PLAN OF ACTION
OF THE BSEC WORKING GROUP
ON BANKING AND FINANCE
July 1, 2013 – June 30, 2015
Country-Coordinator: TURKEY
I. GENERAL OBJECTIVES
The present Plan of Action of BSEC Working Group on Banking and Finance (hereinafter – Working Group) defines main goals, objectives and measures for the closer cooperation in the field of Banking and Finance in the Black Sea region for 2013-2015 years.
The Working Group in its activities shall be guided by the “BSEC Charter, the Istanbul Summit Declaration on the Black Sea Economic Cooperation signed on 25 July 1992”, “principles and priorities consolidated in the Istanbul Summit Declaration on the Occasion of the Twentieth Anniversary of the Organization of the Black Sea Economic Cooperation (Istanbul, 26 June 2012)” and “the BSEC Economic Agenda: Towards an Enhanced BSEC Partnership (Belgrade, 11 June 2012)”.
As one of the BSEC priority tasks is to insure sustainable development in the Black Sea region, key efforts of the Working Group on Banking and Finance are expected to be focused on enhancing the closer cooperation in the field of banking and finance and establishing close relationships between the supervisory authorities of financial systems of BSEC Member States which will contribute to the development of trade and economic cooperation among the BSEC Member States.
“BSEC Economic Agenda Towards an Enhanced BSEC Partnership” document was adopted by the BSEC Council of Ministers of Foreign Affairs (Belgrade, 11 June 2012) and endorsed by the BSEC Heads of State and Government during the BSEC 20th Anniversary Summit (Istanbul, 26 June 2012). This document defines general guidelines of action and accordingly priority areas of action. The “Goal 10” of the prioritized areas is on the closer cooperation in the field of banking and finance. The “Goal 10” states four framework of actions:
1. Making good use by the BSEC Member States, individually as well as on a collective basis, of the existing framework of the BSTDB and other International Financial Institutions active in the BSEC Region.
2. Expanding, where possible, dialogue on issues related to banking and financial sector regulations, supervision and exchange of information among the BSEC Member States.
3. Exploring opportunities for regional cooperation and coordination in combating crime in banking and financial services.
4. Seeking cooperation and support from national institutes and other relevant international bodies in order to provide training of personnel on good practices and evolving standards in the field of banking and finance, through thematic workshops and seminars.
In addition to this document, the 27th Meeting of the Council of Ministers of Foreign Affairs of the BSEC Member States (Istanbul, 15 December 2012) adopted a document titled “The Way Forward for an Action Plan on the Implementation of the Economic Agenda Towards an Enhanced BSEC Partnership” which defines the priorities contained under each Goal in the Economic Agenda.
Within this framework, the Working Group on Banking and Finance will align its activities with the prioritized actions of the Economic Agenda for the medium-term (2013-2015), observing the timelines stipulated in the document.
In accordance with the provisions of the “BSEC Economic Agenda: Towards an Enhanced BSEC Partnership” related to cooperation with international and regional organizations/bodies, Working Group on Banking and Finance shall develop cooperation with international financial institutions such as World Bank (WB), International Monetary Fund (IMF), Organization for Economic Co-operation and Development (OECD), Basel Committee on Banking Supervision (BCBS) and regional organizations such as Black Sea Trade and Development Bank (BSTDB) and the International Centre for Black Sea Studies (ICBSS) and others.
The Working Group on banking and finance shall initiate joint meetings of the BSEC working groups, seminars, conferences and others international activities aimed at study of the best world practices for banking and finance.
2. LIST OF ACTIVITES
Based on the themes which are defined in the document “The Way Forward for an Action Plan on the Implementation of the Economic Agenda Towards an Enhanced BSEC Partnership”, the following activities are proposed by the Working Group on banking and finance:
- Seeking cooperation and support from national institutes and other relevant international bodies in order to provide training of personnel on good practices and evolving standards in the field of banking and finance, through thematic workshops and seminars.
