Financial Reporting, Accountability and Independence in Central Banking

Financial Reporting, Accountability and Independence in Central Banking

Financial Reporting, Accountability and Independence in Central Banking

Course Chair: Kenneth Sullivan, Director, Sullivan Consulting and former Senior Financial Expert, International Monetary Fund

 

Day 1, 17th September – Dealing with Disruption


Changing composition of central bank balance sheet
Charles Goodhart
, Professor Emeritus, London School of Economics, Financial Market Groups 

  • Evolution of central banks’ balance sheet size and composition 
  • Overview of factors and dynamics shaping central banks’ balance sheets 
  • Use of balance sheets as an operational tool for policy implementation
  • Discussion: what is the ideal size and composition of the balance sheet in the era of monetary policy normalisation? 


Challenges for central banks in a multi-mandate environment
Marko Skreb
, former Governor, Croatian National Bank 

  • Operational challenges central banks face in adapting to the new environment 
  • Implications for budgets and shareholders reactions  
  • Impact on the legal framework and risk management  
  • Discussion: multi mandate environment in participants’ home jurisdiction 


FinTech revolution: risks and opportunities for accounting 
Nicolai Andersen
, Partner, Innovation Leader, Deloitte 

  • Implications of disruptive innovation for central banking 
  • Risk and opportunities of FinTech for accounting processes 
  • Strategies to successfully integrate FinTech tools into accounting practices
  • Case study: new application of DLT and blockchain in accounting 


Day 2, 18th September – Accounting Frameworks: Key Challenges and Opportunities for Central Banks 


Implementation experience: a review of IFRS 9 and the next steps
Workshop with Andria Manelashvili,
Head of Finance and Accounting Department, National Bank of Georgia – (invited)

  • Key differences between IFRS 9 and other accounting standards 
  • Assessment of the implementation of IFRS 9 
  • Tips to overcome challenges associated with the implementation of IFRS 9   
  • Discussion: IFRS 9 in delegates’ home jurisdictions


Optimising IT application for central bank accounting and financial reporting
Orjan Agdesteen
, Chief Financial Officer, Norges Bank 

  • Evolution of the role of IT in central banking reporting 
  • Overview of the emerging opportunities for central bank accountants  
  • Examples of applications and coordination of various digital tools
  • Case study: building a resilient data storage and management framework 


Structure of an accounting function in a central bank
Michael Diemer,
Chief Services Officer, European Central Bank – (invited)

  • Organization of accounting function as a support function in a central bank 
  • The role of reporting in accountability and transparency towards internal and external stakeholders 
  • Strategies for successful communication and coordination with the board and other departments
  • Discussion: how accounting fits into the wider strategic plan of the central bank


Implication of a strategic change for a central bank accountant
Robin Darbyshire
, former Financial Accountant, Bank of England 

  • Overview of the strategic link between accounting and central banks financial strength 
  • Role of accounting in maintaining central banking independence 
  • Implications for the relationship with the public and stakeholders 
  • Discussion: how to determine the appropriate level of financial resources needed for central banks to perform their functions? 


Effective reporting of performance by function
Henrik Gardholm
, Financial Controller, Sveriges Riksbank 

  • The role and expectations of the financial controller  
  • Strategies for an effective function reporting 
  • Implications for transparency and interdepartmental cooperation 
  • Case study: how to report the costs (and income) by function


Day 3, 19th September – Increased Interaction with Stakeholders: Showing Value 


Managing the audit process in a central bank 
Chris Sermon
, Financial Reg Senior Manager, PwC 

  • What an auditor expects from central bank accountants 
  • How should central bank accounts communicate with audit function 
  • What criteria the auditors use to assess the appropriateness of the reporting frameworks 
  • Strategies to deal with the challenges of the audit process at central banks 


Role of audit in central bank transparency
Christian Durand
, former Deputy Comptroller General, Banque de France 

  • Building blocks of an accountable and transparent central bank 
  • Tips for effective communication between accountants and other departments  
  • Examples of strategies to achieve better transparency
  • Discussion: the role of reporting in improving central banking transparency 


Capital arrangements in central bank laws
Workshop with Kenneth Sullivan
, Director, Sullivan Consulting and former Senior Financial Expert, International Monetary Fund 

  • Evaluation of the relationship between capital arrangements and central bank functions
  • Overview of gains and losses resulting from the changes 
  • Examples of the criteria for the assessment of capital arrangements
  • Hands on exercise: how can capital arrangement be improved in the participants’ home institutions? 


Day 4, 20th September – Legal and Financial Independence 


Profit distribution arrangements and impact on capitalisation 
Kenneth Sullivan  

  • Evolution of profit distribution rules and how this affects the financial strength of central banks 
  • Overview of key principles for maintenance of central bank capital 
  • Tools and frameworks for revising profit and loss sharing arrangement 
  • Hands on exercise: how to revise profit and wealth sharing arrangements 


Legal frameworks under a multi-mandate environment 
Atilla Arda
, Senior Financial Sector Expert, International Monetary Fund  

  • What legal change means for the central banks accountants department
  • What information does the legal department expect from the accounts department
  • Examples of effective coordination between the legal and accounting department
  • Discussion: cooperation with legal departments in the delegates’ home institutions


Delegate action points and course conclusion 
Kenneth Sullivan 

  • Summary of the course and main points
  • Discussion of the observed trends and case studies 
  • Application of learning points in the participants home organisations
  • Preparation of action points