Financial and Banking Sector Services to Address Opportunities, Challenges and Risks
Financial and banking reforms have become increasingly crucial elements of economic reforms in the emerging market economies, with the rapid globalization of financial and banking systems, massive capital flows across countries, implications of the Global Financial Crisis, and the regulatory changes underway in the global financial world.
A new focus on financial sector stability is reflected in a range of recent developments, such as the development of the Financial Stability Board, international (Basel) standards for financial institutions and the related Reports on Observance of Standards and Codes (ROSC) as tools to prevent crises, and promote economic and financial development.
At Centennial Group, our Financial and Banking Sector practice helps governments, multilateral institutions and private financial houses respond to the opportunities, challenges and risks posed by these developments, in many cases to complement the financial sector assessment programs of the multilateral financial institutions, such as the IMF, World Bank, and the AsDB.
Our Financial Markets and Banking Expertise
We take a holistic view of global financial markets and banking, providing services that include:
- Identification and analysis of financial sector risks, vulnerabilities, the sector’s overall stability, and development needs.
- Authoritative analysis of the regulatory and institutional environment through the observance of International Standards, Codes and Guidelines on financial system supervision, market practices, and financial infrastructure.
- Design and implementation of sequenced strategies for domestic financial system development and its integration with global financial markets.
- Independent and authoritative assessments, including assisted self-assessments and pre-assessments of the observance of international standards, codes, guidelines and best practices in financial sector supervision (banking, insurance and securities markets); financial market infrastructure (legal and institutional framework, anti-money laundering and countering, terrorism finance, payment systems, insolvency regimes, safety nets, and systemic liquidity arrangements); financial sector governance (transparency, accounting and auditing regimes); and developing action plans to meet international standards and best practices.
- Central Banking policies, including monetary and exchange policy and operations (e.g. inflation targeting, monetary union issues, development of market-based instruments, etc.), payment settlement systems, central bank accounting and auditing.
- Development of Financial Stability Analysis capabilities of central banks and supervisory agencies.
- Identification of strategies and policies to enhance the reach and efficiency of domestic banking systems.
- Islamic Banking and finance-risk management, supervision, and product design.
- Micro-finance and access to financial services by small and medium industries.
- Advice and technical assistance in development of domestic and regional capital markets and contractual saving institutions (pension systems, insurance, collective investment vehicles, etc.).
- Advice and technical assistance in financial sector governance issues, including transparency, accounting and disclosure, and institutional structures (e.g., demutualization, unification of supervision) for effective governance.
- Advice and technical assistance in accessing foreign finance, including capital account opening and the related financial policy sequencing issues.
- Analysis of regulatory and institutional developments and its impact on the private sector, and assessments of financial policy environment and financial system risks and vulnerabilities in key countries to support private sector decision-making.
- Assessment of countries’ resilience to external and domestic shocks, and identification of actions necessary to enhance resilience.
- Promotion of inclusive finance.
Typical Global Financial Markets and Banking Assignments
Below is a sampling of the types of financial market and banking-related projects the Centennial Group team has conducted for governments, development organizations, and the private sector:
- Leadership of the Asian Development Bank Program to assess the vulnerabilities and formulate longer term development strategies for the financial systems of India, Nepal, and Vietnam, as well as preparation of a framework for further ADB assistance to other countries in South Asia.
- Assessment of the financial systems in a number of Asian economies after the global financial crisis, and direct policy advice to senior policy-makers, including finance ministers, governors of central banks and other regulators, in Korea, Thailand, China, Singapore, India, and Indonesia.
- The development of financial sector strategies for the World Bank for China, Korea and Indonesia as part of the next phase of economic reforms after the crisis resolution.
- Preparation of policy papers for the World Bank, outlining issues and strategies for their forum of small financial systems.
- Assistance in self-assessments of observance of supervisory and payment-system standards, and financial stability assessments in preparation for formal Bank-Fund FSAP assessments.
- Leading and participating in FSAP assessments, and preparation of the related Reports on the Observance of Standards and Codes, and Financial System Stability Assessments.
- Preparation of policy papers and provision of technical assistance in the areas of risk management, supervision, and monetary management under Islamic banking.
- Updating the FSAP assessments in selected areas in light of current policy developments, and preparation of new reform programs in supervision, monetary management and market development.
- Preparation of Financial Sector Assessment—A Handbook (A joint World Bank–IMF project, published by the World Bank in September 2005) as an authoritative and comprehensive source on techniques, methodologies, and procedures for assessing stability and development of financial systems, drawing on the experience with the FSAP assessment process.
- Projects (including a joint Asian Development Bank–Islamic Development Bank project, and several IMF projects) to develop and implement international prudential standards for Islamic Finance, covering accounting and disclosure, supervisory review, legal framework, risk measurement, and capital adequacy in Islamic finance.
- A project for the Asian Development Bank to assess pension reforms and analyze global experience in expanding pension access to informal sector workers.
- Demutualization of stock exchanges and capital market reforms in India, for the Asian Development Bank.
- Debt sustainability assessments of some 20 countries in Asia, Africa, Europe and Latin America.
Meet the principal(s) that lead our Global Financial Markets and Banking assignments:
Head of Global Financial Markets and Banking Practice