Financial Reporting, Accountability and Independence in Central Banking main page 2021

Financial Reporting, Accountability and Independence in Central Banking

Financial Reporting, Accountability and Independence in Central Banking

September 13 – 16

Chair: Kenneth Sullivan, director, Sullivan Consulting and former senior financial expert, International Monetary Fund

“Do central banks have the financial resources they need to fulfil their mandate?” Once an abstract, academic question, this became front page news in March 2020 following official sector responses to Covid-19.

The Covid pandemic has demonstrated that even if the crisis is beyond the narrow financial markets mandate, the central bank is a first responder. For those charged with overseeing their central bank’s balance sheet, the impact of the crisis will be felt for years to come. More broadly, central bankers’ stakeholders continue to critically question long-held tenets on reporting of central bank’s performance, the justification for their balance sheet composition and ability to adopt to evolving challenges in financial market and intermediation.

This course, “Financial Reporting, Accountability and Independence in Central Banking” is designed to assist central bankers with responsibilities in finance and financial reporting to effectively discharge their transparency requirements that support central bank independence.

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

Timings: 8am-12pm (ET) | 1pm-5pm (BST) | 8pm-12am (SGT) 

Course agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

New Dynamics Shaping Central Bank Balance Sheets

13:0013:15

Course introduction
Course introduction session led by the chair

13:00 - 13:15

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations
Kenneth Sullivan

Sullivan Consulting

Director

Kenneth Sullivan's central banking career is built around periods as a senior financial sector expert with the International Monetary Fund and seven years at the Reserve Bank of New Zealand as chief manager of both accounting and corporate services. During his tenure the RBNZ developed new reporting frameworks that won accounting prizes for their transparency and completed a fundamental reorganisation of the bank. Prior to that he provided a financial management information system consultancy, held senior accounting roles in insurance and wholesaling, and worked in education. He has written on issues of central bank financial reporting, capital adequacy, organisation and accountability. 2014 saw publication of the book Financial Independence and Accountability for Central Banks that he edited with Martina Horakova of Central Bank Publications. Whilst at the IMF he represented the IMF on the International Financial Reporting Standards Advisory Council for 7 years and provided advice to over 90 central banks along with a secondment to a London bank working on structured finance.

13:1514:15

The reality of central banking under a multi-mandate framework

13:15 - 14:15

  • The key issues facing the modern central bank
  • Challenges central banks face in adapting to the new environment
  • Implications for balance sheets, contingent liabilities and shareholder relations
  • Discussion: impact of Covid-19 measures on balance sheets in participants’ home jurisdictions
Marko Škreb

former Governor

Croatian National Bank

Marko Škreb is a former governor of the Croatian National Bank and, currently, resident project manager for Canada-IMF Capacity building project at the National Bank of Ukraine. He moved to Kyiv from his position as advisor at the International Monetary Fund’s Regional Technical Assistance centre in Accra, Ghana.  Before that, he was chief economist and strategist at the second largest commercial bank in Croatia. Mr. Skreb started his professional career teaching at the University of Zagreb. Following academic vocation he joined the Croatian central bank, first as research and statistics director and later on as governor (from 1996 to 2000). In 1997 he was awarded the Central European Annual Awards for Excellence - Best Central Bank Governor by the Banker. Since 2000 he worked as a consultant for the International Monetary Fund and the World Bank in numerous countries, mostly in South-East Europe. He also worked at the Independent Evaluation Office of the IMF in Washington DC in the period 2004-2005. Mr Škreb published a number of articles and edited books, focusing on transition questions and financial issues.

14:1514:30

Break

14:15 - 14:30

14:3015:30

Protecting policy solvency: the question of capital structures

16:00 - 17:00

  • Evaluating the relationship between a central bank's capital arrangements and its functions
  • Overview of models of profit and loss sharing across central banking
  • The impact of Covid-19 measures on central bank balance sheet and results
  • How can capital arrangements be improved in participants’ home institutions?
Kenneth Sullivan

Director

Central bank consulting and former senior financial expert, International Monetary Fund)

Kenneth Sullivan was until 2015 a senior financial sector expert with the International Monetary Fund. Previously, he spent seven years at the Reserve Bank of New Zealand as chief manager of both Accounting and Corporate Services where the bank won accounting prizes for the transparency of its published financial statements. Prior to that he provided a financial management information system consultancy, held senior accounting roles in insurance and wholesaling, and worked in education. Starting in 1993 he served as accounting expert on IMF missions, providing accounting technical assistance to central banks around the world, organized and presented at central bank accounting workshops and participated in Financial Sector Assessment Program and Safeguard Assessment

15:3016:00

Networking break
An opportunity to share experiences with your fellow participants.

15:30 - 16:00

16:0017:00

CBDCs: how will they shape central banks?

