The Federal Reserve has launched a website to help new bank directors learn how they can work to ensure the safety and soundness of their institutions. The website, www.BankDirectorsDesktop.org , also provides a refresher course for experienced board members.
BankDirectorsDesktop.org is tailored to directors of community banks and features online training and other resources to help directors better understand the issues and challenges associated with serving on a bank's board. The website includes links to the "Training for Bank Directors" interactive course and the latest edition of Basics for Bank Directors, a comprehensive guide to directors' roles and responsibilities.
"Many people who are asked to serve on bank boards have little training or experience to prepare them for their new roles," said Patrick M. Parkinson, director of the Federal Reserve Board's Division of Banking Supervision and Regulation. "This website has been developed with new directors in mind, but there is plenty of useful information for those who have already spent time on bank boards."
Monday, 8 February 2010
Sunday, 7 February 2010
CPSS-IOSCO Review of Standards for Payment, Clearing and Settlement Systems
The Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) have launched a comprehensive review of their existing standards for financial market infrastructures such as payment systems, securities settlement systems and central counterparties.
There are currently three sets of standards involved, namely:
• the 2001 Core principles for systemically important payment systems
• the 2001/2 Recommendations for securities settlement systems
• the 2004 Recommendations for central counterparties.
Financial market infrastructures generally performed well during the recent financial crisis, and did much to help prevent the crisis becoming even more serious than it actually was. Nevertheless, the committees believe that there are lessons to be learned from the crisis and, indeed, from the experience of more normal operation in the years that have passed since the standards were originally issued. It thus seems timely to review the standards with a view to strengthening them where appropriate.
Robust financial market infrastructures make an essential contribution to financial stability by reducing what could otherwise be a major source of systemic risk. Moreover, insofar as they enable settlement to take place without significant counterparty risk, they also help markets to remain liquid even during times of financial stress.
The review will be led by representatives of the central banks that are members of the CPSS and those of the securities regulators that are members of the IOSCO Technical Committee. The International Monetary Fund and the World Bank are also participating in the review. The review is part of the Financial Stability Board's work to reduce the risks that arise from interconnectedness in the financial system.
The committees will coordinate with other relevant authorities and communicate with the industry, as appropriate, as the work progresses. They aim to issue a draft of all the revised standards for public consultation by early 2011.
Separately, as announced in the press release on 20 July 2009, the CPSS and the Technical Committee of IOSCO are already in the process of providing guidance on how the 2004 Recommendations for central counterparties should be applied to CCPs handling OTC derivatives. The guidance will also cover other relevant infrastructures handling OTC derivatives such as trade repositories. This aspect of the work has been put on a fast track because of the new CCPs for OTC derivatives and trade repositories that have recently started, or are about to start, operating.
A consultative document on the guidance will be issued within the next few months. This new guidance will not entail amendments to the existing recommendations for CCPsbut will of course be incorporated into the general review of the standards that has now begun.
The Committee on Payment and Settlement Systems (CPSS) serves as a forum for central banks to monitor and analyse developments in payment and settlement infrastructures and set standards for them. Its members are central banks from 24 countries and regions. The chairman of the CPSS is William C Dudley, President of the Federal Reserve Bank of New York. The CPSS secretariat is hosted by the BIS. More information about the CPSS, and all its publications, can be found on the BIS website at www.bis.org/cpss .
The International Organization of Securities Commissions (IOSCO) is a policy forum for securities regulators. The organisation’s membership regulates more than 95% of the world’s securities markets in over 100 jurisdictions. The Technical Committee is a specialised working group established by IOSCO’s Executive Committee and is made up of 18 agencies that regulate some of the world’s larger, more developed and internationalized markets. Its objective is to review major regulatory issues related to international securities and futures transactions and to coordinate practical responses to these issues. Kathleen Casey, a Commissioner of the US Securities and Exchange Commission, is the chair of the committee. More information about the Technical Committee can be found at www.iosco.org/ .
The review will be co-chaired by the chairs of the CPSS and the IOSCO Technical Committee, ie William C Dudley and Kathleen Casey.
There are currently three sets of standards involved, namely:
• the 2001 Core principles for systemically important payment systems
• the 2001/2 Recommendations for securities settlement systems
• the 2004 Recommendations for central counterparties.
