dnb international workshop and seminar programme 2014 Bringing knowledge and people together
dnb International Workshop and Seminar Programme 2014
Content 3 Foreword 5 DNB International Seminar Programme 2014 - overview 7 Administrative information 11 Address and telephone numbers 13 Route description 15 Description of 2014 seminars 15 Financial stability 17 Auditing, governance and risk management at the highest 19 Accounting, planning and control, risk and process management in a central bank 21 Payments and securities settlement systems 23 Insurance supervision 25 Operational monetary policy 27 The Basel III international capital and liquidity framework 29 Technical Cooperation by De Nederlandsche Bank in numbers 31 About us 1
Aerdt Houben Carel van den Berg
Foreword It is a great pleasure to present to you the annual DNB International Workshop and Seminar Programme for 2014. Over the years, our seminar programme has evolved into a programme with interactive and high-level workshops and seminars with room for an open exchange of ideas, focusing on current issues in the policy and operational domain of central banking and supervision. Our Programme is targeted at officials of central banks and prudential supervisors at the senior and executive level, and in some cases also at junior level. In 2014 our Financial Stability workshop will take the special form of a high-level one-day conference with top-level speakers from international organisations. It is recommended to put the date already in your agenda! The still on-going distress in the financial markets has forcefully reminded central banks and regulators of their core tasks: strengthening financial stability, implementing monetary policy also under difficult circumstances, increasing payment systems reliability, making prudential supervision more effective, setting high standards for internal governance and enhancing international cooperation. This challenging environment underscores the importance for central banks and supervisory authorities of taking well-informed decisions based on state-of-the-art practices and analytical tools. In our Programme we also pay attention to the challenges of operating as a lean and mean organisation, with efficient procedures and optimal use of scarce resources. The 2014 DNB International Workshop and Seminar Programme offers seven seminars, all hosted in Amsterdam. An important characteristic of our Programme is that all workshops and seminars are delivered by experts that work on the relevant topics on a daily basis be it at DNB or international organizations, bringing with them a unique practical dimension and knowledge of current developments. Our aim is to offer high-quality training and to familiarize participants with best practices and new trends. Since participants will be invited to join discussions and share their views, a good command of English is required. Experience has shown that the DNB International Workshop and Seminar Programme is an excellent way to learn and build valuable contacts with experts from central banks and supervisory authorities in different countries and continents. As in previous years, DNB will also organise a number of seminars for an international audience outside the Netherlands. DNB relies on the generous support of hosting central banks to help organise these regional events. In 2014, we aim to cover such subjects as Payment and securities settlement systems to be held in Macedonia, the day-to-day practice of risk-based supervision to be held in Romania and ICT supervision to be held in Moldova. DNB also actively offers technical cooperation to central banks and prudential supervisors on a bilateral basis and as a partner in large-scale projects coordinated by international organisations. In addition, at DNB s request, the Duisenberg School of Finance offers a top-level academic course for central bankers and regulators of the Netherlands IMF Constituency member countries with lecturers from top universities in the US and Europe. An overview of all activities of Technical Cooperation is contained in the last section of this brochure. At DNB, we are grateful that so many institutions delegate staff to participate each year, and we are looking forward to welcoming new participants from emerging markets and transition economies in our 2014 programme. Aerdt Houben Director Financial Stability Division Carel van den Berg Coordinator Technical Cooperation Centre 3
dnb international workshop and seminar programme 2014 Period Seminar 12 February Financial stability high-level conference 12-14 May Auditing, governance and risk management processes at the highest organisational level 16-18 June Accounting, planning and control, risk and process management in a central bank 22-25 September Payments and securities settlement systems 20-21 October Insurance supervision 5-7 November Operational monetary policy 24-26 November The Basel III international capital and liquidity framework This brochure provides a detailed description of the individual seminars (workshops), setting out objectives and content as well as the qualifications expected from participants. All seminars will be in English. A sufficient command of the English language is required, as translation and interpreting services will not be offered. GENERAL PURPOSE The programme has