UNITED STATE AGENCY FOR INTERNATIONAL DEVELOPMENT Off-site Bank Supervision Data Base System FINA FinA. USAID/ Off-site Bank Supervision System. 1999 - 2005

Key Components of Effective Bank Supervision Legal/regulatory framework that minimizes bank risks Monitoring of banks by a Supervisory Authority for financial soundness and Compliance with legal/regulatory framework through a combination of on-site and off-site supervision The key components of effective bank supervision are: 1) a legal regulatory framework that minimizes bank risks, and 2) monitoring of banks by a supervisory authority for financial soundness and compliance. USAID's Bank Supervision Data Base Project

The Need for Off-site Supervision Systems Assists on-site supervisors to focus bank examinations Provides information for the financial evaluation of banks between on-site examinations Provides early warning of emerging bank financial problems Monitors the overall financial condition of the banking system Monitoring of banks by the supervisory authority also has two components. It is done through a combination of on-site and off-site supervision. On site supervision takes place when a bank supervisor makes a visit to the bank to verify financial statements and to review bank policies and procedures. Off-site supervision takes place when a bank supervisor conducts a desk review of periodic financial reports submitted by the banks. Off-site supervision systems serve the following critical functions: assist on-site supervisors to focus bank examinations, provide information for the financial evaluation of banks between on-site examinations, provide early warning of emerging banks financial problems, and monitor the overall financial condition of the banking system. USAID's Bank Supervision Data Base Project

Off-site Systems Different Countries Many countries rely on spreadsheets for their off-site supervision. Certain countries have a database in place, but no system that can automatically process reports. In countries with report processing capability, the report format is often hard-coded Changes in Input and/or Output forms requires changes in source code. Off-site systems in emerging economies: Many emerging market countries rely on a series of spreadsheets for off-site supervision analysis. To make a change to an input report, all files must be opened and updated. In addition, the spreadsheet files are often stored in several places. Other countries house the financial data from banks in a database, but must create a spreadsheet for each analytical report needed and the data must be entered manually. A review of such spreadsheets in two countries found numerous errors in the files. Countries with pre-formatted report processing capability often use a hard-coded report format. Consequently, every time the report format and/or content changes a programmer is required to make that change. USAID's Bank Supervision Data Base Project

Background on FinA USAID sponsored the development of FinA in response to a need for better off-site supervision systems. SRA International, Seta corporation and First Irish Financial, Ltd. developed FinA in collaboration with local development teams in Republic of Armenia and Republic of Georgia. Armenia and Georgia both implemented FinA in February 2002. USAID sponsored the development of FinA in response to a need for better off-site supervision systems in emerging economies. First Irish Financial Limited developed FinA in collaboration with local development teams in the Republics of Armenia and Georgia. Armenia and Georgia both implemented FinA in February 2002. USAID's Bank Supervision Data Base Project

FinA Highlights/Benefits FinA uses the latest technology to capture and process data. FinA centralizes data. FinA is customizable at user level. FinA is independent of any legal, regulatory, or accounting framework. Highlights of FinA: FinA uses the latest technology to capture and process data. All information is stored in one place, one database. Changes to the number of users and/or size of stored information do not affect system performance. A non-technical user can do changes to the reports. The format and/or content of the reports are not hard-coded and involvement of a programmer is not required. USAID's Bank Supervision Data Base Project

Client can be installed on MS Windows NT/98/2000/XP. System Architecture Client can be installed on MS Windows NT/98/2000/XP. Application Server is JBoss (open source, no cost) Database Server: MS SQL, Oracle, MySql FinA is written in Java and has three-tier system architecture. The client side can be installed on any operating system. The application uses the open source, no cost Java Boss server that connects to a SQL7.0 database. The system has been tested and operates with Oracle, DB2, and later versions of Microsoft SQL server. USAID's Bank Supervision Data Base Project

Improves timeliness and accuracy of reporting Summary FinA centralizes data Is user configurable Is easily modifiable Improves timeliness and accuracy of reporting Is independent of legal, regulatory, and accounting frameworks Now that we have completed a basic demonstration of the system we want to summarize some of the key advantages of FinA. It centralizes data, is user configurable, is easily modifiable with no disruption of historical data, improves timeliness and accuracy of reporting, operates in any legal, regulatory, and accounting framework. USAID's Bank Supervision Data Base Project

Contact Information Michael Austin, USAID/IRM/CIS E-mail: MAustin@usaid.gov Voice: (202) 712-5368 Fax: (202) 216-3068 Chris Barltrop, USAID / EGAT Tel +1 (202) 712-5413 Fax +1 (202) 216-3025 E-mail cbarltrop@usaid.gov For further information please contact Michael Austin. E-mail maustin at usaid dot gov. Telephone number 2027125368 and fax number 2022163068. Thank you. USAID's Bank Supervision Data Base Project