To maintain a sound and well-regulated financial sector, there is a need for strong and independent central banks and supervisory and regulatory agencies capable of overseeing and enforcing compliance in banks and non-bank financial institutions. FSVC’s supervisory and regulatory programs aim to assist counterparts from central banks, financial intelligence units, insurance regulatory agencies and capital markets supervisory authorities in their efforts to develop the appropriate legal and policy frameworks to foster efficient and competitive financial systems.
FSVC programs have helped supervisory and regulatory institutions apply risk-based supervision techniques to assess financial institutions’ internal policies and processes to identify, measure, monitor and control risks; conduct transaction testing to determine a financial institution’s compliance with laws and regulations; and monitor banks’ financial developments on an ongoing basis. Initiatives also address consolidated bank supervision, risk management, corporate governance and anti-money laundering issues, among other topics.
Key FSVC indicators from 1990 to present:
- Helped the East African Community create a Regional Cross-Border Supervision Manual, making the insurance sector the first financial sub-sector in the EAC to develop a harmonized supervision manual.
- FSVC assisted the Bank of Algeria in developing bank examination manuals that helped formalize and standardize bank supervisory analysis for the first time.
- FSVC helped the Central Bank of Jordan, the Jordan Deposit Insurance Corporation and the Jordanian Association of Banks to strengthen their operations and develop staff capacity. This resulted in the establishment of a seven-member Basel II Steering Committee to develop a clear approach to Basel II for the central bank and commercial banks.
- In Albania, FSVC conducted an Actuarial Training and Certification Program (ATCP) with the Albanian Financial Supervisory Authority and the Albanian Actuarial Association As a result, the ATCP provided participants with an actuarial education in line with international standards, all 14 of the participants graduated from the program as certified actuaries and are now providing actuarial services to regulatory and commercial institutions in Albania.