Wednesday, June 2, 2010
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Marriner S. Eccles Building
Federal Reserve Board
20th and C Streets, N.W.
Washington, D.C.
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9:15 -9:45
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Registration
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9:45 – 9:55
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Welcoming Remarks and Administrative Announcements
Sarkis Yoghourtdjian, Assistant Director, Division of Banking Supervision and Regulation,
Board of Governors of the Federal Reserve System
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9:55 – 10:05
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Opening Remarks
Patrick Parkinson, Director, Division of Banking Supervision and Regulation,
Board of Governors of the Federal Reserve System
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10:05 –10:15
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Inaugural Address
Ben Bernanke, Chairman, Board of Governors of the Federal Reserve System
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10:15– 10:45
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Keynote Address
George Soros, Chairman, Soros Fund Management, LLC
Challenges to Financial Stability and The New World
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10:45 –11:00
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Coffee Break
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11:00 –12:30
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Session 1: What Lies Ahead - Exiting from Financial Sector Policies.
The financial crisis that began in the summer of 2007 compelled central banks to employ a wide range of measures including liquidity facilities, solvency support, and loan guarantees. Central banks have started withdrawing some of those measures as market conditions have improved, but the timeline and modalities for exiting are uncertain. Whether, when, and how to exit from crisis interventions remains an important issue for many central banks. Policymakers need to formulate and begin to implement strategies for exiting and the appropriate timing, pace, and mode of exiting from crisis-related policies depends on the state of the economy and the health of the financial system.
Session Chair: Karl Habermeier, Assistant Director, Monetray and Capital Markets
Department, International Monetray Fund
Speakers: Aerdt Houben, Director, De Nederlandse Bank (PPT)
Nigel Jenkinson, Adviser, Financial Stability Board, BIS (PPT)
Michael Pomerleano, Adviser, South Asia Finance and Private Sector
The World Bank (PPT)
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12:45 – 2:30
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Luncheon
Hosted by the Board of Governors of the Federal Reserve System; Terrace Level – Dining Room E
Keynote Speaker: Daniel K. Tarullo, Governor, Board of Governors of the Federal Reserve System
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2:30 – 4:00
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Session 2: Financial Innovation and Financial Regulation
Much of the blame for this crisis has fallen on financial products that were once heralded as instruments to distribute risks more widely in the system, but which in fact facilitated the concentration of risk. Is this the end of the line for securitization, credit derivatives and other derivative activities, or can they be revived in a safer mode while preserving their essential features? In securitization is the originate-to-distribute model extinct and if so to what effect? How will changes in the market and new regulation affect the core business of banking for on and off-balance sheet activities? How should countries that had just begun developing these markets respond? What are the lessons of this crisis for financial innovation in general?
Session Chair: Robert L. Sheehy, Deputy Director, Monetary and Capital Markets
Department, IMF
Speakers: Liao Min, Director- General, Executive Office, China Banking Regulatory
Commission (PPT)
Thomas R. Boemio, Sr. Project Manager, Division of Banking Supervision
and Regulation, Board of Governors of the Federal Reserve System (PPT)
Jason H. P. Kravitt, Partner, Mayer Brown LLP
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4:00 – 4:15
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Coffee Break
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4:15 – 5:45
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Session 3: Supervision in the Era of Moral Hazard –Has Too Big to Fail, Failed?
Among the more difficult issues facing policy makers is the treatment of institutions considered systemically important and often too big or too complex to fail. Should they be cut to size and rendered easier to manage, supervise and resolve, or should they be subject to regulatory surcharges for systemic risk? How will this impact competition policy? These issues become even more challenging when their operations are across borders. This session will discuss the challenges that systemically important institutions pose and how this difficult terrain is being navigated in the search for policy solutions.
Session Chair: Jan Brockmeijer, Deputy Director, Monetary and Capital Markets
Department, International Monetary Fund
Speakers: [Yandraduth Googoolye, First Deputy Governor, Bank of Mauritius]
Ron Feldman, Senior Vice President, Federal Reserve Bank of
Minneapolis (PPT)
Barry Johnston, former Assistant Director, Monetary and Capital
Markets Department, International Monetary Fund (PPT)
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5:45 – 6:15
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Group Photograph
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6:15 – 7:15
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Reception
Hosted by the Federal Reserve Board, Eccles Building Atrium
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Thursday, June 3, 2010 ;
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Venue: The International Monetary Fund
Headquarters 2 Building, Conference Halls 1 and 2
First Floor, Rooms 820 and 830
700 - 19th Street, N.W.