14:30 - 15:30

  • What are the models for CBDCs and how would they work?
  • What are the opportunities and risks for central banks and the banking system?
  • Discussion: lessons from CBDC projects?
John Kiff

Former senior financial expert

Former International Monetary Fund

From 2005 to 2021 John Kiff was a Senior Financial Sector Expert at the International Monetary Fund (IMF). Prior to that, he was at the Bank of Canada for 25 years, where he spent most of his time managing the funding and investment of the government’s foreign exchange reserves, including running its interest rate and currency swap book. At the IMF he was part of the team that produces the semi-annual Global Financial Stability Report covering innovative financial products. More recently he has been focusing on fintech issues and central bank digital currency.

Good Practice Financial Reporting Frameworks, Tools and Value Add

13:0014:00

Financial statement challenges facing central banks

13:00 - 14:00

  • Appropriate central bank reporting framework
  • Specific challenges in IFRS and IPSAS
  • Accounting policies to best match policy performance
  • Discussion: how financial statements can add value
Robin Darbyshire

Former financial accountant at Bank of England

Robin Darbyshire is a chartered accountant who has worked, as an independent consultant for 10 years, mainly on central bank issues. He has undertaken a number of projects for the International Monetary Fund, including implementation of International Financial Reporting Standards (IFRS) in central banks. He has also worked on a payments system at a middle eastern central bank. Previously he spent 19 years with the Bank of England, for 17 of which he was responsible for the Bank’s accounts. He was a founder member of the committee that devised the accounting framework and policies for the European System of Central Banks and has recently undertaken projects for the European Central Bank related to Eurosystem accounting. He has written a number of articles on issues in central bank accounting and regularly speaks at conferences on central bank finances.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Audit: a cornerstone of governance

13:00 - 14:00

  • How can the central bank accountants react effectively to the audit process
  • 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
Jeremy Foster

former Financial Services Capital Markets Partner

PwC

Jeremy spent many years as a financial services partner with PwC, auditing and advising central banks in Asia, Africa, Europe and the former Soviet Union. He was founder and chair of the PwC Central Bank Advisory Group, working with central banks on financial reporting, risk, controls and governance. He recognises that central banks are unique institutions, and therefore, in addition to strong financial services knowledge, they require additional special skills in an auditor and adviser. He currently works as an adviser to PwC Switzerland on their audit of the BIS.

15:1515:30

Break

15:15 - 15:30

15:3016:30

Central bank financial results as part of the principal-agent contract between it and the political authorities

15:30 - 16:30

  • Financial relationships between central banks and government
  • Central government funding of central banks
  • Loss sharing and capital adequacy
  • Financial statements as a measure of performance
David Archer

Head of Central Banking Studies

Bank for International Settlements

Strengthening Accountability: Stakeholder Engagement and Assurance

13:0014:00

Effective IT for central bank reporting

14:15 - 15:15

  • Evolution of the role of IT in central banking reporting
  • Identifying opportunities for improved process and controls
  • Examples of applications and coordination of various digital tools
  • Case study: building a resilient data storage and management framework
Magnus Eriksen

Chief accounting officer

Norges Bank

Magnus Eriksen is the Head of Accounting at Norges Bank and responsible for the banks financial reporting, including accounting policies, internal control, annual report and compliance to relevant framework. Before joining Norges Bank in 2015, Mr. Eriksen worked as an authorised public accountant and management consultant at EY.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Understanding and managing operational and financial risk in a central bank governance framework

14:15 - 15:15

  • What are the key operational and financial risks a central bank face?
  • Understand the implications of risk management matrix
  • Strategies for effective co-ordination with the risk functions
  • Effective collecting of data and reporting on risks
Christian Durand

Former deputy comptroller general

Banque de France

Currently an international consultant in central banking and financial sector issues, Christian Durand was until 2018 deputy comptroller general of Banque de France, with direct reporting to the governor. His domain of responsibility included the audit function, operational risks and on-site inspections conducted by French examiners at the request of the Single Supervisory Mechanism (SSM) or the French banking supervision authority.  Before that, he was deputy director general for economics and international affairs at the Banque de France, and in this context was a member of Banque de France Monetary and Financial Stability Policy Committees and regularly attended CGFS meetings at the BIS. During his career, Mr. Durand has held senior positions with the International Monetary Fund’s Monetary and Capital Markets Department, the French Banking Supervisory Authority and the French Securities and Futures Commission and led negotiations ending with the signing of MOUs with the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). He has also worked extensively with financial institutions in France and other organizations, including the New York Federal Reserve Bank, the International Organization of Securities Commissions (IOSCO), FIRST initiative and the AFRITAC project. Through his different assignments he has developed a professional experience in central banking, international economics, financial supervision and financial sector development and stability issues. He has conducted or supervised the implementation of several technical assistance projects for the EU, the IMF or the Banque de France and led, for the IMF FSAP program, financial stability assessment missions in a wide range of countries starting with Cameroon in 1999 and ending with the United States in 2010. His academic education is in economics (thesis on “the concept of money in the controversies on capital, interest and fluctuations in the early thirties”), finance and law. 