two aims: To present recent developments in specific central banking issues from the perspective of the Nederlandsche Bank, as a member of the European System of Central Banks. To exchange views on specific central banking issues in order to learn from each other s experiences. This implies that the precise content of the seminars will be determined in part by the specific wishes of the prospective participants. We welcome any comment on the content of the seminar. During some of the seminars participants might be invited to give a presentation on topics in their field of expertise. WHO? The seminar programme has been set up for staff at the central banks and prudential supervisors in the countries that make up the IMF/World Bank constituency headed by the Netherlands. However, we may also invite other central banks or prudential supervisors to attend individual seminars; this will be determined on a case-bycase basis. 5
Administrative information How to apply This programme has been sent to the governing boards of selected central banks and prudential supervisors, inviting them to participate in DNB s annual International Seminar Programme. If you wish to enrol members of your institution in a seminar, please complete the online registration form at: www.dnb.nl/about DNB/co-operation/ International Seminar Programme using the link to 2014 International Seminar Programme - Registration Form. Completed forms should be sent in at least two months prior to the start of any seminar. Given the limited number of available places, participation is restricted to one or two representatives per country. The maximum of 25 participants per seminar may be changed to suit the specific purpose of each seminar. If there are more applications than there are places available, we will have to make a selection and we trust that you will understand if an application from your institution is turned down. Correspondence All subsequent correspondence will be send directly to participants, who will receive a letter of invitation by e-mail and by post. To ensure that the necessary formalities are completed in time, we will send this information four weeks before a seminar starts. Security Due to strict security regulations, participants will be required to carry a recognised identification document at all times when on the premises at DNB. Please register the type of identification document (e.g. passport) and its number on our registration form. Seminar length Seminars will usually last three days, with course times from 9am to 5pm. Please note that participants are expected to attend all courses and we would therefore not recommend scheduling any appointments that might result in missing part of the seminar. Participating central banks will be notified of poor attendance by their representatives. Costs Seminar participation is free. DNB will provide accommodation, breakfast and lunch and will bear the costs of any dinners and social events scheduled. Participants are assumed to have adequate insurance cover for medical treatment abroad. 7
LOCATION DNB provides free single accommodation centrally located in Amsterdam for the duration of the seminar, starting at the night before the seminar to the night after e.g. four nights fo a three-day seminar. The letter of invitation will ask participants to communicate arrival and departure times, and DNB will make hotel reservations in keeping with the travel information provided in the registration form. In the event of a change in itinerary, DNB will try to accommodate your request but cannot offer any guarantees. Participants will subsequently receive more detailed information about accommodation and transfer arrangements. The Nederlandsche Bank regrets that it is unable to provide accommodation for participants partners or other family relatives. Cancellation If you need to cancel, please make sure to inform us at least five days in advance, preferably longer (technicalcooperation@dnb.nl). Given the large number of applications, a late cancellation deprives others of the opportunity to attend the seminar and may involve hotel cancellation costs. If De Nederlandsche Bank has to pay no-show costs, this will be charged on to the central bank involved. 9
Address and telephone numbers De Nederlandsche Bank N.V. PO Box 98 1000 AB AMSTERDAM Westeinde 1 1017 ZN AMSTERDAM The Netherlands General telephone number: +31 20 524 9111 WHOM TO CONTACT Coordinator Technical Cooperation Mr Carel van den Berg Phone: +31 20 524 2139 Fax: +31 20 524 2526 E-mail: c.c.a.van.den.berg@dnb.nl or technicalcooperation@dnb.nl Secretariat Technical Cooperation Ms Denise Wijnschenk Phone: +31 20 524 3336 Fax: +31 20 524 2526 E-mail: technicalcooperation@dnb.nl Travel and conference services Ms Isabella Ciocca Phone: +31 20 524 5757 Fax: +31 20 524 2519 E-mail: evenementen@dnb.nl Ms Linda van Reenen Phone: +31 20 524 3615 Fax: +31 20 524 2519 E-mail: evenementen@dnb.nl 11