Washington, D.C.
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8:30 – 9:00
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Check-in and Light Breakfast
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9:00 – 9:30
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Keynote Address Day 2:
Speaker: Jose Viñals, Director and Financial Counsellor, MCM, IMF
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9:30 – 11:00
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Session 4: The New Capital and Liquidity Proposals – Implications for Banks and their Supervisors
The December 2009 Basel proposals aim to increase the quantity, quality and consistency of capital; introduce new capital conservation measures and countercyclical capital buffers. How will the quest for greater stability affect the industry’s prospects for growth? Will the new regulatory paradigm alter the risk-return equation in banking and change the way banks do business?
In addition, while harmonizing the definition of capital, making common equity the predominant component and phasing out Tier I hybrids, the issue of permitting contingent capital remains on the table. How should such instruments be treated in regulatory capital?
Session Chair: Norah M. Barger, Deputy Director, Division of Banking Supervision and
Regulation, Board of Governors of the Federal Reserve System
Speakers: Stefan Walter, Secretary General of the Basel Committee on
Bank Supervision
Sebnem Muratoglu, Senior Vice President, Risk Management, Akbank,
Turkey
Andrew Cross, Managing Director, Credit Suisse (PPT)
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11:00 - 11:15
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Coffee Break
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11:15 –12:45
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Session 5: Bank Supervision and Bank Governance
The current supervisory paradigm places a key responsibility upon bank boards with regard to setting risk appetite and overseeing risk management. How well have bank boards played the role expected of them in this regard? What can and should supervisors do to lay stronger emphasis on board responsibilities? Do we need new models of governance? How can the relationship between supervisors and bank boards be better structured to deliver on shared objectives of risk management?
Session Chair: William Rutledge, Executive Vice President, Federal Reserve Bank of New York
Speakers: Shuichi Uemura, Deputy Director-General, Financial Systems & Bank
Examination Department, Bank of Japan (PPT)
Thomas Huertas, Director, Financial Services Authority, United Kingdom
Alexey Simanovskiy, Director, Banking Regulation and Supervision
Department, Central Bank of the Russian Federation (PPT)
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12:45 – 2:15
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Luncheon
Hosted by the International Monetary Fund
Headquarters 1 Building - The Reception Hall
Second Floor, Room 307
700 - 19th Street, N.W.
Washington, D.C.
Keynote Speaker: Murilo Portugal, Deputy Managing Director, International Monetary Fund
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2:15 – 3:45
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Session 6: The Evolving Regulatory Landscape – Implications for Supervisors
Bank supervisors in many countries have just completed the long journey to the implementation of Basel II and are now faced with the implementation of the enhancements to the Basel II framework announced in July 2009 by year end. At the same time, they have to keep in mind that there are more changes in train. This session will discuss country experiences on how they are dealing with these changes and also preparing for what lies ahead.
Session Chair: Consolate Rusagara, Director, Financial Systems Department, Financial and Private Sector Development Vice-Presidency, The World Bank
Speakers: Teo Swee Lian, Deputy Managing Director, Monetary Authority of Singapore
Clive Briault, Toronto Centre, former Managing Director, Financial Services
Authority, United Kingdom (PPT)
Teo Swee Lian, Monetary Authority of Singapore (PPT)
Mira Eric Jovic, Vice Governor, National Bank of Serbia (PPT)
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3:45 – 4:00
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Coffee Break
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4:00 – 5:00
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Session 7: Breakout Groups
A. Cross Border Supervision – Collaborating with our Neighbors
The lessons of the financial crisis highlighted the importance of cross border supervision. The efficient response to a crisis requires collaboration between home and host supervisors. The FSB is taking a lead in developing a mechanism to increase collaboration between supervisors, and there is on-going discussion on efficient ways to exchange information and take coordinated action in response to the failure of a multi-national bank.
