Working Party on Financial
Statistics (WPFS):
Briefing on the meeting of the
OECD Committee on
Financial Markets (CMF)
6-7 October 2010
Gert Wehinger
Economist
Financial Affairs Division
OECD Directorate for Financial and Enterprise Affairs
(DAF/FIN)
30 November 2010
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Highlights
 Interesting first review of Russia
 Sovereign debt challenges discussed in Financial Roundtable
with the private sector and in Tour d’horizon discussion
 First Policy Dialogue on Financial Markets with Southeast
Asia
 Support for work by Working Party on Financial Statistics –
but governance?
 Work on financial safety net issues and financial group
structures
 2011 Programme of Work (POW); 50th anniversary events
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Review of Russia
 First review of Russia held on 6 October (closed session).
 A well-prepared Russian delegation replied openly and
comprehensively to the Committee’s questions.
 Broad areas where legislative or policy action will be needed
were identified, i.a. state ownership, conflicts of interest, the
absence of consolidated supervision amid widespread related
party transactions, securities supervisor’s lack of
independence; limitations on foreign bank access; lack of
trust in the rule of law.
 Follow-up: Chair’s letter to Russian authorities outlining broad
areas where legislative or policy action is needed; CMF
Delegates to finalise a list of specific recommendations at
April 2011 meeting
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Sovereign debt challenges
 Discussed with private sector at OECD Financial Roundtable
and in regular Tour d’horizon session. Invited WPDM report
 Shortcomings in market measures of sovereign risk
 Rating agencies in a difficult position, but provide guidance
 Sovereign default (debt restructuring) is probable (also: WP)
and ways to deal with it need to be considered – broad official
backing is essential to minimise fallout (costs of default)
 Countries concerned underlined that adjustment measures
already taken in response to the sovereign debt crisis seem to
be showing positive effects and emphasised that there will be
no default
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Southeast Asia
 First time Policy Dialogue on Financial Markets with
Southeast Asia (following up on EE5 PD Oct. 2009),
confirming the new proactive CMF outreach strategy
(including for EE and along Council guidelines). PD format
facilitates two-way dialogue - lessons to be learned for OECD!
 Representatives from Singapore, the Philippines, the ASEAN
Secretariat and the Asian Development Bank discussed
challenges posed by capital inflows addressed by exchange
rate flexibility and macro prudential measures; temporary
capital control measures may be contemplated. The scope for
further regional co-operation to enhance SEA financial
markets and regulation was assessed.
 Possibilities for further co-operation with the CMF; follow-up
co-operation with ASEAN and ADB is planned.
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Statistical work
 Discussion on joint CMF-WPFS report: CMF acknowledged
budget constraints but expressed support for statistical work
conducted by WPFS
 Asked to specify budget needed and to look into alternatives,
e.g. private data providers (currently available: Thomson
Reuters Datastream & T1; FT/The Banker; Bureau van Dijk);
asked not to duplicate work
 Will consult with officials in capitals regarding the viability of
the Bank Profitability database and other proposals for data
improvements, and whether the governance arrangements for
the WPFS should allow for more input from the Statistics
Committee (discussed were phasing-in; 2-yr reviews)
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Committee on Financial Markets
Participants
• High-level staff from finance ministries, central banks of all
member countries as well as the
• European Commission, including representatives of the
European Central Bank (ECB)
• Representatives of international organisations:
BIS, EIB, IMF, World Bank
• Hong Kong, China (observers)
• Russia, Singapore and EE5 countries (ad-hoc observer)
Working Party on
Financial Statistics
Co-operation with
private sector:
OECD Financial
Roundtables
Working Party on
Debt Management
Co-operation with
other institutions
and bodies: e.g.
G20, FSB, IOSCO
Co-operation with other
OECD Committees, e.g.
Insurance and Private
Pensions Committee
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Core objectives of the CMF
Overarching
objective
• “Promote efficient, open, stable & sound
market-oriented financial systems, based on
high levels of transparency, confidence, and
integrity”
By:
• Improving the efficiency and effectiveness of
financial regulation
• Promoting the contribution of financial markets and
institutions to economic growth
• Improving the capacity of financial markets and
individuals to respond to challenges of ageing
• Improving financial education and awareness
• Promoting market access and the liberalisation of
international trade in financial services
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‘Flagship publication’
OECD Journal: Financial Market Trends
also open for WPFS!
•
Financial Market Trends provides regular updates of
trends and prospects in the international and major
domestic financial markets of the OECD area and
beyond. It provides timely analysis of and
background information on structural issues and
developments in financial markets and the financial
sector, focusing on areas where changes are most
substantial. Topics include financial market
regulation, bond markets and public debt
management, insurance and private pensions, as
well as financial statistics.
•
Comments and questions should be addressed to the OECD
Financial Affairs Division (fmt@oecd.org, permanent url for this page
www.oecd.org/daf/fmt).
•
Purchase a subscription to this journal from the OECD Online
Bookshop.
•
Access to all articles for subscribers to iLibrary.
www.oecd.org/daf/fmt
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Structural issues
 Following up on previous work on financial safety nets, the
CMF discussed a report on “Funding systemic crisis
resolution”, analysing recent proposals and approaches
adopted to finance systemic crisis resolution;
 Directed the Secretariat to expand the work and to conduct
comparative analyses
 CMF discussed financial group structures focusing in
particular on the range of incentives and the link between
government failure and market failure.
 Expressed support to continue work in this areas.
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Work Programme
 Agreement on planning of 2011 POW along the lines of main
three new structural CMF priorities: growth, society/individuals
(“better lives”) and ageing.
 Agreement to create a new Task Force on Financial
Consumer Protection; confirmation of the new PISA 2012
financial literacy option (fully integrated in main PISA project).
 Agreement on special events for 50th anniversary (high-level
Financial Roundtable, special n° 100 FMT issue in 2011).
 Invited candidates for Chairmanship (proposal to be agreed
upon by 10 December)
 How to follow up with WPFS? Enhance communication & cooperation…
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Thank you!
Any questions?
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