How to get to the city of amsterdam from schiphol amsterdam airport TAXI There s a taxi stand just outside the International Arrivals Building. It s a 30-minute drive to the city centre depending on traffic and a taxi will cost around EUR 45. BUS KLM Airlines operates a shuttle service between Schiphol Airport and most of the larger hotels in Amsterdam. For information on departure times and where to board the shuttle, please refer to the KLM information desk at the International Arrivals Building. It s a 30-minute drive to the city centre depending on traffic and tickets cost approximately EUR 15. For more information please check the website: www.schipholhotelshuttle.nl TRAIN There is an underground railway station at Schiphol Airport, with regular services to Amsterdam Central Station. Trains leave every 15 minutes or so and take 20 minutes to reach the city centre. The fare is approximately EUR 6.50. From Amsterdam Central Station, you can take a tram or bus to your hotel accommodation. Please note that when using the Amsterdam underground (metro) you need to buy a ticket (EUR 2.60) from the vending machine before boarding a train. 13
Financial stability 12 February 2014 Purpose of the workshop For 2014 we offer a high-level workshop on financial stability in the form of a one-day conference with introductions by senior officials from international organizations (IMF, ECB) and national central banks. The workshop is intended exclusively for board members responsible for financial stability. It offers a unique forum where senior representatives can enjoy cutting-edge presentations by peers in the central bank and international community and discuss domestic experiences and challenges in the field of financial stability. We envisage three main themes for discussion, each introduced by two high-level speakers. The conference will be opened by Klaas Knot, President of DNB. All delegates are invited to a formal dinner after the conference. Details of the speakers will be posted on our website in due course. Participants Board members of central banks with responsibility for the area of financial stability. Good knowledge and expertise in the area is required. The conference and discussion are conducted in English. Limited admission. Content Main topics to be discussed: Asset Quality Review & stress testing Bank resolution Macroprudential instruments Contact information Should you have any questions or require additional information, please do not hesitate to contact Mr Jan Willem Slingenberg (j.w.slingenberg@dnb.nl) and Mr Carel van den Berg (c.c.a.van.den.berg@dnb.nl) of the Financial Stability Division and the Technical Cooperation Centre. 15
Auditing, governance and risk management processes at the highest organisational level 12-14 May 2014 Deadline for application: 17 March 2014 Purpose of the seminar According to the definition of the Institute of Internal Auditors (IIA), an organisation s internal audit department should help it accomplish its objectives in the areas of governance processes and risk management. The most recent version of the International Standards for the Professional Practice Framework, which entered into effect on 1 January 2013, stipulates that internal audit departments must also evaluate the achievement of their organisation s strategic objectives. These changes have an impact on auditable objects such as governance and risk management and require a different audit approach compared to auditing risk management at the organisation s operational level. This seminar focuses on governance and risk management processes and the internal audit department s role when auditing these processes at strategic top level in the organisation. It will also focus on practical approaches such as interviewing board members and members of audit committees or similar bodies and will teach how to add value to governance and risk management processes from a strategic management perspective. Target group Auditors at all levels who wish to: enhance their knowledge and understanding of what is expected from auditors in governance and risk management processes in general; add value to the board and audit committee; and discuss potential best practices with colleagues. Key topics Relevant IIA standards Governance and risk management at strategic level Value added reporting to top management Interviewing top management CPE credits Participants with a professional designation will receive 18 CPE credits for full participation. Contact information Should you have any questions or require additional information, please do not hesitate to contact Mr Rob Cornelisse (r.e.cornelisse@dnb.nl) or Ms Rowena Overkleeft (r.f.overkleeft@dnb.nl) of the Internal Audit Department. During this seminar, participants will be presented with case studies. Active participation is required. 17
Accounting, planning & control, risk & process management in a central bank 16-18 June 2014 Deadline for application: 21 APRIL 2014 Purpose of the seminar The seminar provides an opportunity for central bank representatives to share experiences and knowledge on accounting, planning & control and risk & process management. DNB aims at improving its organisation in terms of effectiveness and efficiency. The seminar focuses on the efforts and experiences of DNB s Finance department to contribute to the realisation of these improvements. In our view the main role of the Finance department in this effort is to contribute actively to sound decision-making and steering of the central bank. Its method of working can be typified by straightforwardness, transparency and partnership. Main building blocks of the approach applied are the promotion of a vital organisation as well as a permanent focus on improvement