The Virtual Seminar on Policy Challenges for the Financial Sector organized jointly by the World Bank Group, the International Monetary Fund, and the Board of Governors of the Federal Reserve System, was held from November 16-18, 2020.
The central theme of the seminar was “Supervisory and Regulatory Priorities in a Post Pandemic World”. The objectives of the seminar were to:
Rich discussions were held to consider these priorities through the lenses of climate related financial risks, the fintech revolution and the unceasing need for robust operational resilience in our financial institutions.
Almost 300 senior officials from central banks and supervisory authorities at the level of Central Bank Governor/Deputy Governor or Head/Deputy Head of Supervision, as well as high-level staff involved in policy formulation attended this Virtual Seminar.
Monday, November 16, 2020
8:00am – 10:00am (EST)
Session 1: Perspectives on the impact of Covid-19--the Risks, Vulnerabilities and Challenges to Global Financial Stability and the Banking System
Description: The Covid-19 Pandemic has had an unprecedented impact on the global economy and financial markets and authorities have responded in-kind with measures to address the crisis. What are the ongoing risks and vulnerabilities posed by Covid-19 to global financial stability and the banking system? What has the impact of the pandemic been and what do we perceive of the landscape looking ahead? How effective have policy and supervisory measures been in supporting banking system resiliency? In light of the uncertain economic outlook, are additional measures needed to preserve and/or strengthen the sector? If so, what measures are needed and when?
Moderator: | Sabine Lautenschläger | Former Board Member of the European Central Bank |
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Speakers: | Tobias Adrian | Financial Counsellor, Director, Monetary & Capital Markets, IMF |
| Michael Gibson | Director, Supervision & Regulation, Board of Governors of the Federal Reserve System |
| Carmen Reinhart | Vice-President and Chief Economist, World Bank |
| Carolyn Rogers | Secretary General, Basel Committee on Banking Supervision |
| Sri Mulyani | Minister of Finance, Indonesia |
| Gamal Negm | Deputy Governor Central Bank of Egypt |
Tuesday, November 17, 2020
8:00am – 9:00am (EST)
Session 2: Emerging from the pandemic: a green recovery?
Description: Climate change is increasingly recognized as important sources of risk and opportunity for the financial sector. Physical risks stemming from natural disasters could exacerbate credit and operational losses, endanger the business continuity, and amplify liquidity risk. Transition risks related to significant economic adjustment costs to combat climate change might make banks more vulnerable to market risk, by impairing the value of the most climate sensitive financial instruments. Climate change may challenge some business models. However, climate change might also open up investment opportunities: market participants might mobilize capital for green objectives (climate bonds initiative, green mortgages), and developing economies could seize opportunities to augment their capital market structures. In the wake of the pandemic, will we see a “greening of the recovery” as awareness of the implications of climate change is increasingly factored into our responses? Will climate-aware financing become a presiding theme for the next decade? What’s need to be done in terms for example of taxonomy and disclosure?
Moderator: | Jean Pesme | Practice Manager, Financial Stability and Integrity, World Bank
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Speakers: | Chuchi Fonacier | Deputy Governor, Philippines Central Bank |
| Otavio Damaso | Deputy Governor, Central Bank of Brazil |
| Margerita Delgado | Deputy Governor, Banco de Espana |
| Frank Elderson | Chairman, Network for Greening the Financial System |
9:30am – 10:30am (EST)
Session 3: Emerging from the pandemic: a digital recovery?
Description: We expect the crisis to have longer-term implications for the structure of the financial system, but the nature of the changes is harder to determine. Will the fintech revolution act as a catalyst? The pandemic has accelerated the move towards digitalization and automation in financial services. Offering contactless and cost-effective financial services to a wide customer base, are the Fintechs moving into the place of long-standing providers, or will innovative new services be complementary and ancillary to existing services? What more could be done in terms of public policy to further foster the roll out of digital financial strategy? How could we reach unserved or underserved areas (remote rural locations, migrants and marginalized group, unbanked etc.)? How should regulation evolve to ensure that financial innovation occurs in an environment cognizant of risks (AML/CFT, data privacy, cyber risk)?
Moderator: | Nigel Jenkinson | Assistant Director, Monetary & Capital Markets, IMF |
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Speakers: | Patrick Njoroge | Governor, Central Bank of Kenya |
| Abhay Prasad Hota | Former MD and CEO of National Payments Corporation of India, and Chief General Manager of the Reserve Bank of India |
| Maha Bahou | CEO, Jordan Payment and Clearing Company |
| Santiago Fernandez de Lis | Head of Regulatory Department, BBVA |
| Irena Gecas-McCarthy | Principal, Deloitte |
Wednesday, November 18, 2020
8:30am-10:00am (EST)
Session 4: Operational Resiliency—building for the future.
Description Covid-19 has tested banks’ operational resilience with regards to business continuity plans, remote working arrangements, the growing reliance on third-party service providers and cybersecurity. Is our financial system devoting enough effort to ensuring its own resilience in order to survive? From the big picture challenges, to the granular design of principles and frameworks to support operational soundness and resilience, are there lessons from the pandemic and are there issues for the future? What about other emerging risks to the operating environment, not least emerging cyber risks and financial risks related to changes in the climate?
Moderator: | Art Lindo | Deputy Director, Supervision & Regulation Division, Board of Governors of the Federal Reserve System |
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Speakers: | Nick Strange | Senior Technical Advisor, Operational Risk & Resilience, Supervisory Risk Specialists, Bank of England |
| Len Botkin | Head of Global Corporate Services, Bank of America |
| Algirde Pipikaite | Center for Cybersecurity, World Economic Forum |
| Subas Roy | Partner, Oliver Wyman |
| Tan Yeow Seng
| Executive Director and Chief Cyber Security Officer, Monetary Authority of Singapore |