Moderator: [Jack P. Jennings, Associate Director, Division of Banking Supervision, Board of Governors of the Federal Reserve System]
B. The Systemic Risk Regulator – Who Should ‘Bell the Cat’, and How?
It is now widely acknowledged that monitoring systemic risk should be an integral part of the task of maintaining financial stability. This would require, among other things, the ability to extend the regulatory perimeter to hitherto unregulated or less regulated segments. Who should be tasked with this duty, and what tools should be provided to the responsible body or bodies?
Moderator: Katharine Seal, Monetary and Capital Markets Department, International Monetary Fund
C. Me and My Shadow -- Shadow Banking and Financial Stability
Many "shadow bank" institutions and vehicles have emerged in U.S. and European markets over the past 10 years, and have come to play an important role in providing credit across the global financial system. However, shadow institutions (ranging from finance companies to off-balance sheet entities such as SIVs) are not subject to the same safety and soundness regulations as banks. The system has been implicated as significantly contributing to the financial crisis. What is the origin of this system, how did it contribute to the crisis, and how are we addressing the issues surrounding this massive activity?
Moderator: Aquiles A. Almansi, Lead Financial Sector Specialist, Financial and Private Sector Development, The World Bank
Participants will choose from among these topics to discuss the challenges in their countries and to share experiences.
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5:00 – 6:00
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Session 8: Reports from Breakout Groups and General Discussion
Session Chairs: Ceyla Pazarbasioglu, Assistant Director, Financial Oversight, Monetary and Capital Markets Department, International Monetary Fund
David Scott, Program Manager, Financial Systems Department, World Bank
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6:30 – 8:00
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Dinner
Hosted by Vincenzo la Via, Chief Financial Officer, The World Bank
The World Bank, 12th Floor Gallery
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Friday, June 4, 2010
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Venue: World Bank
Main Complex Building, Executive Board Room
Room MC13-121
1818 H Street, N.W. (corner of 18th and H Streets)
Washington, D.C.
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8:30 - 9:00
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Light Breakfast
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9:00 – 9:30
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Keynote Address Day 3:
Speaker: Shamshad Akhtar, Vice President, Middle East and North Africa Region, The World Bank
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9:30 – 11:00
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Session 9: Addressing the ‘Will to Act’ Problem - Easier Said than Done?
Just rewriting the rule book will not help prevent such crises. It has been said that it was not just the absence of required regulation, but also the lack of will to act timely and forcefully that characterized some supervisory responses in the run-up to the crisis. Yet, in normal times supervisors are often seen as ‘crying wolf’ too often, or their actions viewed as impediments to growth. How should supervisors navigate this space of conflicting expectations of their role? What can be done to ensure the right incentives, resources, and accountability for sustained supervisory responses to be forthcoming in the future?
Session Chair: Jonathan Fiechter, Deputy Director, Monetary and Capital
Markets Department, International Monetary Fund
Speakers: Sir David Walker, Senior Adviser, Morgan Stanley
William A. Ryback, former Deputy Chief Executive, Hong Kong Monetary
Agency; former Special Advisor, Financial Supervisory Service, Korea
F. Edward Price, Assistant Superintendent, Office of the Superintendent
of Financial Institutions, Canada (PPT)
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11:00 –11:15
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Coffee Break
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11:15 –12:45
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Session 10: Financial Regulation and Financial Inclusion – Working Together or at Cross-purposes?
Policymakers in some emerging and developing economies are concerned that the focus on further strengthening financial regulation might adversely affect ongoing national efforts at increasing financial access. The G20 has set up a Financial Inclusion Expert Group to promote successful regulatory and policy approaches on financial access, financial literacy, and consumer protection. The Basel Committee too has stepped in with its recently released report on applying the core principles to microfinance activities. What are the key risks that are associated with these models of financial delivery, and how should supervisors ensure that materiality and proportionality are kept in mind while addressing potential risks in this sector?
Session Chair: Alexia Latortue, Consultative Group to Assist the Poor, World Bank
Speakers: Nestor Espenilla, Deputy Governor, Central Bank of the Philippines
(PPT)
Usha Thorat, Deputy Governor, Reserve Bank of India (PPT)
Lois Quinn, Senior Economist and Financial Systems Advisor, Office of
International Banking and Securities Markets, United States Department
of the Treasury
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