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THE SOUTH EAST ASIAN CENTRAL BANKS (SEACEN)RESEARCH AND TRAINING CENTRE

The SEACEN Centre

Port Moresby, Papua New Guinea3rd October 2015

Hosted by

Bank of Papua New Guinea

FOURTEENTH SEACENEXECUTIVE COMMITTEE (EXCO) MEETING

The South East Asian Central Banks (SEACEN) Research and Training Centre

Port Moresby, Papua New Guinea 3rd October 2015

PROVISIONAL AGENDA

No Agenda Item 1.

Adoption of Provisional Agenda

2. Confirmation of 13th EXCO Meeting Minutes

3. Matters Arising

4. Progress of Initiatives and Budget Implementation for Financial Year (FY) 2015 (up to 31 Aug)

4.1 Progress of Initiatives

4.2 Budget Implementation (up to 31 August 2015)

5.

Matters for Consideration and Recommendation:

5.1 Proposed Priority Initiatives for 2016 and beyond

5.2 Proposed Appointment of External Auditors

5.3 Proposed Training, Research and Meeting/Seminar Programs for FY2016

5.4 SEACEN Expert Group on Capital Flows (SEG): Inducting all SEACEN Members to SEG Group

5.5 Revised roles for SEACEN Advisory Groups

5.6 Professional Credentialing of Central Bank Experts

5.7 Proposed Budget for FY2016

5.8 SEACEN Funding Model Presentation by Chair of EXCO Task Force, Bank of Papua New Guinea

6. Matters for Information:

6.1 SEACEN Internal Audit conducted in FY 2015 Presentation by Bank Negara Malaysia

6.2 New External Auditor for SEACEN Trust Fund effective FY 2016

6.3 SEACEN Additional Scholarships

6.4 Directors’ Report and Accounts for Financial Year 31 December 2014

7. Other Matters

Fourteenth SEACEN Executive Committee (EXCO) Meeting

14th SEACEN Executive Committee Meeting - Annotated Agenda Page 1

FOURTEENTH SEACEN EXECUTIVE COMMITTEE (EXCO) MEETING

3rd October 2015

Port Moresby, Papua New Guinea

ANNOTATED AGENDA

AGENDA ITEM 1

Adoption of Provisional Agenda

AGENDA ITEM 2

Confirmation of Minutes of the 13th EXCO Meeting

A copy of the Minutes has been circulated to the EXCO Members for the

confirmation by the EXCO (Appendix A).

AGENDA ITEM 3

Matters Arising

Matters arising will be taken up under subsequent items in the Agenda.


AGENDA ITEM 4

Progress on Initiatives and Budget Implementation for Financial Year (FY) 2015 (Up

to 31 August 2015)

The approved strategic initiatives and the program activities for FY2015 are being

implemented as planned. The progress on the key strategic initiatives is as follows:

4.1 Progress of Initiatives

4.1.1 2015 SEACEN Policy Summit

The 2015 SEACEN Policy Summit was held on 7-8 September in Sasana Kijang,

Kuala Lumpur with the theme ‘Macroprudential Policies: Practical Implementation’.

The Summit brought together over eighty delegates from central banks, financial

regulatory agencies, international institutions, academia, and private sector financial

institutions. The first day featured keynote addresses by former Governor of the

Central Bank of Chile, Dr. Jose de Gregorio; former Deputy Governor of Bank

Indonesia, Dr. Halim Alamsyah; and Former Deputy Governor of Bank of England,

Sir Paul Tucker. Other participants included SEACEN member Deputy Governors,

representatives from the IMF, as well as other regional Central Banks. The second

day of the Summit was divided into two concurrent meetings. One featured an all-

day closed-door meeting of SEACEN Assistant Governors and Directors moderated

by Hans Genberg and Michael Zamorski from SEACEN. This meeting offered

participants the opportunity to share experiences in an informal yet structured

setting, resulting in a lively and informative exchange of views. The other meeting

on day two, aimed at building a community of researchers, was devoted to the

presentation and discussion of ten research papers selected through a wide call for

papers. The forum gave researchers studying the effects of macroprudential policies

a platform to disseminate their findings and to receive feedback. Contributors were

from academia, ADBI, IMF, BIS and SEACEN Member banks. Vincent Lim of

SEACEN chaired the sessions.


