this project was funded by the european union
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BANK SUPERVISION AND ACCOUNTING. Bank Supervision and Accounting An overview of Project results and possible recommendations. XVth International 9 June 2006 Richard Gregson Banking Congress . This project was funded by the European Union. - PowerPoint PPT PresentationTRANSCRIPT
This project was funded by the European Union
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BANK SUPERVISION AND ACCOUNTING
Bank Supervision and Accounting
An overview of Project results and
possible recommendations
XVth International 9 June 2006 Richard Gregson Banking Congress
MAIN CHARACTERISTICS OF THE PROJECT
Country – beneficiary: Russian Federation; Partner of the Project – Central Bank of the Russian Federation; Funded by: European Union; Project Duration – 2 years to September 2005 (extended until 31 December 2005).
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
THE PROJECT CONSORTIUM
•PricewaterhouseCoopers•The Institute of Chartered Accountants in Ireland•Credit Agricole Consultants
THE PROJECT BENEFICIARY
The Central Bank of the Russian Federation, specifically, the Banking Regulation and Supervision Department
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
PROJECT OBJECTIVES
To facilitate further improvement of efficiency and
effectiveness of supervision over the activities of financial
institutions and creation of a better basis for the
development of the banking sector in Russia.
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
PROJECT COMPONENTS
• Application of IFRS Approaches in Prudential Reporting
• Supervision and prudential reporting
• Pilot banks
• Awareness and Training
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
KEY RESULTS
1. Development of an new architecture for prudential reporting and supervision methodology
2. Development of new and revised reporting forms and subsequent testing in pilot banks
3. Provision of recommendations for key legislative changes required to bring the legislative base of banking supervision in Russia into conformity with international practice
4. Provision of workshops, study tours and consultations to Central Bank supervision employees
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
SOME KEY RECOMMENDATIONS
• Restructure the architecture of the reports submitted by banks
• Move to risk-focused supervision
• Improve infrastructure within the function of supervision
• Enhance the approach to analyzing the reports submitted to the CBRF
• Improve the level of coordination between on and off-site supervision
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
SOME KEY RECOMMENDATIONS
• Restructure the architecture of the reports submitted by banks
• Move to risk-focused supervision
• Improve infrastructure within the function of supervision
• Enhance the approach to analyzing the reports submitted to the CBRF
• Improve the level of coordination between on and off-site supervision
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
PRINCIPLES OF PROPOSED NEW ARCHITECTURE
1. IFRS basis
2. Prudential specificities
3. International practice
4. Russian environment
5. Differentiated reporting
6. Dynamic information
7. Periodicity of reports
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
THE BASIS OF THE PROPOSED ARCHITECTURE
1. Activity
2. Risks
3. Financial Structure
4. Profitability
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress
WHERE TO NEXT?
• Analysis and implementation
• Phased convergence with the principles of Basle II by 2009/ 2010
BANK SUPERVISION AND ACCOUNTING
XVth International 9 June 2006 Richard Gregson Banking Congress