Prudential Regulation and Supervision: Challenges in an Era of Financial Disruption - main page

Prudential Regulation and Supervision - main page

Prudential Regulation and Supervision: Challenges in an Era of Financial Disruption

March 15 - 18

Chair: Maria Nieto, Senior Advisor in the directorate of financial stability, regulation and resolution, Bank of Spain

  • How has Covid-19 impacted the supervision and regulation of financial markets?
  • How can climate related risks be implemented into the design of prudential regulation?
  • What should the financial regulatory responses be to CBDCs, stablecoins and crypto assets?
  • How can authorities effectively support innovation?

These are among the main challenges facing regulators and supervisors in 2021, as economies and markets look to recover from the Covid-created economic emergency of 2020. More broadly, further disruptive forces are being unleashed through the introduction of new technologies and climate policies. Combined, these are impacting supervisory and regulatory frameworks in unprecedented ways.

Chaired by European regulatory expert Maria Nieto and a roster of speakers from central banks around the world, this new course will address the key challenges confronting the regulatory and supervisory community. Participants will gain a deeper understanding of: how to manage the financial risk of climate change and the best way to respond as regulators, technological disruptions such as CBDCs and the management of innovation, cyber resilience at a time of remote working, and emerging standards in financial regulation broadly.

Each day will feature three hours of expert-led live content to maximize the opportunity to share and learn. The Course chair will ensure participants have opportunities to network throughout the programme.


APAC timezone: 2pm-5pm (SGT) | 6am-9am (GMT) | 1am-4am (ET)

Prudential regulation and supervision: challenges in an era of financial disruption agenda

Current landscape of regulatory and supervisory challenges

06:0006:15

Course introduction
Course introduction session led by the chair

06:00 - 06:15

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations
Maria Nieto

Advisor in the Directorate of Financial Stability, Regulation and Resolution

Bank of Spain

María J. Nieto is Associate to the Director General, Banking Regulation at Bank of Spain where she has developed different responsibilities in the realm of financial stability and its regulatory framework including crisis management since December 2000. Ms Nieto has been a contributor to the Basel Committee of Banking Supervisors as well as the European Commission, BIS, ECB and OECD. She is author of several articles on banking and regulatory issues that have been published by prestigious journals and member of the Editorial Boards of the Journal of Banking Regulation and the Journal of Financial Regulation and Compliance. She has cooperated as consultant with the IMF and the Federal Reserve Bank of Atlanta and has worked at the ECB, Council of Economic Advisors to the Spanish President, the EBRD and the IMF. Ms Nieto earned a PhD cum laude from the Universidad Complutense de Madrid and a MBA from the University of California Los Angeles.

06:1506:45

The current regulatory and supervisory landscape

06:15 - 06:45

  • An overview of the regulatory agenda
  • The reinforced role of supervision: key focus points 
  • The main challenges for the financial sector in an era of innovation and climate change transition 
Pedro Duarte Neves

Former vice-governor

Bank of Portugal

Pedro Duarte Neves was Vice-Governor of Banco de Portugal from June 2006 to September 2017. During that period, he also chaired the Board of the Deposit Guarantee Fund, the Board of the Resolution Fund and the Board of the National Council for Audit Supervision. As of September 2017 he acts as Adviser for the Board of Directors of Banco de Portugal.

Pedro Duarte Neves acted as Alternate Chairperson of the EBA from July 2013 to June 2018 and, over the past years, chaired a number of European groups on economic and financial matters in the scope of the Financial Stability Board, the European Banking Authority and the Joint Committee of the European Supervisory Authorities. Pedro Duarte Neves was a member of the ECB’s Supervisory Board until September 2014 and a member of the General Board of the European Systemic Risk Board, from its creation to September 2017.

He joined the Research Department of Banco de Portugal in 1994 and served there until July 2004. He chaired the National Communications Authority (ANACOM) from September 2004 to June 2006.

Pedro Duarte Neves holds a PhD in Economics from Université Catholique de Louvain and he is Professor at Católica Lisbon – Business and Economics.

