Financial Regulation and Supervision: Design and Implementation

Financial Regulation and Supervision: Design and Implementation

Financial Regulation and Supervision: Design and Implementation

Course Chair: Maria Nieto, Advisor in the Directorate of Financial Stability, Regulation and Resolution, Bank of Spain


Day 1, 10th September - The Impact of Disruptive Forces

Evolving supervisory landscape: key dynamics, challenges and opportunities
Patricia Jackson
, Adviser on Risk Governance, Ernst and Young and former Head of the Financial Industry and Regulation Division, Bank of England

  • State of the start for national and international regulatory and supervisory regimes
  • Key political and economic forces shaping the work of regulators and supervisors
  • Unavoidable risks, critical challenges and emerging opportunities
  • Discussion: how to supervise technological innovation?

BigTech: the new focus of regulatory attention
Eva Hüpkes
, Adviser, Regulatory Policy and Cooperation, Financial Stability Board

  • Characteristic features of the BigTech sector and entities
  • Impact and implications of BigTech for the financial services and technology providers
  • Overview of local and cross-jurisdictional efforts focused on regulation and supervision of BigTech
  • Discussion: who are the BigTechs in the delegates’ home jurisdictions?

Climate risks as an emerging source of systemic instability
Maria Nieto
, Advisor in the Directorate of Financial Stability, Regulation and Resolution, Bank of Spain

  • Implications of climate change for the stability of financial systems
  • Overview of key transition, physical and liability risks
  • Role of financial policy and regulation in effective climate risk mitigation
  • Hands-on exercise: application of supervisory tools and prudential responses

Day 2, 11th September - Extending the Supervisory Envelope

Financial regulation and supervision in the era of disruptive innovation
Katherine Tilghman Hill
, Assistant Vice President, Supervisory Policy Department, Federal Reserve Bank of New York

  • Impact of disruptive innovation on financial services industry
  • Implications for regulatory processes and supervisory cycles
  • Examples of approaches and frameworks helping to find the right balance between encouraging innovation and consumer protection
  • Discussion: how do regulators and supervisors need to change to make the most of FinTech? 

Making the most of RegTech & SupTech: a user’s guide
Beju Shah
, Head of Data Collection and Publication, Bank of England

  • Examples of regulatory and supervisory applications of Blockchain (and DLT), Big Data analytics, Machine Learning and Cloud Computing
  • Opportunities and challenges of APIs (Application Programming Interface) and new software platforms for financial stability and systemic risk analysis
  • Implications for central banks’ resourcing and institutional organisation
  • The role of cooperation and coordination with the private sector

Crypto assets and CBDCs: implications for central bankers and supervisors
Leo Mucheriwa
, Assistant Director, Bermuda Monetary Authority

  • Differences and overlaps between central bank digital currencies and privately issued crypto assets
  • Tips for effectively managing financial stability implications of ‘Bitcoins’ on both local and systemic levels
  • Impact of central bank digital currencies on financial services providers
  • Discussion: how to manage cross-country flows of digital money?

Basel Accord: latest developments and their impact on financial supervisory regimes
Katherine Tilghman Hill
, Assistant Vice President, Supervisory Policy Department, Federal Reserve Bank of New York

  • Evolution and the state of the art of the Basel standards 
  • Overview of the latest revisions to the approaches for credit risk, market risk and operational risk
  • Implementation and potential impact on banks’ risk-weighted assets and capital
  • Discussion: what are the implications of the Basel standards in the delegates’ home jurisdictions?

Coordinating regulatory and supervisory policies
John Fell
, Deputy Director General, Macro-prudential Policy and Financial Stability, European Central Bank

  • Tips for effective coordination and calibration of regulatory and supervisory policy
  • Implications for institutional arrangements and organisation
  • Examples of mechanisms for a continuous exchange of information for conflict resolution
  • Case study: financial supervision and regulation in the euro area


Day 3, 12th September - Updating the Supervisory Toolkit

Core elements of successful stress-testing frameworks
Karsten Gerdrup
, Director, Monetary Policy and Financial Stability Modelling, Norges Bank

  • The evolving role of systemic stress-testing in financial stability
  • Key features of effective stress-testing models and frameworks
  • Opportunities and challenges of disruptive technological innovation
  • Case study: stress-testing of the banking system in Norway

Addressing cyber risk through a cross-industry guidance
Tom Keating, Senior Adviser and Head of Operational Risk Policy Group, Central Bank of Ireland (invited)

  • Overview of key risks for infrastructures based on computer systems and digital information
  • Examples of intelligence-led exercises against critical financial systems
  • The role of cooperation and coordination between the regulator and the regulated
  • Case study: design and implementation of the Central Bank of Ireland’s initiative

New opportunities in AML, CFT and Anti-fraud
Workshop with Kimmo Soramäki
, Founder and CEO, Financial Network Analytics and founding Editor-in-Chief, Journal of Network Theory in Finance

  • Key financial crime risks of the digital era
  • Examples of Big Data and Machine Learning applications in KYC and KYCC
  • The role of international and public-private cooperation and coordination
  • Hands-on exercise: automated vs. manual Fraud and AML investigation


Day 4, 13th September - Governance, Risk and Culture

Resolution and re-organisation of failed financial institutions
Nadège Jassaud,
Head of Resolution Strategy, Process and Methodology Unit, Single Resolution Board (invited)

  • Evolution of bank resolution regimes since the global financial crisis
  • Overview of policy responses and macro-prudential measures including changed governance arrangements and early intervention
  • Examples of new resolution policy tools such as re-organisation and resolution funds and “bail-in” options
  • Discussion: how can regulators allow a large institution to develop as an international entity in its “life” whilst preparing to handle its resolution in “death”?

Forward-looking supervision in focus: adaptability and responsiveness
Ria Roerink, Senior Economist, Strategy, The Netherlands Bank

  • Overview of short-term and long-term threats to financial stability
  • Assessment of reports, frameworks and approaches by global authorities including the IMF, Basel Committee and the United Nations
  • Key expectations in relation to regulatory and supervisory implications of climate, cyber and technology risks
  • Discussion: which areas will require the highest level of regulatory and supervisory adaptability and responsiveness in the delegates’ home jurisdictions?

Course summary and delegate action points
Led by the chair, Maria Nieto

  • Summary of the training course
  • Discussion of the observed trends and case studies 
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points