FINANCIAL SURVEILLANCE STRATEGY
ONE YEAR PROGRESS REPORT PRESENTATION
Prepared under the supervision of Ratna Sahay (MCM) and David
Marston (SPR) by James Morsink (lead), Allison Holland, Srobona Mitra,
Isabella Ribeiro (all MCM), Sean Craig, and Gavin Gray (both SPR).
September 12, 2013
FINANCIAL SURVEILLANCE
STRATEGY
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Pr
SCOPE OF PRESENTATION
Three Pillars
One-Year Progress
Work Ahead
3
Three Pillars
4
FSS: THREE PILLARS
Foster
greater
Enhance
Improve risk
integration
dialogue
identification
of products &
with
&
policy analysis instruments
stakeholders
5
One-Year Progress
6
PILLAR I
Foster
greater
Enhance
Improve risk
integration
dialogue
identification
of products &
with
&
policy analysis instruments
stakeholders
7
Monetary
Policy
Macropru
Policy
Crossborder
Linkages
Financial
Deepening
SovereignBank
Feedback
Loops
Assessing
Regulatory
Reforms
8
PILLAR I
PROGRESS
ANALYSIS
Capital
Flows
2011
2013
2011-2013
PILLAR I
EXAMPLE I
MACROPRUDENTIAL POLICY
SERIES OF WORK
AN
ORGANIZING
FRAMEWORK
9
ACHIEVEMENTS
Systemic Risk
Identification
Policy Tools
Institutional
Arrangements
Policy Interactions
Multilateral
Aspects
Guidance Note
1
Assessment of
global progress:
Board briefings
7
Z
n
f
Impact on other
economies
Wor
k
ing
w
FSB ith
Impact on
structure: SDN,
GFSR
10
PILLAR I
EXAMPLE II
n
ASSESSING REGULATORY REFORMS
PILLAR I
EXAMPLE III
MONETARY POLICY
UNPRECEDENTED
POLICY ACTION
Financial
Stability
Implication
[GFSR, SDN]
Global Impact
[Spillover Reports,
UMP2]
Experiences
&
Prospects
[UMP1]
11
Future
Frameworks
PILLAR II
Foster
greater
Enhance
Improve risk
integration
dialogue
identification
of products &
with
&
policy analysis instruments
stakeholders
12
Financial
Surveillance
in A4
Cluster Level
Surveillance
Non S25
FSAPs
Review
13
Integrated
Risk
PILLAR II
PROGRESS
PRODUCTS & INSTRUMENTS
MACROFINANCIAL LINKAGES & CLARITY
100%
Percent of A4 Reports* Including:
91%
81%
80%
Policy advice
clearly
justified
60%
40%
Clear
bottom line
on financial
sector risks
41%
34%
20%
PILLAR II
EXAMPLE II
ARTICLE IVs:
Macro to
Financial
Financial
to Macro
0%
*Based on 95 reports from Dec 2012 to Jul 2013
14
COVERAGE OF FINANCIAL SECTOR ISSUES
Percent of A4 Reports Assessing
100%
88%
75%
72%
Follow-up on
FSAP*
50%
Regulation &
Supervision
PILLAR II
EXAMPLE II
ARTICLE IVs:
89%
Key
Vulnerabilities
42%
25%
Cross-border
Spillovers
0%
*Based on FSAPs in the last 5 years
15
PILLAR III
Foster
greater
Enhance
Improve risk
integration
dialogue
identification
of products &
with
&
policy analysis instruments
stakeholders
16
Deepen
collaboration
with the WB
Address
data gaps
Serve as
global
facilitator
Serve as
global risk
advisor
17
PILLAR III
PROGRESS
ACTIVE ENGAGEMENT
Contribute
to reg reform
agenda
PILLAR III
EXAMPLE I
HIGH LEVEL EVENTS
SIFI
Financial
Stability &
Systemic
Risk
Rethinking
Macro II
Structural
Banking
Reforms
Taxing the
Financial
Sector
18
Future of
Asia’s
Finance
Board Paper:
Identified
Data
Deficiencies
Global Flow of
Funds Database
I-to-I
Reporting
Template for
Global Financial
Institutions
PILLAR III
EXAMPLE II
DATA GAPS
Data Gaps
Initiative
Implementation
19
Work Ahead
20
SovereignBank
Feedback
Loops
Financial
Deepening
Monetary
Policy:
Future
Frameworks
PILLAR I
WORK AHEAD
ANALYSIS
Interconn
&
Spillover
Work
21
Using
guidance
notes for A4s
Leveraging
tools &
internal
networks
Cluster level
surveillance
Integrated
Risk
22
Multilateral
products
messages
FSAPs for
non S25
countries
PILLAR II
WORK AHEAD
PRODUCTS
INCREASE SUPPORT
INTERCONNECTEDNESS
Macroprudential
Frameworks
Collaboration with
Central Banks &
the BIS
HIGH LEVEL EVENTS
DATA GAPS
Macropru
Spillovers/UMP
Accessing Data
23
PILLAR III
WORK AHEAD
ACTIVE ENGAGEMENT
IMPLEMENTATION CHALLENGES
Pillar I
Integrated Macrofinancial
Framework
Pillar II
Resources & Skills
Gaps
Pillar III
Managing Policy
Spillovers