of its services. Key topics Strategy, planning and control Activity based costing Accounting principles Process management Operational risk management Contact information Should you have any questions or require additional information, please do not hesitate to contact Ms Phuocie Le (n.p.le@dnb.nl) of the Corporate Affairs and IT Division. Set-up of the seminar Following last year s successful new set-up, we will provide participants with an overview of parallel sessions prior to the seminar. They will be asked to indicate which of the sessions they prefer to attend. The set-up of the seminar is interactive: participants are expected to actively take part in the workshops and presentations that they attend. Knowledge sharing among participants is a major component of the seminar. Target group Heads and senior staff members of controlling, accounting, planning & control and risk & process management departments. 19
Payments and securities settlement systems 22-25 September 2014 DEADLINE FOR APPLICATION: 28 JULY 2014 Purpose of the seminar The seminar gives an overview of the most recent developments in payments and securities settlement systems not only from a market development angle, but also from the perspective of a modern central bank with its roles as policymaker, overseer and service provider. The field is reshaping rapidly and central banks need to be pro-actively engaged. The focus is more and more on global developments, including those in the European context, in which De Nederlandsche Bank is closely involved as a member of the European System of Central Banks. Attention is paid to the work of BIS-IOSCO in setting international standards for financial market infrastructures. Furthermore, fundamental changes of market infrastructures and innovations occur in the areas of retail payments, large value payments and securities settlement. These changes will have a definite impact on the future structure of the European banking industry and on the functioning of central banks. This holds even more for those countries which expect to join the European Union, but also for transition and emerging market countries. The seminar will include plenary sessions as well as smaller scale workshop-style activities. In addition, we will visit a financial institution. From the participants, an active contribution to an open discussion and a willingness to share their own experiences will be expected. The four-day seminar will include a social event and some sightseeing of the Netherlands. Target group Management and senior staff from departments involved in payments and securities, i.e. payments and securities settlement systems departments, financial markets departments, legal departments etc. Content The following key topics will be covered: General framework and large value payment systems (LVPS) o The central bank s role in payments and securities settlement systems o Developments in LVPS and experiences with TARGET2 o Global developments Collateral management and securities settlement systems o Developments in collateral and liquidity management o The world of securities settlement systems and the role of Central Counter Parties o Developments of TARGET2-Securities Retail payments o Developments of the single euro payments area (SEPA) after the end-date of the SEPA Regulation (1 February 2014) o European law on payments o Statistics and research (the central bank as a knowledge centre) o Innovations of retail payments o Efficiency, security, accessibility and reachability of retail payments o The involvement of all stakeholders in retail payments systems and the work of the National Forum on the Payment System. Oversight on the payment system o Oversight strategy o BIS-IOSCO Principles for Financial Markets Infrastructures and other oversight standards o Business continuity and crisis management for payments and securities settlement systems Contact information Should you have any questions or require additional information, please do not hesitate to contact Mr Michiel van Doeveren (m.a.j.m.van.doeveren@dnb.nl) or Ms Judith Looman (j.looman@dnb.nl) of the Cash and Payment Systems Division. 21
Insurance supervision 20-21 October 2014 DEADLINE FOR APPLICATION: 25 Augustus 2014 Purpose of the seminar De Nederlandsche Bank (DNB) offers an insurance supervision seminar every other year. The upcoming seminar will deal extensively with risk-based supervision and reinsurance, while also covering two new topics, i.e. fit & proper testing and group supervision issues. DNB s experience with insurance supervision dates back to the start of the previous century. Its current approach to supervision is based on a risk-oriented methodology. DNB has developed a new supervision philosophy which is risk-based and supported by the FOCUS method. The methodology contains a top-down approach of all relevant risks and provides insight into macro risks and an organisation s risk profile. Content Organisation of supervision of insurance companies in the Netherlands Supervision philosophy, risk identification and risk mitigation methodologies; which are the new developments and how do they work? Valuation of assets and liabilities Group supervision Fit & proper testing Reinsurance issues Contact information Should you have any questions or wish to find out more about the seminar, please do not hesitate to contact Mr Edmond Valentijn (e.f.valentijn@dnb.nl), Supervisor at DNB. Current developments will take a central place in all of these, i.e. market developments in the insurance sector and preparations for the implementation of Solvency ll. During the seminar there will be ample time to discuss the individual participants daily practice. Target group Management and senior staff of insurance supervisors 23
