 2005.

Regulating a Single Banking System José María Roldán Chair, Committee of European Banking Supervisors (CEBS) Committee of European Banking Supervisors.

1 June 2005 Cross Border Implementation of Basel II Kevin Davis Commonwealth Bank Group Chair of Finance The University of Melbourne Director, Melbourne.

BASEL COMMITTEE ON BANKING SUPERVISION Current Developments in the Implementation of Basel II Presentation to the FSI-ASBA High-level meeting Rio de Janeiro,

Agenda Basel Refresher Basel II Regulatory Landscape Basel II Timeline

Monitoring Compliance with the Basel II Accord Charles H. Le Grand Reliability of Global Financial Infrastructures, Information, and Reporting Accountability.

1 The critical challenge facing banks and regulators under Basel II: improving risk management through implementation of Pillar 2 Simon Topping Hong Kong.

1 Lecture 6b: An Introduction The Basel I & Basel II.

Presented by Muhamad Abrar Bahaman W. Fatimatul Akmar Md. Hassan

Meeting of Budget and Economic Committees Chairpersons Prague, April 2009 Zdeněk Tůma Towards new European framework of financial regulation and.

Hungarian Approach to Basel II. Katalin Mérő National Bank of Hungary September 2002.

Restricted 1 Dynamics in accounting and auditing in relation to banking supervision Prof. Arnold Schilder Chairman, BCBS Accounting Task Force.

Eurasian Corporate Governance Roundtable

Basel II and Emerging Markets The Future of Banking Regulation London School of Economics April 7–8, 2005 Gerd Häusler Counsellor and Director International.

CEBS – The Challenges of Supervisory Convergence José María Roldán | 21 June 2005.

The Basel Committee’s Approach

BASEL COMMITTEE ON BANKING SUPERVISION 1 Cross-Border Supervisory Cooperation under the Revised Basel Core Principles and Basel II 6th Annual International.

Practical Implications of Regulatory Convergence – Lessons from Basel II Mary Frances Monroe Division of Banking Supervision and Regulation Board of Governors.

1 Basel II – The Implementation Phase Simon Topping Hong Kong Monetary Authority / City University of Hong Kong 9 March 2005 Banking & Finance Technology.

Basel II Impact on banking processes ISACA Roundtable 2 November 2009 Ronald Holsbeeke RA RE CIA CISA.

Consolidated Supervision: Managing the Risks in a Diversified Financial Services Industry Barbara Baldwin June 2001.

Financial Conglomerates, What are the Inherent Risks? 2006 CIAB Conference Port-of-Spain, Trinidad & Tobago November 16, 2006 Thordur Olafsson, CARTAC.

Supervision of Internationally Active Banks under Basel II (Cases of Japan) June 7, 2006 Shunsuke Shirakawa Director for International Banking FSA, Japan.

1 The Asian Banker Summit 2004 Capital Management After Basel II Simon Topping Executive Director (Banking Policy) Hong Kong Monetary Authority 5 May 2004.

Basel 2: Current Status Phil Rogers, HSBC Bank Credit and Risk 25 July 2006.

Cross-Border Supervisory Cooperation: Regional Developments Delia Cárdenas Superintendent of Banks of Panama Washington, D.C. June 7, 2006.

CEBS in Brief. The Lamfalussy approach The Lamfalussy approach was first implemented in the securities field following the recommendations of the Committee.

Date (Arial 16pt) Title of the event – (Arial 28pt bold) Subtitle for event – (Arial 28pt) Implementation and policy overview Directors of General Insurance,

Impact of the Financial Crisis and Lessons Learnt Impact of the Financial Crisis and Lessons Learnt Rob Curtis Regional Information Session, Cape Town.

1 IFRS in the Banking Sector A supervisor’s perspective REPARIS Workshop Marc Pickeur Vienna CBFA March 2006 Belgium.

Regulatory Convergence under Post Basel II: some comments Giovanni Majnoni Contractual Saving Conference Washington, DC, May 1, 2002.

Supervisory Colleges Ian Tower Workshop on Cross-Border Supervision and Consolidated Supervision June 2-4, 2015 Beirut, Lebanon.

B RITISH B ANKERS' A SSOCIATION Implementing Basel II a trade association view Simon Hills Director Prudential Capital & Risk.

The Building Block Approach – A tool for regulatory and supervisory reforms for microfinance European MF week 2012, Luxembourg,

Basel-II Implementation & Implication BASEL II ACCORD Implications & Implementation by M. Saeed Sajid Institute of Chartered Accountant of India Riyadh.

Supervisory Assessment of Subsidiaries‘ Loan Portfolios And Cooperation With Host Supervisors Vienna, 21. October 2014 Boris Simunovic CFA, FRM OeNB On-Site.

Institute Seminar on the Impact of Basel II A European Perspective on Basel II implementation Institute of International Bankers New-York Danièle Nouy.

Future of Credit Risk Management: Supervisory Approach to Basel II CIA Annual Meeting Session 4405 Ben Gully Director, Basel Implementation Division Office.

New Capital Accord Basel II Challenges for the Asia-Pacific Region Stephen Y.L. Cheung Department of Economics and Finance City University of Hong Kong.

Basel II Implementation Challenges for a Global Bank Mumbai, March 13 Andy Charlton Group Head, Basel Implementation.

