1. Bank Supervision and Accounting
An overview of Project results and possible recommendations
XVth International June Richard Gregson
Banking Congress
This project was funded by the European Union

2. Country – beneficiary: Russian Federation;
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
MAIN CHARACTERISTICS OF THE PROJECT
Country – beneficiary: Russian Federation;
Partner of the Project – Central Bank of the Russian Federation;
Funded by: European Union;
Project Duration – 2 years to September 2005 (extended until 31 December 2005).

3. BANK SUPERVISION AND ACCOUNTING. XVth International. 9 June 2006
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
THE PROJECT CONSORTIUM
PricewaterhouseCoopers
The Institute of Chartered Accountants in Ireland
Credit Agricole Consultants
THE PROJECT BENEFICIARY
The Central Bank of the Russian Federation, specifically, the Banking Regulation and Supervision Department

4. BANK SUPERVISION AND ACCOUNTING. XVth International. 9 June 2006
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
PROJECT OBJECTIVES
To facilitate further improvement of efficiency and effectiveness of supervision over the activities of financial institutions and creation of a better basis for the development of the banking sector in Russia.

5. Application of IFRS Approaches in Prudential Reporting
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
PROJECT COMPONENTS
Application of IFRS Approaches in Prudential Reporting
Supervision and prudential reporting
Pilot banks
Awareness and Training

6. BANK SUPERVISION AND ACCOUNTING. XVth International. 9 June 2006
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
KEY RESULTS
Development of an new architecture for prudential reporting and supervision methodology
Development of new and revised reporting forms and subsequent testing in pilot banks
Provision of recommendations for key legislative changes required to bring the legislative base of banking supervision in Russia into conformity with international practice
Provision of workshops, study tours and consultations to Central Bank supervision employees

7. BANK SUPERVISION AND ACCOUNTING. XVth International. 9 June 2006
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
SOME KEY RECOMMENDATIONS
Restructure the architecture of the reports submitted by banks
Move to risk-focused supervision
Improve infrastructure within the function of supervision
Enhance the approach to analyzing the reports submitted to the CBRF
Improve the level of coordination between on and off-site supervision

8. BANK SUPERVISION AND ACCOUNTING. XVth International. 9 June 2006
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
SOME KEY RECOMMENDATIONS
Restructure the architecture of the reports submitted by banks
Move to risk-focused supervision
Improve infrastructure within the function of supervision
Enhance the approach to analyzing the reports submitted to the CBRF
Improve the level of coordination between on and off-site supervision

9. BANK SUPERVISION AND ACCOUNTING. XVth International. 9 June 2006
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
PRINCIPLES OF PROPOSED NEW ARCHITECTURE
IFRS basis
Prudential specificities
International practice
Russian environment
Differentiated reporting
Dynamic information
Periodicity of reports

10. BANK SUPERVISION AND ACCOUNTING. XVth International. 9 June 2006
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
THE BASIS OF THE PROPOSED ARCHITECTURE
Activity
Risks
Financial Structure
Profitability

11. BANK SUPERVISION AND ACCOUNTING. XVth International. 9 June 2006
BANK SUPERVISION AND ACCOUNTING XVth International 9 June Richard Gregson Banking Congress
WHERE TO NEXT?
Analysis and implementation
Phased convergence with the principles of Basle II by 2009/ 2010