Toronto Centre Podcasts Toronto Centre

Financial crime is a significant threat to the safety and security of citizens and to the integrity of individual countries and the global financial system. While the proliferation of digital technologies presents many opportunities for financial systems, it also has introduced a new age of financial crime. For instance, crypto assets are a currency of choice among criminals.The panel discussed:* The importance of global implementation of FATF’s standards to ensure responsible financial sector growth* Using the latest data technologies to combat financial crime* How financial supervisors can better detect criminal activity and enhance know-your-customer protocols* How policymakers and supervisors can advance global coordination to combat financial crimeOpening Remarks:Ian Gorst, Minister of External Affairs, Government of JerseyPanelists:Abdul Rasheed Ghaffour, Governor, Bank Negara MalaysiaT. Raja Kumar, President, Financial Action Task Force (FATF)Cecilia Skingsley, Head, BIS Innovation Hub, Bank for International Settlements Moderator:Jennifer Elliott, Advisor, Monetary and Capital Markets Department, IMF; Board Member, Toronto CentreRead their biographies here (https://torcentre.sharepoint.com/:b:/s/Files/Eb1vnWGoURZPlXBSk05EU7oByzKqkyYFRK2S8c67JFQWKg?e=Ctgc3A). https://www.torontocentre.org/ (https://www.torontocentre.org/)

The nature of retail conduct supervision, which can often be more prescriptive and rules based, can result in different approaches to intervention.This TC Note and accompanying podcast discusses how supervisors should take a more proactive risk-based approach to dealing with potential areas of misconduct and apply the key principles of risk-based supervision to facilitate an earlier identification and remediation of issues.Speaker: Karen Badgerow, Program Leader, Toronto CentreHost: Chuin Hwei Ng, Senior Program Director, Toronto CentreRead the transcript here (https://torcentre.sharepoint.com/:b:/s/Files/EYQgubQNQJ5MoCPS4rFMRDQBh-b2-PW26BZTjlu5o1Bz7w?e=b6g7Og). Read their biographies here (https://torcentre.sharepoint.com/:b:/s/Files/ESDpZ3KIsRBPt-SuNU0M4_wBUcTDS4MUpm6BsrGfw8w0aQ?e=wCOShm).https://www.torontocentre.org/ (https://www.torontocentre.org/)

Stress testing should be a critical element of risk management for most financial institutions. It should alert boards and senior management to potential adverse outcomes related to a broad range of risks and vulnerabilities, identify potential losses, liquidity needs, and operational responses should adverse shocks occur. Supervisors should, in turn, have a strong interest in stress testing by financial institutions. This TC Note and accompanying podcast discusses the need for financial institutions to conduct stress testing, what types of stress tests and scenario analyses are used, possible adverse outcomes, key areas in stress testing supervision, and the possible usages of the results by financial institutions.Speaker: Clive Briault, Chair, Banking Advisory Board, Toronto CentreHost: Demet Çanakçı, Senior Program Director, Toronto CentreRead the transcript here (https://torcentre.sharepoint.com/:b:/s/Files/EVfrFLns1UZKnd4Ds13YbYUBsQBCIy5TCZaS2nCbpc910w?e=NMZYDB). Read their biographies here (https://torcentre.sharepoint.com/:b:/s/Files/EXYXp0lnheNPukeADOVvxKMB6nnY6i1HF_Xj1YJatJwMJw?e=8RySB7).https://www.torontocentre.org/ (https://www.torontocentre.org/)

Supervisory stress testing is a technique used to assess the robustness of financial institutions and the broader financial system to severe but plausible shocks. Since the Global Financial Crisis of 2008, it has emerged as an important tool for supervisors that complements other approaches and methods.Stress testing is one of the more complex tasks undertaken by supervisory authorities. Primarily used to inform solvency and liquidity adequacy assessments, it is also a critical method for exploring emerging risks and the threats they pose to financial institutions.This TC Note and accompanying podcast discusses the design, effective use, limitations, and interpretation of stress tests by financial supervisors. It explores a range of stress tests, from elementary, top-down applications to more sophisticated tests using scenarios applied bottom-up to multiple financial institutions. Speaker: R. Barry Johnston, Program Leader, Toronto CentreHost: Demet Çanakçı, Senior Program Director, Toronto CentreRead the transcript here (https://torcentre.sharepoint.com/:b:/s/Files/EWoeM-QRr4hItXKdywSn7cIBcUPwZGoZ5jUwAg2J8RupFA?e=fvxLds). Read their biographies here (https://torcentre.sharepoint.com/:b:/s/Files/EUlvwnq_mABJrNwN_X1UDcYB7grhF0Dkz1XXExRI8NHsBA?e=CoZZsA). https://www.torontocentre.org/ (https://www.torontocentre.org/)

Liquidity is fundamental to the operation of financial institutions. Problems can quickly arise and escalate, threatening the stability of the financial system.This TC Note and accompanying podcast focuses on good practices in liquidity management by financial institutions in the banking, insurance, pensions, and securities sectors. It provides guidance on how supervisors should assess liquidity management, including the use of scenario analysis and stress testing. Lessons learned from recent high-profile financial institution failures are explored.Speaker: Paul Wright, Program Leader, Toronto CentreHost: Chuin Hwei Ng, Senior Program Director, Toronto CentreRead the transcript here (https://torcentre.sharepoint.com/:b:/s/Files/EfxPUlK6gg5Ku6Yn7sejto0B3hrN7zYaHJNKD4sh_yPWCw?e=ZqTpjx). Read their biographies here (https://torcentre.sharepoint.com/:b:/s/Files/EYGDGyC_VipKo_eCYAOhmiEBQDVIN6jbdkei4Li72MFAXw?e=RgnLVT). https://www.torontocentre.org/ (https://www.torontocentre.org/)

The world's most economically vulnerable populations are frequently impacted by natural catastrophes (NatCats).The International Association of Insurance Supervisors' (IAIS) recent report, A call to action: the role of insurance supervisors in addressing natural catastrophe protection gaps (https://www.iaisweb.org/uploads/2023/11/IAIS-Report-A-call-to-action-the-role-of-insurance-supervisors-in-addressing-natural-catastrophe-protection-gaps.pdf), outlines actions insurance supervisors can take.The speakers discuss key takeaways from the report including:* How closing the protection against gap for natural catastrophes could improve financial stability, particularly for emerging markets and developing economies* The importance of improving consumer financial literacy* Creating an enabling regulatory and supervisory environment to expand access to affordable insurance productsRead our Climate and Biodiversity Loss Risks Toolkit (https://www.torontocentre.org/index.php?option=com_content&view=article&id=416&Itemid=99) to learn more.Speaker: Jacqueline Friedland, Executive Director, Risk Assessment and Intervention Hub, Supervision Sector, Office of the Superintendent of Financial Institutions (OSFI), Vice Chair, Protection Gap Task Force, International Association of Insurance Supervisors (IAIS)Host: Anatol Monid, Senior Director, Programs, Toronto CentreRead the transcript here (https://torcentre.sharepoint.com/:b:/s/Files/ERO6vrLVsXxOj8UTh3If3e8BmLxpqQCaZe_ioeKgL7Nnfw?e=JbkY8R). Read their biographies here (https://torcentre.sharepoint.com/:b:/s/Files/Ee5kiiNNkjtJj-A43Z-LFN8BzkMQgwWb0ECongtrKivWQQ?e=ztGmWm). https://www.torontocentre.org/ (https://www.torontocentre.org/)