4.1.2 Collaboration with Strategic Partners

Discussions were held with officials from Centro de Estudios Monetarios

Latinoamericanos (CEMLA) regarding the organization of a joint

meeting/seminar/research forum as a follow up on that held in Kuala Lumpur in

2013. One possibility would be to hold a seminar for SEACEN and CEMLA

Governors in conjunction with the Annual (or Spring) Meeting of the International

Monetary Fund or immediately after one of the bi-monthly governor’s meetings at

the Bank for International Settlements (BIS). Preliminary discussions were held with

a representative of the European Central Bank (ECB) as a possible host for such a

meeting if it were held in the neighborhood of Frankfurt.

Meetings were also held with officials from the Bank for International Settlements,

the Basel Committee on Banking Supervision, the Committee on Financial Market

Infrastructure, and the Financial Stability Institute to discuss potential collaborations

in order to rejuvenate and enhance these relationships. These prospects for

networking and collaboration will benefit SEACEN’s members through the ability to

draw on a wider array of SMEs and thus provide enhanced learning programs and

research opportunities.

4.1.3 Knowledge Management and SEACEN Portal

SEACEN has put in place a Document Management Policy which defines what

constitutes Strategic Knowledge Assets (SKAs) that will be stored in a secure site in

the Portal. These SKAs include the SEACEN Expert Group (SEG) Database on

Capital Flows (in secured site in the Portal); database of participants and speakers

in SEACEN training and research events; a database containing SEACEN case

studies; SEACEN historical, legal and financial documents; annotated agendas and

minutes of SEACEN policy meetings (BOG, EXCO, BOD, DORT); learning

materials for paperless events; and administrative documents of respective

SEACEN departments and units.

During FY 2015 (up to September 2015), the SEACEN Portal has been used to

support two paperless programs for training courses; two research workshops; four

SEACEN policy meetings back-to-back with high-level seminars; as well as

conferences. The event management module was piloted with one training course -

FS9 – SEACEN Signature Course on Systemic Risk and Macroprudential Policy

Implementation, 20-25 September 2015, Seoul, Korea. SEACEN plans for additional

http://www.cemla.org/

http://www.cemla.org/


events to be handled through the end-to-end event management module of the

Portal before end-December 2015.

Challenges and Feedback on Portal Usage by Member Central Banks/Monetary

Authorities include: Access to SEACEN Portal is highly dependent on stable

Internet connectivity. For the usage to be seamless, the host venue must be able to

provide the necessary bandwidth; and, any access restrictions by member banks

and monetary authorities to external sites may also impact the user experience.

Details are presented in Appendix B

4.1.4 SEACEN Financial Stability Journal (SFSJ)

SEACEN published the fourth edition of the SEACEN Financial Stability Journal

(SFSJ) in April 2015, which comprised of four articles, with the lead article authored

by Mr. Thomas Curry, the U.S. Comptroller of the Currency. The fifth edition of the

SFSJ will be published in November 2015, with the lead article authored by Yves

Mersch, a member of the Executive Board of the European Central Bank.

Efforts to build SFSJ readership will continue in 2016. We continue to inform our

SEACEN course alumni and other contacts about the availability on on-line

subscriptions at no cost. We request that our member central banks and monetary

authorities advise their staff about the availability of on-line subscriptions at no-cost;

we propose this be done by furnishing an email solicitation to our members with links

to the subscription sign-up page that can then be forwarded within the organization.

4.1.5 SEACEN Supervisory Discussion Room (SSDR)

SEACEN also conducts the SEACEN Supervisory Discussion Room (SSDR) which

serves as an excellent forum for bank supervisors of member central banks to

discuss emerging regional and topical supervisory issues and their policy

implications without disclosure on any institution-specific matters to ensure

confidentiality. The first 2015 SSDR session was conducted on 23 June with twelve

member central banks participating. The agenda of the session included interest rate

risk, financial reporting of non-performing loan and timely recognition of loan

impairments. The next two SSDRs will be conducted in October and November 2015

respectively. We intend to conduct four SSDR sessions during 2016, one per

calendar quarter.


4.1.6 Pilot Web-based Seminars (Webinars)

SEACEN implemented two pilot webinars (seminars conducted via the web) to

gauge members’ interest in participating in such learning solutions. The webinars

were found to be timely, covering topics of current interest which were delivered by

renowned experts. The webinars were very conveniently organized without any

travel arrangements required for the audience and resource speakers. SEACEN

plans to organize more webinars in the future.