Political Economy of the Basel II Process Tom de Swaan, CFO ABN AMRO Bank LSE Conference April 8, 2005.

1 Issues for Consideration in the Solvency Modernization Initiative Ramon Calderon Deputy Commissioner, California Department of Insurance Chair, NAIC.

Cross-Border Supervisory Cooperation under Basel II and the Revised Basel Core Principles 6th Annual International Seminar on Policy Challenges for the.

Basel Committee Norms. Basel Framework Basel Committee set up in 1974 Objectives –Supervision must be adequate –No foreign bank should escape supervision.

Implementation of Insurance Core Principles and FSAP Evaluations The Portuguese FSAP experience Gabriel Bernardino Instituto de Seguros de Portugal.

The Future of Banking Regulation 7-8 April 2005, LSE Oliver Page OBE Director Major Retail Groups Division.

A regulatory perspective: assessing ‘best practice’ risk systems Michael Ainley Head of Wholesale Banks Department Financial Services Authority, UK 18.

Challenges in Validation: Taking the Study Findings Forward A Corporate Perspective Lyn McGowan RBC Financial Group Advanced IRB Forum New York, June 19,

Task Force on Banking Crisis Resolution Procedures Assonime-CEPS-Unicredit Task Force on Banking Crisis Resolution Procedures Key issues in bank crisis.

1 Vereniging van Compliance Officers The Compliance Function in Banks Amsterdam, 10 June 2004 Marc Pickeur CBFA CBFA.

AGENDA Proportionality: a challenge for regulation

Supervision of Insurance Market Conduct in Canada

CROSS-BORDER SUPERVISORY COOPERATION REGIONAL DEVELOPMENTS

CEBS – Role, Programme and Challenges

EU-China Roundtable on Financial Services and Regulation

Deputy Executive Officer: Insurance Financial Services Board

CEBS – The Challenges of Supervisory Convergence

Sarah Dahlgren Federal Reserve Bank of New York June 1, 2005

EBA Workshop The application of proportionality measures in the EBA’s regulatory work Efforts and difficulties to incorporate proportionality into the.

Support for the AASHTO Committee on Planning (COP) and its Subcommittees in Responding to the AASHTO Strategic Plan Prepared for NCHRP 8-36, TASK 138.

CEBS’ role in the CRD implementation

Solvency 2 The final countdown

EU-China Roundtable on Financial Services and Regulation

Cross-border Insolvency: The FSB Key Attributes of Effective Resolution Regimes Eva Hüpkes Role of Deposit Insurance in Bank Resolution Framework – Lessons.

Assessing compliance with ICPs ICP 17

Presentation transcript:

International Financial Conglomerates – Issues and Challenges Session 7: Cross Border Supervisory Issues Presented by Douglas W. Roeder, Senior Deputy Comptroller for Large Banks Office of the Comptroller of the Currency (OCC) June 2, 2005

Basel II Implementation The Basel II Framework set forth in 2004 provides a basis for countries to begin national implementation processes. Implementation will be complex and lengthy. Essentially, Basel II presents more complex variants of long-standing cross-border supervision issues.

What will it take for Basel II to be implemented well? It is highly important that Basel II not be treated as a compliance exercise. Basel II has to become part of the governance and day-to-day management of the bank. The advanced approaches under Basel II will involve making complex judgments by both banks and supervisors. Effective communication is key. Need to enrich coordinative supervisory framework among home/host supervisors.

What will it take for Basel II to be implemented well? Host jurisdictions need to think about what information they need in order to rely on systems and controls (e.g., data, models, calculations) outside of their jurisdictions. Home jurisdictions need to think about effective ways to communicate with host jurisdictions about their assessment of the adequacy of centralized risk measurement and management systems and controls. Banks need to have realistic expectations, and play their part to communicate effectively with host jurisdictions.

Home-Host Issues Home-host issues are numerous and complex (group-wide -- advanced approaches; non-home subsidiaries -- simpler approaches). Industry is justifiably concerned about regulatory burden associated with differences in the application of Basel II. Examples of home-host issues include: Scope of application; transitional approaches; differing implementation dates; use of national discretion; significant subsidiaries for AMA; and Pillar 2

Accord Implementation Group (AIG) AIG efforts should result in greater transparency on home/host supervisory approaches to Basel II implementation, and validation techniques. Supervisory Working Groups have been organized to facilitate cross-border Basel II implementation at institutions.

High-level Principles In 2003, AIG published a set of high-level cross-border supervision principles for Basel II implementation. Underscore the need for greater supervisory coordination and information-sharing. However, respects and acknowledges legal responsibilities of host jurisdictions. Strongly encourages home/host supervisors to work closely to reduce burden on banking groups.

High Priority AIG Work Broaden and deepen the number of cross-border case studies. Collect information on internal ratings based (IRB) validation practices and methods for both banks and supervisors. Contribute to Capital Task Force (CTF) work on economic downturn LGDs. Share information and experiences on: AMA; Pillar 2; and National Discretion Broaden interaction with non-G10 countries. Continue work with CPWG on home-host information sharing.

Concluding Thoughts AIG is accelerating its work activity and will play a key role. Clear communication and preparedness on part of home supervisor is key to good home/host coordination. In practice, strengthening coordinated supervisory working arrangements among home/host supervisors will be a challenge and take some time. Banks also have a critical role in home/host arena.