Federal Reserve System Training Center
1850 K Street, N.W., Fourth Floor, Washington, D.C.
Organized by the Financial and Private Sector Vice Presidency of the World Bank, the Federal Reserve Board, and the International Monetary Fund.
The objectives of this seminar are to familiarize participants with emerging financial sector issues and trends, reinforce the importance of bank and financial sector regulation and supervision for economic growth and development, discuss different regulatory and supervisory approaches, suggest solutions for dealing with bank insolvency and financial system distress, update supervision and examination skills in the context of advances in risk assessment and management, and provide tools to aid in leading change management in their organizations At the conclusion of the seminar, participants will be better informed of the advances in risk-focused supervision and in the techniques of assessing management, asset quality, capital adequacy, earnings, liquidity, operational and market risk, and overall financial condition of a bank; will have enhanced their understanding of the means to regulate and supervise financial conglomerates which include banks; will have strengthened their skills in analyzing bank financial statements and prudential reports; and will have gained inputs for improving the on-site examination and off-site monitoring capabilities in their jurisdictions.
Senior bank supervisors from emerging economies, including heads and deputy heads of supervision, directors of bank supervision, or high-level officials involved in policymaking for the supervision and regulation of banks, and a limited number of World Bank and International Monetary Fund staff engaged in financial sector work.
Building on the World Bank and International Monetary Fund cross-country experiences and the Federal Reserve Board's expertise, this two-week seminar focuses on practical aspects of key supervisory topics in developing countries and to define strategies and policies for the regulation and supervision of banking systems. The seminar seeks to familiarize participants with emerging financial sector issues and trends, reinforce the importance of bank and financial sector regulation and supervision for economic growth and development, discuss different regulatory and supervisory approaches, suggest solutions for dealing with bank insolvency and financial system distress, and to update supervision and examination skills.
Strong and effective bank supervision and prudential regulation are cornerstones of a healthy financial system. Since the 1980s, nearly every financial sector adjustment operation undertaken by the World Bank has included a component for strengthening bank supervision and prudential regulation. 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 department and training courses. Training, to the extent that it has been conducted in the developing countries, has been narrow in focus and has frequently not kept pace with changes in the outside world.
This seminar will attempt to overcome some of these shortcomings by bringing together a group of participants from a wide variety of countries. The first week focuses on discussions of the principal policy issues facing bank supervisors in developing countries. The first week's sessions attempt to establish the linkages between financial system health and macroeconomic performance. From these broader discussions, the seminar moves to discussions concerning the causes of financial system distress, the supervisory problems which result, and possible solutions to financial system distress including the restructuring of the banking systems. World Bank and International Monetary staff and a distinguished group of experts from the United States' bank supervisory agencies, other advanced supervisory agencies, and the Basel Committee lead the first week's discussions.
The second week of the seminar focus on skills development. Instructors from the Federal Reserve System and other advanced supervisory agencies discuss bank examination and supervision techniques. Principal topics include: risk focused supervision, operational Risk Assessment, Market Liquidity Risk and Aggregate Risk Assessment. The topics are presented using combination of lecture, class discussion, case studies, group exercise and class presentations. Class participation and interaction are encouraged as an effective means of sharing ideas and learning.
This seminar continues the process of World Bank, Federal Reserve System and International Monetary Fund technical assistance to developing countries in establishing strong and effective bank supervision programs and in providing alternative for the restructuring of distressed banking systems that is necessary for restoring economic growth, vitality, and development.
Week 1 - Monday • October 20, 2008
The Current Period of Market Turbulence: Causes and Consequences", Roger Cole, Federal Reserve Board
The Current Period of Market Turbulence: Supervisory Lessons Learned", Jon Greenlee, Federal Reserve Board
The Global Turmoil and its Impact on Emerging Markets", Mahmood Pradhan and Laura Kodres, IMF
Week 1 - Tuesday • October 21, 2008
Stress Testing", Kapo Yuen, Federal Reserve Bank of New York
Rating Agencies and their Methodologies", Laura Feinland Katz, Standard & Poor
Week 1 - Wednesday - October 22, 2008
Leadership and Management Challenges for Bank Supervisors", Gerry Lewis, Toronto Center
Leading Organization Change Management Workshop", William Ryback, Toronto Center
Case Study - Continental Illinois National Bank & Trust Co.", William Ryback, Toronto Center
Week 1 - Thursday - October 23, 2008
Systemic Surveillance and Use of Macro Prudential Indicators, Mariano Cortes, IMF
Deposit Insurance, Steve Seelig, IMF
Global Supervisory Standards and BCP Overview", Elizabeth Roberts, Financial Stability Institute
The Importance of Institutional Strengthening for Basel II Pillar II, Elizabeth Roberts, Financial Stability Institute
Week 1 - Friday - October 24, 2008
Supervision of Financial Conglomerates", Joaquin G. Gutierrez, World Bank
Problem Bank Resolution Methodology", David Hoelscher, IMF
Week 2 - Monday • October 27, 2008
"Financial Sector Assessment Program and FIRST Initiative", Robert Liu, World Bank
"Supervision of Foreign Banks: The U.S. Approach", Jack Jennings, Federal Reserve Board "Risk-Focused Supervision: Examination Process Overview", Robert Walker, Federal Reserve Board"Risk-Focused Supervision: Examination Documents", Robert Walker, Federal Reserve Board
"Examination Documents - My Bank", Robert Walker, Federal Reserve Board
Week 2 - Tuesday - October 28, 2008
"Credit Risk Assessment Overview", Robert Walker, Federal Reserve Board
"Credit Risk Examination Techniques and Modeling", Robert Walker, Federal Reserve Board
Week 2 - Wednesday - October 29, 2008
"Operational Risk Assessment Overview", Paul Kellogg, Federal Reserve Bank of Chicago "Operational Risk Examination Techniques and Modeling", Paul Kellogg, Federal Reserve Bank of Chicago
Week 2 - Thursday - October 30, 2008
"Market/Liquidity Risk Assessment Overview", Dale Klein, Federal Reserve Bank of Atlanta
"Market/Liquidity Risk Examination Techniques and Modeling", Dale Klein, Federal Reserve Bank of Atlanta
"Supplemental presentation on CDO Structure", Dale Klein, Federal Reserve Bank of Atlanta
Week 2 - Friday - October 31, 2008"Aggregate Risk Assessment Overview", Robert Walker, Federal Reserve Board
Observations on Risk Management Practices during the Recent Market Turbulence" - Released by the Senior Supervisors Group, March 6, 2008
Please visit the previous years' seminar website at:
Seminar for Senior Bank Supervisors, October 16-27, 2006
Seminar for Senior Bank Supervisors, October 18-29, 2004
Seminar for Senior Bank Supervisors, October 20–31,2003