Annotated Agenda of Workshop on Strengthening Corporate Governance within Financial Institutions
May 19-22, 2004
Shanghai National Accounting Institute Shanghai, P.R.China
Module I: Corporate Governance within Banking Sector
Wednesday, May 19
Opening Session
Co-organizers for this workshop will deliver opening speech.
Session 1: Overview of OECD Principles and Corporate Governance within Banking Sector
This session will lay out the latest developments in corporate governance within banking sector in the APEC region and around the world and introduce OECD principles of good corporate governance, the current international financial architecture, and the role of financial institutions in promoting good corporate governance. The main challenges faced by APEC economies for strengthening corporate governance within banking sector will be also discussed.
Session 2: The Regulatory Framework and Government's Role in Improving Corporate Governance within Banking Sector
The financial institutions, especially banks, have their own special characteristics. The failure will have a systemic dimension. Furthermore, the principal and agent relationship in banks is more complicated. Therefore, the corporate governance in banking sector is something different from other sectors, where the depositors and public interest should be paid more attention. This session will discuss how to improve the regulatory framework, strengthen the market disciplines on financial institutions, deliver explicit and implicit government support for financial institutions and promote efficient financial markets. The government’s role in improving corporate governance within banking sector will be highlighted.
Session 3: Panel Discussion: Experience sharing of Corporate Governance in Central Banks
Good corporate governance is important not just for market participants, but also for regulatory and supervisory authorities. The sound corporate governance practice in supervisory agencies is fundamental in improving corporate governance within the whole banking sector. Through panel discussion, experience sharing of corporate governance in central banks from different economies such as P.R.China, Indonesia and Canada will be realized in this session.
Session 4: Compliance, Business Ethics and Corporate Governance within Banking Sector
Ethics is what we do because it is "right", an inner sense of integrity and good judgment. The conformance and compliance focus in the boardroom is imposed upon directors to avoid penalties under the law. The law merely creates a challenge to those with poor judgment. The values, culture, political sensitivity and management style of directors is the key to effective governance. No legislation will replace the basic requirement for strong business ethics, intellectual honesty and integrity in the boardroom. This session will address different culture, value and political sensitivity which will affect the corporate governance. Anti-corruption methods will also be discussed in this session.
Session 5: Panel Discussion: Sound Corporate Governance Practices in Banks: Basel 2
The new Basel 2 Accord comes at a time when banks and regulators in the region continue reforms after the Asian financial crisis and when governance arrangements are seen as being central matters on the reform agenda. Basel 2 represents some additional challenges for banks. It will require banks to better manage (and price) risk and capital and improve market disclosure. Banks and regulatory agencies will have a need to review their governance arrangements, desirably against some valuable benchmarks reflecting the essence of sound practices and highest ethical standards. The session will consider how benchmarks might best be developed specifically for the banking sector in the context of Basel 2 (drawing on, inter alia, the OECD Asian White Paper), how they might be promoted in regional banking systems, and their relevance more broadly to improving corporate governance in the region.
Thursday, May 20
Session 6: Case Study: Corporate Governance in APEC Economies: Korea Experience and Lessons Learned
The case study will focus on the accomplishments achieved by Korea and the challenges it faces in overcoming the problems. This session will be a short briefing on what are the major developments, and will focus on what are the aspects which Korea need to focus on to strengthen the bank corporate governance.
Session 7: Case Study: Corporate Governance in APEC Economies: HKSAR Experience and Lessons Learned
The case study will focus on the accomplishments achieved by the Hong Kong Special Administration Region(SAR), China, and the challenges it faces in overcoming the problems. This session will be a short briefing on what are the major developments, and will focus on what are the aspects which HKSAR need to focus on to strengthen the bank corporate governance.
Session 8: Case Study: Internal Control Systems in Commercial Banks
In this session, real life cases will be introduced and discussed. The case study will focus on experience and lessons regarding to the governance structure in this bank.
Session 9: Case Study: Governance Structure in Commercial Banks
In this session, real life cases will be introduced and discussed. The case study will focus on experience and lessons regarding to the governance structure in this bank.
Session 10: Group Discussion and Report
In this session participants will be divided into groups to discuss and prepare brief notes to a specific issue based on the participant's economy experiences. And coordinators from each group will report their findings.
Module II: Challenges for the Asian Insurance Industry Arising from International Accounting Standards
Friday, May 21
Session 1: Setting the Scene
Official opening
Opening address - International Trends in Financial Reporting
Presented by a leading partner in a major accounting firm
Session 2: International Accounting Standards for Insurance Contracts
A high level review of the principles behind the new standard published in March 04 (i.e. Phase I) and the expectations in Phase II
Presented by a speaker from the IASB
Session 3: What does Phase I/the New Standard Mean?
3 Presentations from different companies in 3 different economies
Q&A with the IASB
Session 4: What are the immediate pressure points?
How can Phase I be introduced? A speaker with experience from Europe What will it mean for the financial markets with the new disclosure?
An example of some illustrative financial statements
Saturday, May 22
Session 5: Links to corporate governance
How do the disclosure changes in Phase I relate to improved corporate governance?
Session 6: The regulator's perspective on the new directions
Presentations from 2 or 3 insurance regulators in the APEC region
Session 7: Phase II for Insurance Contracts
What are the current plans?
Speakers from the IASB and a practising consultant.
What are the difficult issues?
Session 8: Going forward - Strategic issues
What impact should/could these changes have on strategy?