Operational monetary policy 5-7 November 2014 DeaDLINE FOR APPLICATION: 10 September 2014 Purpose of the seminar The Operational Monetary Policy seminar covers conventional and unconventional Eurosystem central bank operations. Since the start of the credit crisis in 2007 and the sovereign debt crisis in 2009 numerous monetary instruments have been used. Experiences with the implementation of these crisis instruments and unconventional monetary programmes, like VLTROs, SMP and CBPP, will therefore be covered extensively. In the category of conventional tools we will cover the fundamentals of and implementation experiences with open market operations, operational procedures and institutional arrangements within the Eurosystem. The Dutch State Treasury Agency will share its view on matters related to debt and cash management. Participants will also visit one of the larger Dutch commercial banks, where experiences with operational monetary policy from a private sector perspective will be shared. A visit to the bank s trading floor is included. Participants will be expected to discuss their central bank s experiences with monetary policy implementation and their current challenges on monetary policy (implementation) issues. Target group Central bank staff members, practitioners, involved in monetary policy implementation (e.g. tenders, liquidity forecasting and/or collateral management issues). This seminar is especially suited for relatively new staff members in this area of expertise (one or two participants per country). Content The following key topics will be covered: Purpose and objectives of monetary policy strategy and implementation Overview of monetary policy instruments of the Eurosystem, i.e. open market operations, standing facilities and reserve requirements Aspects of instruments: bidding procedures in the tender systems, collateral issues, risk control measures Experiences of Eurosystem s monetary policy implementation, particularly those during the crisis (including unconventional measures) Liquidity management Euro area money market: cross-border transactions, market structure Relationship between the ECB and NCBs regarding monetary policy Relationship between front and back office with an emphasis on the TARGET2 payment system Public debt and cash management of the Treasury Financial market monitoring and market intelligence Contact information Should you have any questions or require additional information, please do not hesitate to contact Mr Marck Bulter (m.c.j.bulter@dnb.nl), Policy Advisor of the Treasury and Monitoring Department within the Financial Markets Division. 25
The Basel iii International Capital and Liquidity Framework 24-26 November 2014 DEADLINE FOR APPLICATION: 13 october 2014 Purpose of the seminar Since 2010, when the Basel Committee on Banking Supervision (BCBS) finalised the capital and liquidity reform proposal addressing the lessons of the crisis related to regulation, supervision and risk management of banks, work on these topics has progressed and the BCBS has issued adjustments to the 2010 rules. The purpose of the package and the subsequent publications is to increase the quality, quantity and international consistency of capital, strengthen liquidity standards, discourage excessive leverage and reduce procyclicality. Basel III became gradually effective in 2012. In Europe the framework is established in the Capital Requirements Directive and Regulation (CRD/ CRR) IV. With a view to sharing experiences, De Nederlandsche Bank will organise a seminar concerning Basel III. The seminar will focus on both theory and practice where possible. Apart from Pillar 1 and Pillar 2 risks of Basel II and Basel III, we will cover our own experience with supervision. In addition, our approach to the Supervisory Review and Evaluation Process and stress testing practices will be addressed. We will share our experiences at DNB and look ahead at the supervisory tasks under the new central supervisor for the Euro area, the Single Supervisory Mechanism. Target group Heads and senior staff members of supervisory departments (one or two participants per country). Content The following key topics will be covered: General outline of Basel III Liquidity risk (LCR, NSFR) Capital under Basel III Credit risk Interest rate risk Market risk Stress testing Capital planning Funding plans Business risk and strategic risk Contact information Should you have any questions or require additional information, please do not hesitate to contact Mr Ewout van Ommen (E.W.van.Ommen@dnb.nl) of the Supervisory Policy Division. To present the full picture, for each topic we will discuss the theoretical background, implementation process, empirical results and lessons learned. The seminar covers the overall implementation project by the supervisor, the adjustments of the supervisory working programmes and the experiences in practice. The aim is to contribute to making supervision more intrusive and proactive. 27
