VC Seminar on Environment Assessment in Commercial Banks organized by AFDC
On the morning of October 25, 2011, the Environment Assessment Seminar for Credit Rating Officers in Commercial Banks was organized by the AFDC in collaboration with the World Bank, Tokyo Development Learning Center, Korea Development Institute and Sri Lanka Development Learning Center via videoconferencing. Over 100 participants from nine distance learning centers based in Vietnam, Japan, Korea, Nepal, Afghanistan, Sri Lanka, and the World Bank attended the seminar.
The seminar was moderated by Dr. Ji Rui of AFDC in Shanghai. It consisted of three sessions in two and a half hours’ timeframe. The first is a keynote speech by Ms. Valeria Garcia, senior financial specialist of the World Bank on the key issues, indicators and framework of environment assessment in commercial banks. She analyzed the fundamentals of credit risk assessment and pointed out the challenges for banks to conduct risk assessment in the post-crisis world. She then introduced the Basel III framework with particular emphasis on the changes made to banks’ regulatory framework. Nonetheless, regulation will never and is not expected to replace banks’ thorough risk assessment, she concluded.
Following her speech were three country case presentations from China, Japan and Korea. Prof. Xu Mingqi from Shanghai Academy of Social Sciences presented on the importance of macroeconomic assessment in banks’ internal credit rating and talked about macroeconomic assessment from the perspective of regulators and banks. He also shared with participants China’s progress of implementing Basel III. Mr. Koji Sakuma from Japan Institute for International Monetary Affairs had an in-depth analysis of Japan’s problem and the possible measures for tacking it. Mr. Dongsoo Kang from Korea Development Institute introduced to the participants Korean financial supervisory system and risk management system of banks with an example on the implications of 2008 global financial crisis on Korean banks.
The participants, who came from a wide background of bankers, regulators, government officials and researchers from the above countries, had active exchanges with the speakers on the topic.