15:1515:30

Break

15:15 - 15:30

15:3016:30

Aligning resource use with mandates: functional reporting for a central bank

15:30 - 16:30

  • Reporting by function vs reporting by department: a comparison
  • Strategies for an effective functional reporting
  • Implications for transparency and interdepartmental cooperation
  • Case study: how to report the costs (and income) by function
Henrik Gardholm

Head of accounting division

Sveriges Riksbank

Henrik Gardholm is the head of the Accounting Division of the Sveriges Riksbank, which is responsible for the central bank’s financial reporting and budgeting. He is also a member of the Accounting and Monetary Income Committee at the European Central Bank (ECB). Mr. Gardholm joined Sveriges Riksbank in April 1998, in a role responsible for financial reporting. He was then promoted to his current position in February 2006. Prior to joining Sveriges Riksbank, he was an internal auditor at a commercial bank called Nordea as well as an authorised public accountant at KPMG.

Safeguarding Independence

13:0014:00

Central bank profit (and loss) sharing models

13:00 - 14:00

  • Evaluating the relationship between a central bank's capital arrangements and its functions
  • Considerations for determining profit distribution models
  • Overview of models of profit and loss sharing across central banking
  • Considerations for future arrangements.
Kenneth Sullivan

Sullivan Consulting

Director

Kenneth Sullivan's central banking career is built around periods as a senior financial sector expert with the International Monetary Fund and seven years at the Reserve Bank of New Zealand as chief manager of both accounting and corporate services. During his tenure the RBNZ developed new reporting frameworks that won accounting prizes for their transparency and completed a fundamental reorganisation of the bank. Prior to that he provided a financial management information system consultancy, held senior accounting roles in insurance and wholesaling, and worked in education. He has written on issues of central bank financial reporting, capital adequacy, organisation and accountability. 2014 saw publication of the book Financial Independence and Accountability for Central Banks that he edited with Martina Horakova of Central Bank Publications. Whilst at the IMF he represented the IMF on the International Financial Reporting Standards Advisory Council for 7 years and provided advice to over 90 central banks along with a secondment to a London bank working on structured finance.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Oversight and accountability: an effective framework for co-operation

14:15 - 15:15

  • How do accountants work effectively with the board?
  • What are the needs of the board and how can they encouraged to be an effective part of financial reporting?
  • Understanding independence: how can those in financial reporting help the board maintain its independence
  • Discussion: practical examples from delegates home jurisdictions
Daniel Loeto

Chief financial officer

Bank of Botswana

15:1515:45

Networking break
An opportunity to share experiences with your fellow participants.

15:15 - 15:45

15:4516:15

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

15:45 - 16:15

  • 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
Kenneth Sullivan

Sullivan Consulting

Director

Kenneth Sullivan's central banking career is built around periods as a senior financial sector expert with the International Monetary Fund and seven years at the Reserve Bank of New Zealand as chief manager of both accounting and corporate services. During his tenure the RBNZ developed new reporting frameworks that won accounting prizes for their transparency and completed a fundamental reorganisation of the bank. Prior to that he provided a financial management information system consultancy, held senior accounting roles in insurance and wholesaling, and worked in education. He has written on issues of central bank financial reporting, capital adequacy, organisation and accountability. 2014 saw publication of the book Financial Independence and Accountability for Central Banks that he edited with Martina Horakova of Central Bank Publications. Whilst at the IMF he represented the IMF on the International Financial Reporting Standards Advisory Council for 7 years and provided advice to over 90 central banks along with a secondment to a London bank working on structured finance.

16:1516:30

Feedback forum
We will send a link in this session to the feedback form and would kindly ask that you help us improve the training product by completing the survey. We would also welcome any verbal feedback in this session.

16:15 - 16:30

Date: September 30
The Implementation Workshop is a chair-led forum where attendees will have the opportunity to discuss challenges around implementing the ideas they have learnt during the Live Content. Prior to the workshop you will be emailed questions to prepare in order to gain the most from the session with peers.

14:0015:00

Implementation Workshop

11:00 - 12:00

Benefits of attending the Implementation Workshop: 

  • 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

​​​​​At the conclusion of the training, participants will be able to:

  • Understand how to tackle the challenges in a multi-mandate environment
  • Gain insight into the state of the art in fintech
  • Assess best practice of accounting standards for modern central banks
  • Analyse the optimisation of IT applications for central bank reporting
  • Tackle the management of the audit process

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Kenneth Sullivan

Director

Central bank consulting and former senior financial expert, International Monetary Fund)

Kenneth Sullivan was until 2015 a senior financial sector expert with the International Monetary Fund. Previously, he spent seven years at the Reserve Bank of New Zealand as chief manager of both Accounting and Corporate Services where the bank won accounting prizes for the transparency of its published financial statements. Prior to that he provided a financial management information system consultancy, held senior accounting roles in insurance and wholesaling, and worked in education. Starting in 1993 he served as accounting expert on IMF missions, providing accounting technical assistance to central banks around the world, organized and presented at central bank accounting workshops and participated in Financial Sector Assessment Program and Safeguard Assessment