Table 1: Overview of activities Events in Amsterdam 2012 Number of Amsterdam event 40 Number of participants 318 Number of central banks 45 Events abroad 2012 Number of abroad events 42 Number of participants 760 Number of central banks 30 Total number of participants 1078 Total number of central banks 49 Chart 1 Breakdown of DNB ac;vi;es in 2012 11% 9% 4% InternaJonal seminars/workshops in Amsterdam InternaJonal seminars/workshops abroad Expert advice/study visits abroad Study visits to DNB 37% 39% Eurosystem/thirdparty funding Measured as percentage of total number of events Chart 2 Countries most accve in parccipacng in events in Amsterdam in 2012 14 12 10 8 6 4 2 0 Number of Zmes a country has parzcipated in an event (bilateral visit, workshop, internazonal seminar) in Amsterdam Chart 3 Breakdown according to business area in 2012 25% 28% Internal central bank funcuon (HR, internal audit, planning and control, finance, ICT and governance) Payments and securiues sewlement systems and banknotes 15% 32% Macro- economic areas, financial stability and financial markets PrudenUal supervision of banks, insurance companies and pension funds Time spent by DNB experts for technical coopperauon
Technical Cooperation by De Nederlandsche Bank in numbers De Nederlandsche Bank (DNB) was established in 1814. It is the central bank of the Netherlands. Since 1952 DNB has been responsible for banking supervision. In 1999 the Netherlands was among the first countries to adopt the euro and since 2004 DNB has also been responsible for the prudential supervision of insurance companies and pension funds. DNB attaches great importance to being both an efficient and an effective institution, by optimizing and modernising its own processes. It has accumulated a wealth of experience and knowledge in central banking and supervision, which it has always been willing to share with central banks and supervisors in the wider international community. In 2012, DNB provided Technical Cooperation to central banks and supervisory authorities of around 49 countries. Most of the technical cooperation is provided to the twelve countries that are members of the IMF constituency headed by the Netherlands (since October 2012 headed together with Belgium). (As the brochure is printed in October 2013, no full-year numbers are available over 2013.) DNB also attaches great importance to building relationships with central banks in other transition and emerging market economies. In 2012, DNB Technical Cooperation organised seven international seminars in Amsterdam and three seminars with international attendance abroad. Furthermore, the Duisenberg School of Finance in co-organisation with DNB s Technical Cooperation organised two high-level international academic seminars, one in Amsterdam and one in Ukraine. The international seminars held abroad were hosted by the local central bank. In total 155 persons participated in these international seminars. DNB Technical Cooperation also organises events in the Netherlands for training of staff of individual central banks or supervisors on a bilateral basis. In 2012, DNB Technical Cooperation organised 30 bilateral events in the Netherlands and 32 in other countries. A total of 144 DNB staff spent part of their time on providing training to foreign colleagues. In 2012, 1078 staff of central banks and supervisors participated in bilateral assistance programmes and/or in visits in the context of third-party funded programmes. We have built a long-term relationship with many central banks which helps us to provide tailor-made expert advice, usually in the form of one or several short visits. 29
About us The Technical Cooperation Centre is responsible for coordinating the TC activities of De Nederlandsche Bank. It is responsible for planning, logistics, financing, monitoring and evaluation of the activities, in cooperation with the bank s Events and Travel Unit. The Centre was set up in 1998, after the membership of the Dutch IMF constituency had increased to thirteen, 1 many of which were countries in transition from a state-led to a marketled economy. Long-term relationships have developed; for instance, over 1,600 staff of the central bank of Ukraine have been trained by DNB since 1999. In the technical cooperation model used by DNB, the expertise is not provided by the Technical Cooperation Centre itself, but by experts from DNB who work in the relevant area. To this end, all business areas earmark a certain amount of time for technical cooperation in each calendar year. Each business area appoints a contact person, who has an overview of the available expertise and the availability of experts. Each year, more than hundred experts provide technical assistance, in a total of around 100 events or missions. Each November the Technical Cooperation Centre publishes a brochure containing the DNB seminar programme for the next calendar year. The DNB International Seminar Series have existed since 1999. Management Carel van den Berg Secretariat Denise Wijnschenk Travel and Conference Services Isabella Ciocca 1 Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, the Republic of Macedonia, Moldova, Montenegro, the Netherlands, Romania, Ukraine. In October 2012, Belgium (co-chair) and Luxembourg were joined. 31