Financial market infrastructures generally performed well during the recent financial crisis, and did much to help prevent the crisis becoming even more serious than it actually was. Nevertheless, the committees believe that there are lessons to be learned from the crisis and, indeed, from the experience of more normal operation in the years that have passed since the standards were originally issued. It thus seems timely to review the standards with a view to strengthening them where appropriate.
Robust financial market infrastructures make an essential contribution to financial stability by reducing what could otherwise be a major source of systemic risk. Moreover, insofar as they enable settlement to take place without significant counterparty risk, they also help markets to remain liquid even during times of financial stress.
The review will be led by representatives of the central banks that are members of the CPSS and those of the securities regulators that are members of the IOSCO Technical Committee. The International Monetary Fund and the World Bank are also participating in the review. The review is part of the Financial Stability Board's work to reduce the risks that arise from interconnectedness in the financial system.
The committees will coordinate with other relevant authorities and communicate with the industry, as appropriate, as the work progresses. They aim to issue a draft of all the revised standards for public consultation by early 2011.
Separately, as announced in the press release on 20 July 2009, the CPSS and the Technical Committee of IOSCO are already in the process of providing guidance on how the 2004 Recommendations for central counterparties should be applied to CCPs handling OTC derivatives. The guidance will also cover other relevant infrastructures handling OTC derivatives such as trade repositories. This aspect of the work has been put on a fast track because of the new CCPs for OTC derivatives and trade repositories that have recently started, or are about to start, operating.
A consultative document on the guidance will be issued within the next few months. This new guidance will not entail amendments to the existing recommendations for CCPsbut will of course be incorporated into the general review of the standards that has now begun.
The Committee on Payment and Settlement Systems (CPSS) serves as a forum for central banks to monitor and analyse developments in payment and settlement infrastructures and set standards for them. Its members are central banks from 24 countries and regions. The chairman of the CPSS is William C Dudley, President of the Federal Reserve Bank of New York. The CPSS secretariat is hosted by the BIS. More information about the CPSS, and all its publications, can be found on the BIS website at www.bis.org/cpss .
The International Organization of Securities Commissions (IOSCO) is a policy forum for securities regulators. The organisation’s membership regulates more than 95% of the world’s securities markets in over 100 jurisdictions. The Technical Committee is a specialised working group established by IOSCO’s Executive Committee and is made up of 18 agencies that regulate some of the world’s larger, more developed and internationalized markets. Its objective is to review major regulatory issues related to international securities and futures transactions and to coordinate practical responses to these issues. Kathleen Casey, a Commissioner of the US Securities and Exchange Commission, is the chair of the committee. More information about the Technical Committee can be found at www.iosco.org/ .
The review will be co-chaired by the chairs of the CPSS and the IOSCO Technical Committee, ie William C Dudley and Kathleen Casey.
Saturday, 6 February 2010
Is this the future of Banking?
Australia’s Commonwealth Bank has a vision to be number one in customer satisfaction. This short video shows their idea of what the future of banking looks like with the customer clearly in the centre of their focus.
Is this really what the future of banking will be like?
Is this really what the future of banking will be like?
Friday, 5 February 2010
Bank Trader’s Secret Caught Live on Camera
Just recently Australia's "Seven News" was interviewing Macquarie Bank’s private wealth adviser Martin Lakos on the financial market's reaction to the Australian Reserve Bank keeping interest rates on hold. Bust as as Lakos spoke, viewers saw a man in the background open an e-mail and peruse a series of near-nude pictures of Victoria's Secret model Miranda Kerr.
Subsequently in a statement the bank said; "Macquarie takes matters such as the unacceptable use of technology extremely seriously. Macquarie has strict policies in place surrounding the use of technology and the issue arising from today's live cross on 7 News is being dealt with internally."
Subsequently in a statement the bank said; "Macquarie takes matters such as the unacceptable use of technology extremely seriously. Macquarie has strict policies in place surrounding the use of technology and the issue arising from today's live cross on 7 News is being dealt with internally."
Tuesday, 12 January 2010
Mobile Banking, the Future of Banking
Author: Pankaj Snv
Mobile Banking refers to provision and availability of banking and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information. Mobile banking is known by various other names. Through mobile banking, one can balance checks, complete his account transactions, make payments on time etc. via a mobile device such as a mobile phone. Most customers use mobile banking through SMS or the mobile internet. Some financial institutions take up another method to provide mobile banking to their customers. They make customers download special software on their mobile phones which acts as client for the mobile banking services.