06:4507:00

Break

06:45 - 07:00

07:0007:45

Bank recovery and resolution vs bank liquidation: the state of affairs in the aftermath of the Covid-19

07:00 - 07:45

  • Bank recovery and resolution: the EU experience and the implementation challenges
  • Bank liquidation: instruments or actions available in bank insolvency 
  • The use of technology for resolution (ResTech) 
Giuseppe Loiacono

Economist/Policy Expert

Single Resolution Board

07:4508:00

Break

07:45 - 08:00

08:0008:45

Basel III and the Covid 19 crisis

06:00 - 06:45

  • How has Covid-19 impacted Basel III?
  • Release of capital buffers (structural vs cyclical buffers) as an immediate response to the crisis of Covid-19
  • Release of liquidity buffers as an immediate response to the crisis of Covid-19
  • Has the Basel III agreement proved sufficient in this recent crisis?  A critical assessment
Bozena Gulija

Former State Street Bank & Croatian National Bank

Bozena Gulija is a former vice president and regulatory manager (banking supervision & regulation) at State Street Bank. Bozena has over 15 years of experience in the financial sector covering different aspects of the challenges related to the finance industry, including banking supervision, prudential regulation, risk management and various jurisdictions and business models.

Equipped with a background in economics, finance/banking and international relations, she has worked for private organisations including State Street Bank, Nordea Bank, Privredna banka (Intesa Sanpaolo Group), as well as public institutions such as the European Court of Auditors, the Croatian National Bank, Institute for Development and International Relations and the Croatian Chamber of Economy.

Bozena holds a Master’s Degree in Economics & Finance from the University of Zagreb, Croatia. She also holds various postgraduate studies from Georgetown University (International Institute for Political and Economic Studies) and The London School of Economics and Political Science, LSE (Business, International Relations and the Political Economy).

Learning from Covid-19 and looking to the future

06:0006:45

Integrating climate related and environmental risks into prudential supervision

08:00 - 08:45

  • What is the role of the supervisor in urging financial institutions to manage climate related risks?
  • How can regulators and supervisors support a green recovery from the pandemic?
Gabor Gyura

Head – supervisory methodology department

Central Bank of Hungary

06:4507:00

Break

06:45 - 07:00

07:0007:45

Stress testing banks: a comparative analysis - have we learnt anything from the Covid-19 crisis?

07:00 - 07:45

  • Why stress test? Founding principles and motivations
  • Microprudential vs sytem wide bank stress testing:  How do they differ?
  • Microprudential stress testing:  an inter-country comparison
  •  Case study: Stress testing as a prudential regulatory tool
Jerome Henry

Principal adviser, macro-prudential policy and financial stability

European Central Bank

07:4508:00

Break

07:45 - 08:00

08:0008:45

Debt restructuring in the Covid-19 era: Reassessing insolvency procedures and sovereign debt restructuring

08:00 - 08:45

  • Requirements of effective corporate liquidation procedures
  • Corporate debt: Out of court vs court supervised procedures
  • Sovereign debt restructuring:  recent initiatives proposed by the G-20
Rodrigo Olivares-Caminal

Professor in banking and finance law

Queen Mary University of London

Rodrigo Olivares-Caminal is a Professor in Banking and Finance Law at the Centre for Commercial Law Studies (CCLS) at Queen Mary University of London. Prior to joining CCLS he was a Senior Lecturer in Financial Law and the Academic Director at the Centre for Financial and Management Studies (SOAS), University of London and the School of Law, University of Warwick. He taught in undergraduate and postgraduate courses in various Schools of Law and Business Schools in the United Kingdom, Spain, Greece, France and Argentina as well as in professional training courses in Africa, Asia and Europe. He has acted as a Sovereign Debt Expert for the United Nations Conference on Trade and Development (UNCTAD), Senior Insolvency Expert for the World Bank / IFC and as a consultant to several multilateral institutions in Washington DC and Europe, Central Banks and Sovereign States as well as in several international transactions with Law Firms. He specialises in international finance and insolvency law. He is the author/editor of seven books and has extensively published in peer-reviewed journals. He sits in the editorial/advisory board of several law journals in the UK and US and is a member of national and international institutions and associations specialised in comparative commercial and insolvency law.

