felaban annual meeting baft-ifsa and felaban: building global bridges for the banking industry punta...
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FELABAN Annual Meeting
BAFT-IFSA and FELABAN: BUILDING GLOBAL BRIDGES FOR THE
BANKING INDUSTRY
Punta del Este, UruguayNovember 10, 2010
FELABAN Annual Meeting--Uruguay 2
BAFT-IFSA and FELABAN: BUILDING GLOBAL BRIDGES FOR THE BANKING INDUSTRY
November 10, 2010
Rita GonzalezVice Chair, BAFT-IFSA Board of
Directors
Managing Director and Head of GTB Institutional Sales
HSBC Securities USA
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Who we are
Over 200 members worldwide (majority non-U.S.)AfricaAsiaEuropeLatin AmericaMiddle East/North AfricaNorth America
Global, regional, local banks, import/export firms, service suppliers, law firms with banking and trade practices
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What we do
BAFT-IFSA provides advocacy, education and community – building opportunities for financial services institutions and suppliers around the globe. It is the leading forum for analysis, discussion and action amongst international financial professionals on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance.
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FELABAN Annual Meeting--Uruguay
Our Focus
Transaction BankingTradePaymentsCashDisciplines--compliance, risk management,
operations, technology, legal, regulatory – in support of product areas
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FELABAN Annual Meeting--Uruguay
Our Value Proposition
Cooperative Agreement with FELABAN Improve member profitability and efficiencyDialogue with policy makers and regulatorsRepresentation and updates on policy ,
regulatory issues and market trendsEstablish best practices, industry guidelines,
and standards; benchmark industry performance
Educate to improve member skill sets Provide forum for discussions on industry
trends November 10, 2010 6
FELABAN Annual Meeting--Uruguay
Member Activity
Members participate through --
Regional Councils BAFT-IFSA Latin America Council and FELABAN
Committees
Working Groups / Task Forces
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Products and Services – Three Pillars
Education
Advocacy
Community
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Industry Leadership
Dialogue with key leaders and stakeholdersCentral Bankers, Regulators, LegislatorsExport Credit AgenciesMultilateral Entities--WTO, World Bank, IMF, IFC, MDBsMarket Infrastructures
Position papers, comment lettersBenchmark surveys on global marketsStrategic advocacy / educational campaigns
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FELABAN Annual Meeting--Uruguay
Priorities and Achievements
Global and Regional Footprint
Industry Influence
Standards
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Key Global Initiative:Basel II / III
CHALLENGE: Basel Committee capital and liquidity recommendations unintended, adverse consequencesparticularly harmful to SMEs, emerging markets
RESPONSE:Comment letters representing industry worldwideEducational publications / media outreachMeetings with key regulators on workable solutionsCollaborative advocacy—cross-sector industry letter
international and national banking associations, industry groups
November 10, 2010
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Key Global Initiative:Advocacy on Solutions to Global Crisis
CHALLENGE: Global economic crisis / trade finance market dislocations
RESPONSE:Global forum
Educate major stakeholders (governments, ECAs, private credit insurers, multilateral agencies, banks)
Build consensus on resolving the crisis
Benchmark surveys with IMF on market dislocations
Position paper recommending solutionsIndustry voice with G-20, WTO, multilaterals,
policymakers, thought leaders
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Key Global Initiative: BAFT-IFSA/IMF Global Trade Finance
Survey
CHALLENGE: G-20, regulators, and industry need data on market dislocations
RESPONSE: BAFT-IFSA / IMF global survey results-- Trade finance activities stabilizing and demand-driven Larger banks more affected by credit-constraints Change in pricing mixed, but among factors affecting pricing,
institutions’ own increased cost of funds are less of a factor Basel II has adverse affects
SURVEY CIRCULATED BY FELABAN FOR BAFT-IFSA / IMF Responses due by November 26 New questionnaire results out by January 2011
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Key Global Initiative: Kazakhstan Crisis
CHALLENGE: Kazakhstan Banking Sector Crisis
RESPONSE: Coordinated communication and education on
international norms for trade finance treatmentOrganized industry response on regional impactAdvocacy Campaign
Prime Minister, President , Central Bank, Cabinet, diplomats
Organize coalition for letter to Kazakh leadersInternational Media
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Key Global Initiatives: Master Participation Agreement
CHALLENGE: Industry lacked master risk participation agreement for trade finance; inefficiencies in negotiating bilateral agreements
RESPONSE:Master Participation Agreement (MPA) -- industry
standard for trade risk participations -- English lawNew form of MPA to address “true sale” accounting
treatment under U.S. accounting principles -- New York law
BAFT-IFSA Legal Advisory Group--expert drafting groupEducate banks and regulators via webinar on benefits
November 10, 2010
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Key Global Initiatives: Transaction Banking Global Leaders
Senior leadership of largest transaction banksInfluential voice amongst stakeholders and
industryFocus on major industry issues Drive discussion between industry
stakeholders and regulators
Fraud -- Global information exchangeGlobal payments screening
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Key Global Initiatives: Global Trade Industry Council
Thought leadership for the international trade community
Focus on standards development, rules, universal tools and systems through advocacy and education
Assess industry needs and trends to advance advocacy and education
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Key Global Initiatives: Standards
“Ask the Experts” - documentary credit rules, global payments and trade, KYC/AML compliance standards
Master Participation Agreement Fraud and Utilities Initiatives (Transaction Bankers Global Leaders)
Supply Chain Group collaboration -- standard definitions for open account transactions
Council and committee collaboration on standard terms of reference for trade finance
Africa Payments Infrastructure Initiative Certified Documentary Credit Specialist (CDCS) Interbank Compensation Rules (updated 2010) Wire Transfer Extended Remittance Information
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Global Voice Newsletter
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On the Horizon
Global Economic Recovery Rebalancing of global trade -- South-South dominance Benchmarking surveys for industry and policymakers Public- / private- partnerships continue Collaboration with industry groups to spur full recovery KYC/AML costs affect “return to normal” and emerging markets
Basel II / III Trade finance capital treatment / liquidity Politics of implementation (global and national)
Emerging markets Regulatory harmonization “Cash is king”
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Join Us
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April 10 – 13, 2011BAFT-IFSA Annual Meeting
Palm Springs, California
