Financial Sector Supervision Report YE2016 Activities YE2017 Pursuits

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1 Financial Sector Supervision Report YE2016 Activities YE2017 Pursuits Pierre Seguin Financial Sector Banking Supervision Advisor International Monetary Fund Pacific Financial Technical Assistance Centre

2 The primary focus continues to be the strengthening of prudential supervision of banks in member countries.

3 2016 Program On-site examination program Advanced technical workshops Credit Union program Legal Frameworks Association of Financial Supervisors of Pacific Countries <AFSPC> Outreach

4 On-site examination program Preparedness Technical workshop On-site examination mentorship Report writing Program delivered by: PFTAC Resident Technical Advisor with support from Short Term Experts assigned to specific countries. Participating countries Samoa Tonga - Timor-Leste - Palau - FSM,

5 Advanced Technical workshops Consolidated supervision of conglomerates Bank of Papua New Guinea

6 Legislative support (IMF Legal Department) 3- Workshops; drafting Credit Union Act Northern Region; Palau FSM - Marshall Is Fiji Samoa Tonga Vanuatu Solomon Islands Supervisory Oversight Training Palau FSM Samoa Solomon Islands - Fiji - Kiribati Credit Union Capacity Building Palau FSM Samoa Solomon Islands Fiji - Kiribati Plan later this year or early 2017 Tonga, Timor-Leste, Vanuatu, PNG

7 PFTAC secured the support of the IMF Legal Department to provide technical advise towards legislative reform: Financial Institutions Act Banking Act Credit Union Act Fiji Tonga Samoa Palau FSM Marshall Is Vanuatu Solomon Is Tuvalu and Timor-Leste. Revision and Drafting of Prudential Statements, Regulations and Guidelines Tonga

8 2016 host: Central Bank of Solomon Islands Theme How to perform the examination of the board of Directors of a bank: performance and governance. Workshop IMF Technical Assistance Needs Assessment Questionnaire. Based on the Basel Core Principles of Banking Supervision. Annual meeting

9 PFTAC Technical assistance will focus on strengthening financial sector supervision by focusing its activities on building the on-site examination capacity of supervisors and establishing a modern oversight credit union frameworks.

10 Last year PFTAC introduced a comprehensive on-site examination program which will continue in 2017 and beyond. Participating Central Banks will undertake to perform at least two on-site examination per year under the tutorship of PFTAC experts. The program technical delivery will be supplemented with the use of short term experts. Next

11 PFTAC will work with the bank supervisors to ensure that examinations are conducted in accordance with sound business and financial practices. Introduction of concepts related to Risk Based Banking Supervisions Graduation program to more advanced examination concepts PFTAC will offer technical workshops on advanced topics like consolidated supervision or targeted sectors like insurance and pension 3

12 Greater focus on developing or ensuring that authorities have up to date information. Examination manuals updating Supervisory Guidance Templates tools The Examination program will ensure that each mission is followed by recommendations as to improvements to current practices.

13 Modernized legal framework Credit union capacity building Standard financial statements Statutory reporting Oversight regime How to adequately perform the supervision of the sector

14 PFTAC will provide IMF Legal Department assistance to support reform and ensure supervisors have adequate legal powers and the ability to exercise them.

15 Secretariat for the AFSPC 2016 annual meeting in Palau (June) Theme: Natural Disaster preparedness Governors annual meeting Credit Union Annual Pacific Congress Financial Inclusion network

16 Based on current budget predictions, PFTAC is proposing to deliver the following each year. PFTAC annual program Resident Technical advisor: Short term experts: Northern Region workshop Southern Region Workshop Legal related Workshop Annual Meeting AFSPC 8 Missions 8 missions One One One One

17 COMMENTS REMARKS OBSERVATIONS PIERRE SEGUIN Financial Sector Supervision Advisor IMF PFTAC

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