1. Workshop on Basel III Implementation: Through this workshop the participants will be able to understand the latest developments on Basel III framework and see an overview of the changes and implementation.
2. Workshop on Resolution Policies and Frameworks: As it is seen during the financial crisis, the resolution of especially systemically important financial institutions (SIFIs) is an important subject. With this workshop, within the context of the Financial Stability Board (FSB) recommendations an assessment of the legislative policies can be discussed in order to accomplish effective resolution of systemically important financial institutions.
3. Workshop on Authorities’ Preparedness to Financial Crises: The current global financial crisis being one of the most serious of the last several decades showed that financial sector authorities need to deal with emerging problems in financial institutions and financial markets, and to mitigate the risk of systemic crisis. In this regard, with the assistance of the World Bank, this workshop can help to strengthen the authorities’ contingency plans for dealing with distress, and to test the authorities’ preparedness through the use of simulation exercises.
4. Workshop on Financial Consumer Protection and Education: The global financial crisis highlighted the need for more effective financial consumer protection measures as consumers face more sophisticated and complex financial markets. With a workshop, the evaluation of good practices and priorities in financial consumer protection and education can be discussed.
- Expanding, where possible, dialogue on issues related to banking and financial sector regulations, supervision and exchange of information among the BSEC Member States.
1. For the efficiency of the cooperation and communication among the BSEC Member States, a list of contact points from supervisory authorities in financial sector who are delegated to represent their country will be prepared and shared with the Members.
2. A data base (IT platform) will be formed where Member States can share information on legislations, supervisory approaches and recent developments on the Member Countries’ banking sectors. Also through this platform, the national draft regulations can be shared for taking feedbacks.
3. With the aim of strengthening the regulatory and supervisory framework and enhancing financial stability in the region, annual meetings will be held which will establish a forum for cooperation on banking matters between supervisory authorities.
4. Financial sector summits will be arranged annually where the representatives of the authorities and financial institutions present recent development in the financial sector of the Member States and discuss about the regional issues.
- Making good use by the BSEC Member States, individually as well as on a collective basis, of the existing framework of the BSTDB and other International Financial Institutions active in the BSEC Region.
1. An informative seminar about The Black Sea Trade and Development Bank’s (BSTDB) activities, strategies and credit policies will be arranged to promote the banking facilities of the Bank.
2. In order to enhance the collaboration between the national banking associations of Member States and to bring the representatives of these organizations together, meetings will be organized.
3. MEETINGS OF THE WORKING GROUP
First Meeting of the Working Group on Banking and Finance: BSEC Headquarters, Istanbul, on 28-29 November 2013. Discussion and adoption of the Draft Plan of Action of the BSEC Working Group on Banking and Finance for the period 2013-2015.
The following meetings of the Working Group: to be decided by the coordination between BSEC PERMIS and the Country Coordinator.
4. COOPERATION WITH OTHER BSEC BODIES
a) Other Working Groups
Working Group on Exchange of Statistical Data and Information – cooperation and exchange of information on statistical information about the financial system and macro-economic variables of BSEC Member States.
Working Group on Trade and Economic Development – cooperation and exchange of information on the role of financial system and banking sector on the economic development.
b) Related Bodies
Black Sea Trade and Development Bank (BSTDB) – cooperation on the financial support to the corporations and institutions operating in Member States.
The International Centre for Black Sea Studies (ICBSS) – cooperation on the research activities regarding the financial sector of the Member States.
5. COOPERATION WITH OTHER INTERNATIONAL ORGANIZATIONS
Enhanced cooperation with; international financial institutions such as World Bank (WB), International Monetary Fund (IMF), Organization for Economic Co-operation and Development (OECD), Basel Committee on Banking Supervision (BCBS) and regional organizations such as Black Sea Trade and Development Bank (BSTDB) and the International Centre for Black Sea Studies (ICBSS) and others.