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Regulation and Supervision
   
 
Development that benefits every sector of society requires a sound and stable banking system.  Effective regulation of banks and non-bank financial institutions can expand access to finance, protect consumers from predatory practices and contribute to both national and international stability.  To be effective in maintaining a sound banking sector, central banks and other regulatory authorities must be strong, independent, and capable of overseeing and enforcing compliance in financial institutions.

FSVC Supervisory & Regulatory Experience
Key Indicators: 1999-2012
Projects Completed 387
Number of Countries Served 26
Individuals Trained 5,859
Pro Bono Hours Delivered 48,135

Countries Served:

Albania, Algeria, Bosnia, China, Croatia, Czech Republic, Ecuador, Egypt, Georgia, India, Indonesia, Iraq, Jordan, Libya, Macedonia, Malawi, Moldova, Morocco, Philippines, Poland, Romania, Russia, Slovakia, Ukraine, Vietnam, and Yemen.

Types of Activities:

-  On-site consultations to enhance supervision department policies and
    procedures;
-  Assessment of compliance with Basel I and II Core Principles;
-  On-the-job training in examination procedures and report preparation and dissemination;
-  Study tours to other supervisory agencies;
-  Specialized training in risk management;
-  Consultations on information technology examinations of commercial banks;
-  Training in accounting standards;
-  Expert review of laws and regulations; and
-  Regional conferences focused on international best practices.


Our Accomplishments:

Russia – Central Bank of Russia (2001-Present):
In FSVC’s flagship program, Volunteers have transformed the Central Bank of Russia’s (CBR) approach to risk-based supervision.  In response to the recent financial crisis, FSVC Volunteers provided an in-depth commentary on the U.S. Federal Reserve System’s supervision of bank internal controls and risk management. FSVC also provided the CBR with a commentary that gave a U.S. perspective
on the recently proposed Basel Committee on Bank Supervision recommendations for stricter capital and liquidity requirements.

Iraq – Central Bank of Iraq (2009-Present):
FSVC’s post-conflict assistance to the Central Bank of Iraq (CBI) encompasses every aspect of bank supervision, from staffing to training, organizational and even structural needs.  FSVC Volunteers first conducted an assessment of the CBI’s Banking Supervision Department and made recommendations to reorganize the department and staff the department.  Subsequent trainings in this relatively new program have already resulted in the establishment of an IT Supervision department. 


FSVC Volunteer Bonnie Reneau (pictured standing) trains bank supervisors from the Reserve Bank of Malawi
Malawi – Reserve Bank of Malawi (2007-Present):
FSVC’s assistance to the Reserve Bank of Malawi (RBM) has resulted in a significant increase in the staff of Bank Supervision Department (BSD).  In the program’s first two years, FSVC trained the BSD and Bankers’ Association of Malawi on financial institution analysis, stress testing, credit risk, Basel II, and anti-money laundering.  Accomplishments thus far include the adoption of Basel II capital requirements for commercial banks, which in time will increase confidence in Malawi’s banking sector while protecting consumers, and result in an increased supervisory focus on other financial products such as insurance and microfinance.