Events
Supervising the Platform Economy
June 1-3, 2021
Online
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The Virtual 20th International Conference 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 June 1-3, 2021.
The theme of the Conference was, “Supervising the Platform Economy: Recent Lessons Learned and Implications for the Financial Sector and Regulation.” The Conference aims were to:
- Provide an opportunity to reflect on a range of aspects in which digitalization is affecting the supervision and regulation of the financial sector;
- Consider how the pandemic has accelerated existing trends in supervision, affected banks’ business horizons and business models and operational resilience, and impacted on corporate stress; and
- Discuss whether regulation is keeping pace with the challenges to financial stability, including the perimeter of regulation.
Almost 400 senior officials from Central Banks and Supervisory Authorities at the level of Governor/Deputy Governor or Head/Deputy Head of Supervision, as well as high-level staff involved in policy formulation, attended this virtual conference.
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Tuesday, June 1, 2021
8:00am-10:00am (EST)
Opening Remarks: Jerome Powell, Chair, Board of Governors of the Federal Reserve
Session 1: What did we learn from COVID with respect to Digitization and Resilience?
Description: Taking stock. Has the pandemic changed the nature of supervision fundamentally? Data reporting, data analytics capacity, how to conduct offsite and onsite examinations, governance of institutions, and risk management are all topics that have come to the forefront. Firms and supervisors have had to address the challenges of remote working, of mixed remote and onsite working, of finding new methods to validate data and information and to secure their data. What are the key messages we cannot afford to miss?
Moderator:
Michael Gibson
Director, Supervision & Regulation Division, Board of Governors of the Federal Reserve System
Speakers:
Carolyn Rogers
Secretary General, Basel Committee on Banking Supervision
Ho Hern Shin
Deputy Managing Director, Financial Supervision, Monetary Authority of Singapore
Kuben Naidoo
Deputy Governor & CEO of the Prudential Authority, South African Reserve Bank
Chuchi Fonacier
Deputy Governor, Financial Supervision Sector Bangko Sentral ng Pilipinas
Wednesday, June 2, 20218:00am-10:00:am (EST)
Opening Remarks: Carmen Reinhart Vice-President and Chief Economist, World Bank
Session 2: Repercussions on banks will be felt as the health crisis recedes. COVID-19 has exacerbated corporate stress that was already high in many countries. What will banks find when supporting measures are removed?
Description: High corporate indebtedness was already a source of concern both in AE and EMDEs before the outbreak of COVID-19. Looking ahead, the financial sector may be facing a debt overhang scenario exacerbated by liquidity and solvency support measures taken during the health crisis. Public guarantees may have increased borrowers’ leverage, reinforcing the sovereign-bank-corporate nexus, and the quality of banks’ balance sheets may be obscured, for example, by loan moratoria measures. Authorities cannot keep support measures permanently in place and will need to remove measures in a balanced targeted manner to ensure continued financial stability. Banks will then have to assess a landscape that has been severely shaped by the pandemic. What will they find? What strategies will they need?
Moderator:
Jean Pesme
Global Director Finance, Competitiveness and Innovation, World Bank
Speakers:
Joao Manoel Pinho de Melo
Deputy Governor of Central Bank of Brazil
Elsie Addo Awadzi
Deputy Governor, Bank of Ghana
Sheila M’Mbijjewe
Deputy Governor, Central Bank of Kenya
Paolo Angelini
Deputy Governor Bank of Italy
Nicolas Veron
Senior Fellow, Bruegel, and Peterson Institute for International Economics
Thursday, June 3, 20218:00am-10:00am (EST)
Opening Remarks: Tobias Adrian, Financial Counsellor and Director, Monetary and Capital Markets, International Monetary Fund
Session 3: The Regulatory Perimeter and Our Approach to Regulation, do we need to adapt? Entity vs. Activity or Other Emerging Approaches?
Description: With new entrants, new activities, and new interfaces with clients, we have unconventional market entrants with potentially systemic impact. We need to discuss the regulatory perimeter. What are the benefits of regulation via entity or via activity or other emerging approaches? Are the current approaches to regulation and supervision fit-for-purpose in a shifting environment? With a financial system that is becoming less conventional, post-COVID, these challenges are likely to accelerate and become more complex.
Moderator:
Aditya Narain
Deputy Director, Monetary and Capital Market Department, International Monetary Fund
Speakers:
Lyndon Nelson
Deputy CEO, U.K. Prudential Regulatory Authority
Arthur Yuen
Deputy CEO, Hong Kong Monetary Authority
Shahmir Khaliq
Global Head of Treasury and Trade Solutions, Citigroup
Elisabeth Noble
Senior Policy Advisor, European Banking Authority
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