Mobile banking is growing at a very fast pace and will soon become the primary channel for banks to connect with their customers. While the top banks have the financial and technical resources to make moves in the mobile channel, most mid-tier and small banks lack the innovation and funds needed to explore this front. Many of the largest banks have already launched mobile banking services, which are catching on with customers and generating positive business results. The past few months have brought a flurry of mobile banking announcements from mobile banking vendors who are responding to growing demand from their customers and the recognition of their own powerful position in the mobile banking vendor ecosystem.
Mobile banking technology vendors have a big role to play in helping mid-tier and small institutions take advantage of this emerging channel. Due to the increasing interest in mobile banking software, banks should deploy mobile banking software with confidence that their mobile banking vendors will provide the key to start the engine of mobile banking. Recent mobile banking announcements from technology giants represent the beginning of an evolutionary strategy with regard to integrating mobile banking more deeply into the banking infrastructure. As mobile banking software and payments evolve throughout the year, the associated mobile banking vendor ecosystem will change drastically. Mobile banking has reached a level of maturity that warrants action in the eyes of the mobile banking vendors.
Mobile banking is important to mobile banking vendors from the perspectives of both existing customers and new deals. The customers are eager to try out and use mobile banking capabilities, in large part because the top banks have made competitive inroads into the smaller banks' geographic markets. Pure-play mobile banking vendors have a hard time penetrating these smaller institutions because core banking vendors play the role of technology gatekeeper. It is quite possible that the core banking vendors will emerge as key players in the vendor ecosystem for mobile banking. In technology innovation, core banking vendors may not be trendsetters, but they are pacesetters. Because of their familiarity with banks' core operations, these vendors excel at seeing through the hype regarding new mobile banking software for banks and waiting to act until the market has matured to the point when innovation and profitability converge.
About the Author:"Pankaj Modi Says:" mobile banking software is one of the best solutions for time saving. Also the banking becomes easier, quicker and foolproof. For more Interest Visit:
http://www.bank-companion.com
Article Source: ArticlesBase.com - Mobile banking, the future of banking
Sunday, 10 January 2010
Is the Financial Crisis Really Over?
By Stanley Epstein - Principal Associate, Citadel Advantage
What is the risk of another financial crisis? The dust has begun to settle. The turbulent events of the past two and a half years seem to be over and the world is looking forward to a period of renewed stability and growth. Across most of the world there are plans afoot for the reform of the banking system to “fix” it so that the dreadful events that we were witness to so recently will not happen again.
2010 – The start of the second decade of the twenty first century is seen as a symbol of hope and a brighter future.
How realistic are these hopes? Is it possible to really repair the banking and financial system? Can we avoid any future pain such as we have seen (and alas are continuing to see)?
This is all good stuff, but realistically speaking the prospects for a quick “fix” are not at all good. In fact one need look no further than to the responses of governments and financial regulators to these recent events to see that the seeds of the next financial crisis have already been sown. And this crisis may not be so far in the future either.
Consider the facts. The overall response of governments and regulators alike to the recent financial crisis has sent a totally wrong message out to the banks. This misguided response has vastly increased the possibility that the same events will repeat themselves in the not too distant future.
To make matters worse, when the next crisis occurs countries may just not be able to take the strain. The events of recent days in Iceland regarding the reimbursement of the British and Dutch governments in the “Icesave Bank” saga and the ongoing financial problems in Greece are portents that the next crisis could be much, much worse.
The single distinguishing feature of the 2007-9 crisis was the huge amounts of financial assistance that was literarily thrown at the banks. Governments across the globe went almost berserk to avoid a systemic collapse of their individual country’s banking systems.
By taking this course of action governments simply reinforced the existent cavalier attitude of the banks. The banks who benefitted the most from the support of the state were in all probability the ones who presented the most serious risks to the financial system; the banks who should most probably been allow to go to the wall.
Because governments and regulatory authorities provided such massive assistance to banks and securities firms these governments have in effect created a sort of automatic disaster insurance fund. Bank executives now know that their banks will not be allowed to go under. This is going to lead the banking industry generally to their bad pre-crisis habits; habits of taking dangerous and unjustified risks once again, in the certain knowledge that that they will not be allowed to fail. “Too-big-to-fail” was (and is) the cry and governments have been all too eager to dance to this tune.
