WB helps BB build defence against financial crisis
Saturday, 16 January 2010
FE Report
The Bangladesh Bank has undertaken an exclusive programme to shore up its regulatory system in a move to better protect the banking industry from the potential financial crisis, officials said Friday.
Supported by the World Bank, the central bank has started implementing the plan for crisis preparedness and reviewing the defence systems as devised by central banks around the world, they said.
A World Bank official said his bank was coordinating with the central bank and sent 10 banking regulators to Canada Friday for a five-day course tailored to the needs of the banking watchdog.
Bangladesh's banking sector has received kudos for its resilience in the face of the global financial crisis that pummeled the international financial system. Banks and stock markets in much of the developed and emerging economies crashed in late 2007 as a result of the crisis.
"We were absolutely unscathed. But that resilience has to be turned into a lasting strength," a central bank official said.
"The world has much to learn from Bangladesh's experience. And we're supporting the country's bold move to strengthen its defence against future calamity," said Shah Nur Quayyum, an official at the World Bank who is leading the team.
"The training programme was customised for Bangladeshi central bankers," he added.
A BB official said the course was part of the long-term programme and would be held at Toronto Centre, a Canadian consultancy with worldwide operations.
Titled "preparing for the new financial regulatory regime," the course will begin on January 17 and conclude on January 22.
The Toronto-based centre trains up financial regulators from around the world to help improve their agency's crisis preparedness and promote change that will lead to a more "sound and inclusive" financial system.
It offers programmes in a highly interactive setting using case studies, presentations and workshops, according to its website.
At the request of the World Bank, the centre has developed a country-specific programme for Bangladeshi regulators to sharpen their leadership and technical skills in order to address future challenges.
Top financial experts and central bankers from Canada, UK and Korea will conduct the workshop led by Ruth De Krivoy, Vice Chair, Toronto Centre, and former head of Central Bank of Venezuela.
Officials said further discussion would be held on the causes of the financial crisis including how and why some regulators failed to detect, prepare for and manage the crisis, while others were more effective.
There would be a discussion on implications of the crisis for Bangladesh and lessons to be learned from the crisis, Mr Quayyum said.
It will brainstorm on the G20 initiatives to "crisis-proof'" the global financial system, including an evaluation of the initiatives and their potential effectiveness and suggestions for what more needs to be done.
A discussion will be held on tools available to central banks for managing a systemic crisis, liquidity management frameworks, quantitative easing, lender-of-last resort provisions and a central banking perspective on resolution challenges and strategies, according to a background paper for the course.
There would be session dedicated to strengthening capital rules for banks, including an evaluation of strengths and weaknesses of the Basel II capital framework and the changes now under discussion and suggestions for practical, country-specific approaches to Basel II implementation.
Paul Jenkins, Senior Deputy Governor, Canadian central bank, will be the dinner speaker and present a speech on Canada's Financial Sector Responses to the Global Crisis.
A session on improving financial supervision, including a discussion of why supervision in many countries is inadequate, and the benefits and pitfalls of risk-based supervision will be presented by Naren Sheth, former Senior Director of OSFI.
Michael Hafeman, Naren Sheth, Miquel Djikman will lead the discussion on the state of supervision in Bangladesh and preconditions for implementing risk-based supervision.
The Bangladesh Bank has undertaken an exclusive programme to shore up its regulatory system in a move to better protect the banking industry from the potential financial crisis, officials said Friday.
Supported by the World Bank, the central bank has started implementing the plan for crisis preparedness and reviewing the defence systems as devised by central banks around the world, they said.
A World Bank official said his bank was coordinating with the central bank and sent 10 banking regulators to Canada Friday for a five-day course tailored to the needs of the banking watchdog.
Bangladesh's banking sector has received kudos for its resilience in the face of the global financial crisis that pummeled the international financial system. Banks and stock markets in much of the developed and emerging economies crashed in late 2007 as a result of the crisis.
"We were absolutely unscathed. But that resilience has to be turned into a lasting strength," a central bank official said.
"The world has much to learn from Bangladesh's experience. And we're supporting the country's bold move to strengthen its defence against future calamity," said Shah Nur Quayyum, an official at the World Bank who is leading the team.
"The training programme was customised for Bangladeshi central bankers," he added.
A BB official said the course was part of the long-term programme and would be held at Toronto Centre, a Canadian consultancy with worldwide operations.
Titled "preparing for the new financial regulatory regime," the course will begin on January 17 and conclude on January 22.
The Toronto-based centre trains up financial regulators from around the world to help improve their agency's crisis preparedness and promote change that will lead to a more "sound and inclusive" financial system.
It offers programmes in a highly interactive setting using case studies, presentations and workshops, according to its website.
At the request of the World Bank, the centre has developed a country-specific programme for Bangladeshi regulators to sharpen their leadership and technical skills in order to address future challenges.
Top financial experts and central bankers from Canada, UK and Korea will conduct the workshop led by Ruth De Krivoy, Vice Chair, Toronto Centre, and former head of Central Bank of Venezuela.
Officials said further discussion would be held on the causes of the financial crisis including how and why some regulators failed to detect, prepare for and manage the crisis, while others were more effective.
There would be a discussion on implications of the crisis for Bangladesh and lessons to be learned from the crisis, Mr Quayyum said.
It will brainstorm on the G20 initiatives to "crisis-proof'" the global financial system, including an evaluation of the initiatives and their potential effectiveness and suggestions for what more needs to be done.
A discussion will be held on tools available to central banks for managing a systemic crisis, liquidity management frameworks, quantitative easing, lender-of-last resort provisions and a central banking perspective on resolution challenges and strategies, according to a background paper for the course.
There would be session dedicated to strengthening capital rules for banks, including an evaluation of strengths and weaknesses of the Basel II capital framework and the changes now under discussion and suggestions for practical, country-specific approaches to Basel II implementation.
Paul Jenkins, Senior Deputy Governor, Canadian central bank, will be the dinner speaker and present a speech on Canada's Financial Sector Responses to the Global Crisis.
A session on improving financial supervision, including a discussion of why supervision in many countries is inadequate, and the benefits and pitfalls of risk-based supervision will be presented by Naren Sheth, former Senior Director of OSFI.
Michael Hafeman, Naren Sheth, Miquel Djikman will lead the discussion on the state of supervision in Bangladesh and preconditions for implementing risk-based supervision.