Towards a framework for disruptive technologies

06:0006:45

Digital money: CBDCs, stablecoins and crypto assets – what prudential regulators and supervisors need to know

06:00 - 06:45

  • Taxonomy of digital money definitions, differences and overlaps
  • Implications for systemic risk, payments markets and central banking
  • Frameworks for regulating and supervising privately issued crypto assets and stablecoins
  • Discussion: do CBDCs represent a realistic and desirable goal?
Gabriel Söderberg

Financial Sector Expert

IMF

Gabriel Söderberg is a Senior Economist at Sveriges Riksbank and an Associate Professor in economic history at Uppsala University. He works with the Riksbank’s CBDC project and related developments in the financial and payments sectors. As a university researcher he currently investigates and writes a book on the nature of economic – including monetary and financial - instability and how society deals with them.

06:4507:00

Break

06:45 - 07:00

07:0007:45

Regtech & suptech: technological foundations in focus

07:00 - 07:45

  • Overview of the latest developments in regtech and suptech 
  • The impact of regtech and suptech on supervisors and the supervised
  • Big data, machine learning and cloud services – examples of practical applications
  • Workshop: how to effectively coordinate the innovations efforts of the regulator and the regulated?
Beju Shah

Special Advisor (Digital Innovation)

Bank of England

07:4508:00

Break

07:45 - 08:00

08:0008:45

Sandboxes, incubators and accelerators: the key pillar of building compliant innovation

08:00 - 08:45

  • Sandboxes, incubators and accelerators: a central bankers guide
  • Role and functions in innovation strategies
  • Tips for helping innovation comply with legal and regulatory requirements 
  • Issues for funding resourcing cross-jurisdictional cooperation
Douglas Arner

Kerry Holdings Professor in Law

University of Hong Kong

Douglas W. Arner is the Kerry Holdings Professor in Law and Director and co-founder of the Asian Institute of International Financial Law at the University of Hong Kong, as well as Faculty Director and co-founder of the LLM in Compliance and Regulation, LLM in Corporate and Financial Law, and Law, Innovation, Technology and Entrepreneurship (LITE) Programmes.

In 2020 he was awarded an inaugural Hong Kong Research Grants Council Senior Fellowship to study the role of digital finance in financial inclusion and the UN Sustainable Development Goals. Douglas has published eighteen books and more than 200 articles, chapters and reports on international financial law and regulation, most recently Reconceptualising Global Finance and its Regulation (Cambridge 2016) (with Ross Buckley and Emilios Avgouleas) and The RegTech Book (Wiley 2019 (Janos Barberis and Ross Buckley).

He is a Senior Visiting Fellow of Melbourne Law School, University of Melbourne, a non-executive director of NASDAQ and Euronext listed Aptorum Group and an Advisory Board Member of the Centre for Finance, Technology and Entrepreneurship (CFTE). Douglas was an inaugural member of the Hong Kong Financial Services Development Council (2013-2019) and Director of the Duke-HKU Asia America Institute in Transnational Law (2005-2016).

Resilience of the financial system

06:0006:45

Shadow banking sector in the context of the Covid-19 crisis: What was different this time?

06:00 - 06:45

  • Recent evolution of the shadow banking sector
  • Key features of institutional make-up and interconnections with the regulated sector
  • The role of the shadow banking in the market turmoil caused by the Covid-19 crisis Discussion: effective regulatory responses in delegates’ home jurisdictions
Douglas Arner

Kerry Holdings Professor in Law

University of Hong Kong

Douglas W. Arner is the Kerry Holdings Professor in Law and Director and co-founder of the Asian Institute of International Financial Law at the University of Hong Kong, as well as Faculty Director and co-founder of the LLM in Compliance and Regulation, LLM in Corporate and Financial Law, and Law, Innovation, Technology and Entrepreneurship (LITE) Programmes.

In 2020 he was awarded an inaugural Hong Kong Research Grants Council Senior Fellowship to study the role of digital finance in financial inclusion and the UN Sustainable Development Goals. Douglas has published eighteen books and more than 200 articles, chapters and reports on international financial law and regulation, most recently Reconceptualising Global Finance and its Regulation (Cambridge 2016) (with Ross Buckley and Emilios Avgouleas) and The RegTech Book (Wiley 2019 (Janos Barberis and Ross Buckley).

