The World Bank Financial Sector Advisory Centre (FinSAC) supports client countries in emerging Europe and Central Asia on issues related to crisis management, micro-prudential supervision, banking resolution and climate related financial risks. The continued war in Ukraine and an evolving conflict in Middle East are keeping inflationary pressures and economic uncertainty on high levels, threatening financial stability across the region. Against this backdrop, financial sector regulators are reconsidering their reform priorities which we suggest discussing together during FinSAC’s upcoming Annual Supervisory Conference.
We will discuss the state of play of the regulatory and supervisory frameworks in ECA region, focusing on issues like SREP implementation, Pillar 2 capital requirements or regulatory approaches to emerging risks, such as interest rate risk in the banking book. For credit risk assessment the collateral valuation remains to be a key factor which we plan to discuss during the conference considering the context of negative tendencies in some real estate markets. Building upon experience of recent bank failures in US and Europe, we will explore the issue of deposit behaviors and the liquidity risks faced by deposit insurers during financial turmoil, while elaborating on challenges that authorities face during operationalization of a BRRD aligned resolution frameworks and the effects of the proposed CMDI reform on FinSAC client countries. Lastly, we will continue discussions on climate related risks covering both the financial stability and supervisory aspects of those risks and prioritizing the authorities’ actions in client countries for next years.
The final program of the event will be circulated closer to the date of the conference. If you have any questions, suggestions, or special requests regarding the event, please do not hesitate to contact Mr. Karlis Bauze at kbauze@worldbank.org.
We look forward to welcoming your representative(s) at the conference.