Strengthening Financial Supervision and Institutions Finance Forum 2004

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Strengthening Financial Supervision and
InstitutionsFinance Forum 2004

• John Pollner

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Overview
Financial supervision needs to move beyond the
regulatory and legal reforms aspects, and
focus on tangible working tools and analytical
approaches for super- visors to work with.
Financial authorities also need to count
on modern technological and operating models to
support the normative framework. We examine
these aspects and the Banks role in promoting
this.
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Outline of Session

• Introduction of themes
• Operational applications
• Supervision of consolidated groups
• Bank risk management and Basel II
• Credit risk systems
• Brazil project case

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Emerging New Project Applications

• The investment loan change from pure TA to
  tangible application oriented products
• Automation and computerization of central bank
  credit bureaus (Brazil presentation following).
• Payment systems technology upgrades (custom made
  for each country central bank administ.).
• Securities settlement systems, and
  dematerialization of securities and electronic
  book entry systems.

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Emerging applications (cont.)
Implementation of web based systems for
remitting regula- tory reports and financial
statements to supervisory authorities.

• Computer based actuarial models and analysis
  software for use by supervisors in life and
  property industries.
• Standardization of Credit rating models and
  methodologies for SB and market.

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Emerging applications (cont.)

• Bank value at risk models for estimating credit
  and market risk provisioning software/data.
• Methodologies and systems for addressing
  consolidated financial and economic group risks
  (see next presentation).
• Adaptation to Basel II models (see subsequent
  presentation).

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Consolidated Group RisksImplementing a new
analytical Framework
BANK
Credit
COMPANY
Capital
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Consolidated Risks (cont.)
Shareholder Co. 1

• Holding Co.

Shareholder Co. 2
Bank
Shareholder Co. 3
Shareholder Co. 4