Details 1st Webinar 2nd Webinar

Date 4 December 2014 19 June 2015

Resource Speaker

Dr. Tommaso Mancini-Griffoli, Financial Sector Expert, Monetary and Capital Markets Department, IMF

Mr David Marsh, Managing Director, OMFIF

Topic Emerging Market Volatility: Lessons from the Taper Tantrum

Demystifying the EURO Crisis

No. of Participants

61 42

4.1.7 Training

Thirteen out of 23 training programs, out of which six are signature programs, have

been implemented. The average Level-1 evaluation for the 13 training programs is

4.4/5. The course on Central Bank Governance which was postponed from FY2014

was completed in February 2015. Level-1 evaluation was at 4.3 out of 5.0. SEACEN

Internal faculty is substantially involved in the MMPM and FSS training courses and

high-level seminars.

4.1.8 Research

Three collaborative research projects and a high-level seminar are progressing as

planned. For the collaborative projects, three workshops have been implemented,

and the remaining research seminar (2 completed) will be implemented by October

2015. The research papers from these collaborative projects are expected to be

published by the first quarter of 2016. The topics are (1) Monetary Policy

Transmission in the SEACEN Economies; (2) Research Project for Capital Flows

Research Group under the SEACEN Expert Groups on Capital Flows (SEG); and,

(3) Customized Research Project on Fundamental Principles of Central Bank

Financial Reporting: A Preliminary Study in SEACEN Economies. Meanwhile, the

high-level seminar on Harmonizing Micro-prudential Policies with Macro-prudential

Supervision will be implemented in the 4th quarter of 2015.


4.1.9 ASEAN Financial Integration Framework

As co-chair, together with the Asian Development Bank, of the Steering Committee

for Capacity Building (SCCB) under the ASEAN Financial Integration Framework,

SEACEN has facilitated the work of a dedicated committee to develop a roadmap of

capacity building modules through the organization of web-conferences and a

workshop. The outcome was discussed by the SCCB at its 9th meeting in Manila on

September 14, and presented to the 10th meeting of the Senior Level Committee

(SLC) on the following day. The SLC congratulated SEACEN for its support of this

initiative and noted the implementation plan for 2016 which, among other features,

involves the delivery of five dedicated training courses in 2016 for BCLMV central

banks/monetary authorities. The courses will be organized at SEACEN by an

Instructional System Designer financed by the ADB while the courses are financed

by the ASEAN Australia Development Cooperation Programme (AADCP).

Progress of the strategic initiatives and learning, research and meeting programs and

scorecard of SEACEN are in Appendices C1 – C5.

4.2 Budget Implementation (Up to 31 August 2015)

The total estimated expenditure incurred for FY 2015 of RM10,574,141, which is based

on the actual expenditure for the first eight months which ended 31 August and estimated

expenditure for the four remaining months of the financial year, remains well within the

approved budget of RM13,079,300 at 80.9 per cent. Highlights of the budget are as

follows:

a. Learning: With an estimated utilization of 77.4 per cent of the training budget, the

unutilized amount of RM1,555,280 was mainly due to the merging of an MMPM

course with an FSS course on the same topic; higher than expected number of ex-

gratis speakers (mainly from strategic partners), increased involvement of SEACEN

internal faculty as resource speakers in learning programs; vacant Senior Manager

and Program Manager positions in Learning Design and Development (LDD) which

were not filled; and the vacancy gap resulting from the requested return by the

Director of LDD to Bank of Thailand before the end of his SEACEN contract.


b. Research: With an estimated utilization of 58.5 per cent of the research budget, the

unutilized amount of RM950,106 was mainly due the vacant position of Director

Research and Learning Content since May 2015; the inability to fill Visiting Scholar

Positions(VSP) due to the unfortunate unavailability of potential candidates that had

been contacted. In addition, the Just-in-time seminar which was back-to-back with

DORT meeting was conducted with speakers from SEACEN and member banks as

well as a subject matter expert from the World Bank all of whom were engaged on

an ex- gratis basis.

c. Institutional: With an estimated utilization of 100.29 per cent of the institutional

budget of RM3,922,627, there was an over-utilization in staff-related expenditure

with the transition of the Executive Director position in mid-2015.