A factor which is so conveniently ignored is that for many banks across the globe the pain is not yet over. These banks are going to continue to experience losses for some time to come. These losses could still be extensive, as foreclosures continue to mount amidst a stagnating property market and continuing high levels of unemployment.
If governments could say with any absolute conviction that they would never, ever bail out another bank again, there would be some hope of averting a future crisis. However governments are fickle, driven by the winds of political opportunism.
When the crisis returns, as it surely must, we will see a replay of what we saw before. Indeed certain recent developments at some of the banking culprits from the last round are a clear indication that some banks are back to their bad old ways with massive profits and obscene bonus payments becoming the norm once again.
Clearly any attempts by various governments to “fix” the system have been a non-starter. To be brutally blunt – it has failed! And the same unfortunately applies too, to “fixes” that are planned. If they haven’t been started on yet the chances of them ever happening are less and less likely with each day that passes.
Unless governments and regulators seriously look at the failed systems and repair them properly in a manner that avoids the current implied guarantees of support “no matter what“, we are doomed to relive the events of 2007-9 again and again and again.
What is the risk of another financial crisis? The dust has begun to settle. The turbulent events of the past two and a half years seem to be over and the world is looking forward to a period of renewed stability and growth. Across most of the world there are plans afoot for the reform of the banking system to “fix” it so that the dreadful events that we were witness to so recently will not happen again.
2010 – The start of the second decade of the twenty first century is seen as a symbol of hope and a brighter future.
How realistic are these hopes? Is it possible to really repair the banking and financial system? Can we avoid any future pain such as we have seen (and alas are continuing to see)?
This is all good stuff, but realistically speaking the prospects for a quick “fix” are not at all good. In fact one need look no further than to the responses of governments and financial regulators to these recent events to see that the seeds of the next financial crisis have already been sown. And this crisis may not be so far in the future either.
Consider the facts. The overall response of governments and regulators alike to the recent financial crisis has sent a totally wrong message out to the banks. This misguided response has vastly increased the possibility that the same events will repeat themselves in the not too distant future.
To make matters worse, when the next crisis occurs countries may just not be able to take the strain. The events of recent days in Iceland regarding the reimbursement of the British and Dutch governments in the “Icesave Bank” saga and the ongoing financial problems in Greece are portents that the next crisis could be much, much worse.
The single distinguishing feature of the 2007-9 crisis was the huge amounts of financial assistance that was literarily thrown at the banks. Governments across the globe went almost berserk to avoid a systemic collapse of their individual country’s banking systems.
By taking this course of action governments simply reinforced the existent cavalier attitude of the banks. The banks who benefitted the most from the support of the state were in all probability the ones who presented the most serious risks to the financial system; the banks who should most probably been allow to go to the wall.
Because governments and regulatory authorities provided such massive assistance to banks and securities firms these governments have in effect created a sort of automatic disaster insurance fund. Bank executives now know that their banks will not be allowed to go under. This is going to lead the banking industry generally to their bad pre-crisis habits; habits of taking dangerous and unjustified risks once again, in the certain knowledge that that they will not be allowed to fail. “Too-big-to-fail” was (and is) the cry and governments have been all too eager to dance to this tune.
A factor which is so conveniently ignored is that for many banks across the globe the pain is not yet over. These banks are going to continue to experience losses for some time to come. These losses could still be extensive, as foreclosures continue to mount amidst a stagnating property market and continuing high levels of unemployment.
If governments could say with any absolute conviction that they would never, ever bail out another bank again, there would be some hope of averting a future crisis. However governments are fickle, driven by the winds of political opportunism.
When the crisis returns, as it surely must, we will see a replay of what we saw before. Indeed certain recent developments at some of the banking culprits from the last round are a clear indication that some banks are back to their bad old ways with massive profits and obscene bonus payments becoming the norm once again.
Clearly any attempts by various governments to “fix” the system have been a non-starter. To be brutally blunt – it has failed! And the same unfortunately applies too, to “fixes” that are planned. If they haven’t been started on yet the chances of them ever happening are less and less likely with each day that passes.
Unless governments and regulators seriously look at the failed systems and repair them properly in a manner that avoids the current implied guarantees of support “no matter what“, we are doomed to relive the events of 2007-9 again and again and again.
Friday, 1 January 2010
New Year - Welcome 2010
Welcome 2010! On this first day of the new year and the first day of the second decade of the 21st century we take a quick look at what folk on the street in London see and hope for (courtesy of The Economist).
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