He is a Senior Visiting Fellow of Melbourne Law School, University of Melbourne, a non-executive director of NASDAQ and Euronext listed Aptorum Group and an Advisory Board Member of the Centre for Finance, Technology and Entrepreneurship (CFTE). Douglas was an inaugural member of the Hong Kong Financial Services Development Council (2013-2019) and Director of the Duke-HKU Asia America Institute in Transnational Law (2005-2016).

06:4507:00

Break

06:45 - 07:00

07:0007:45

Cyber resilience of digitalized ecosystems: roles and responsibilities of regulators and supervisors

07:00 - 07:45

  • Building blocks of an effective cyber resilience framework
  • The role of intelligence-led exercises in cyber resilience strategies 
  • Examples of initiatives facilitating cooperation and coordination between the regulator and the regulated
  • Discussion: what cyber risks do regulators and supervisors need to focus on as a priority?  Have cyber risks being reassessed in the covid -19 crisis?
Manit Sahib

Head of penetration testing

Bank of England

Manit Sahib is the Head of Penetration Testing at the Bank of England. He is an Offensive Security (OSCP) and CREST certified tester with NCSC’s CHECK status. Previously a security consultant at PwC, he has obtained a vast amount of technical experience from a variety of global organisations. Now, leading BoE’s offensive team to plug the gaps in a collaborative approach.

07:4508:00

Break

06:45 - 07:00

08:0008:30

Closing remarks and delegate action plans
Concluding session led by the chair

08:00 - 08:30

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

Advisor in the Directorate of Financial Stability, Regulation and Resolution

Bank of Spain

María J. Nieto is Associate to the Director General, Banking Regulation at Bank of Spain where she has developed different responsibilities in the realm of financial stability and its regulatory framework including crisis management since December 2000. Ms Nieto has been a contributor to the Basel Committee of Banking Supervisors as well as the European Commission, BIS, ECB and OECD. She is author of several articles on banking and regulatory issues that have been published by prestigious journals and member of the Editorial Boards of the Journal of Banking Regulation and the Journal of Financial Regulation and Compliance. She has cooperated as consultant with the IMF and the Federal Reserve Bank of Atlanta and has worked at the ECB, Council of Economic Advisors to the Spanish President, the EBRD and the IMF. Ms Nieto earned a PhD cum laude from the Universidad Complutense de Madrid and a MBA from the University of California Los Angeles.

Central Banking’s Post Training is a chair-led forum where participants can bring further questions or discussion points to group, after the live content and self-paced learning elements. What has worked, and what has not? Post Training focuses on questions that may have arisen since returning, the challenges of implementation and the setting of medium-term goals. Participants are encouraged to bring a short presentation, or questions on a particular topic, to gain the most from the discussions with peers.

12:0013:00

Post course catch up
Zoom link to be sent to you after the conclusion of the live content

11:00 - 12:00

Benefits of attending the post course catch up:

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

Learning outcomes

By the end of the training course, participants will be able to:

  • Understand the regulatory agenda and current supervisory landscape
  • Integrate climate and environmental risks in to prudential supervision
  • Use learnings from the Covid-19 crisis to create a sound stress testing framework
  • Create a framework for regulating and supervising privately issued crypto assets and stablecoins
  • Help innovation be compliant with legal. Ethical and regulatory requirements

Maria Nieto

Senior advisor

Bank of Spain

María J. Nieto is Senior Advisor in the Directorate of Financial Stability, Regulation and Resolution, at Bank of Spain where she has developed her career since December 2000. She is author of several articles on banking, financial stability and regulatory issues that have been published by prestigious peered reviewed journals and she is member of the Editorial Boards of the Journal of Banking Regulation and the Journal of Financial Regulation and Compliance. She has cooperated as consultant with the IMF and the Federal Reserve Bank of Atlanta and has worked at the ECB, Council of Economic Advisors to the Spanish President and the IMF. Ms Nieto earned a PhD cum laude from the Universidad Complutense de Madrid and MBA (finance) from the University of California Los Angeles.