The summary of budget and estimated expenditure for FY 2015 is as follows:

Summary of Budget and Estimated Expenditure for Financial Year 2015

Items Budget@

RM

Estimated Utilisation

RM %

Learning *

6,868,000 52.5%

5,312,720

77.5

Research

2,288,900 17.5%

1,338,794

58.5

Institutional

3,922,400 30.0%

3,922,627

100.0

Total 13,079,300 10,574,141 80.9

* Net of supplementary budget from Bank of Japan Grant of ¥10 million.

Details on the implementation of the budget for FY 2015 are presented in Appendix C6.

The progress on initiatives and budget implementation (up to 31 August 2015) are

submitted for EXCO’s consideration.


AGENDA ITEM 5

Matters for Consideration and Recommendation

5.1 Proposed priority initiatives for 2016 and beyond

Following the suggestions from the 13th EXCO and 34th BOG in 2015 for the new

management to provide inputs to the 2015 – 2017 strategic business plan, a number of

initiatives will be started in 2016 with the objective of enhancing the value of training

programs, increasing the quality of research output, augmenting the impact of high-level

seminars, and generally raising the visibility of SEACEN in the region as well as globally.

The medium-term goal is to position SEACEN as a ‘go-to’ institution for training for

members; as a principal regional center promoting collaboration and networking through

high-level seminars, conferences and meetings; and as an internationally respected

centre for research capable of attracting leading scholars and policy makers. Success will

be measured by the evaluations of training programs by participants and their seniors; by

the quality of research output as judged by publications, citations, invitations to scientific

conferences; by the relevance of high-level seminars as judged by the participants; and

by the reputation of scholars that are interested in working at or visiting SEACEN.

5.1.1 Implementing the restructuring plan as proposed by the Remuneration

Committee, endorsed by EXCO, and approved by the SEACEN Board of

Governors at its meeting in Port Moresby, Papua New Guinea on 21st November

2014, is the cornerstone of the initiatives. The objective is to increase the capacity

of the SEACEN faculty to participate in the delivery of training events, generate

high-quality research output, and design high-impact seminars, thereby raising the

visibility of SEACEN. A recruitment campaign has started for the Director and

three Senior Economists in the area of Monetary Policy and Macroeconomic

Management and three Senior Analysts in Financial Stability and Supervision &

Payments and Settlement Systems. The outcome of this campaign will have a

strong bearing on the success of other initiatives.

The restructuring plan also takes into consideration the career path and

development of existing staff.


5.1.2 Boost the quality and refine the uniqueness of SEACEN training programs

through the use of available on-line training modules as background material;

increased use of interactive hands-on sessions; and engaging renowned experts

for signature courses. To ascertain the training needs of members, SEACEN has

revamped its engagement with stakeholders during the annual meetings with

Directors of the respective training areas, and is proposing a more regular role of

SEAG in the design of training programs.

5.1.3 Produce higher-quality research output both internally and in collaboration with

members. One of the principal qualifications for the new hires (see above) is a

proven research record, and the job description includes research output as a

prominent part. With respect to collaborative research, two avenues will be

followed:-

(i) by continuing the current strategy in which a topic is identified, a project leader

is chosen, and team project papers are produced using a common

methodology, and,

(ii) by identifying research themes that are currently pursued by members, bringing

together researchers from different central banks who are working on similar

themes in research groups, and conducting on-line and face-to-face seminars

where the researchers can present their methodology and findings to fellow

group members and receive feedback. It is also envisaged that a mentor will be

invited for the face-to-face seminar in order to bring a perspective from a

recognized expert in the field. The broad outline of this proposal was endorsed

in the meeting of Directors of Research and Training held in Fiji on August 21,

2015.

SEAG members will be consulted in particular to identify appropriate topics for

approach (i). A survey has been carried out to identify themes under approach (ii).

5.1.4 Continue the SEACEN Policy Summit on an appropriate topic chosen with input

from members. The format of the 2016 Summit will be the same as that of the

2015 edition, namely two days with the first consisting of a high-level plenary

program, and the second divided into two parallel sessions, one closed-door for

AGs/Directors of SEACEN member banks, and the other for researchers.


5.1.5 Organize short high-level seminars on current and potential future topics of

importance for central banks. Possible to topics include: Anti Money Laundering;

the use of ‘big data’ by central banks and regulators; implications and use of

social media by central banks as a communication device.

5.1.6 Continue organizing “on-demand” webinars (web-based seminars) with

distinguished external experts as resource speakers on topics of current or

emerging interest to member central banks.

5.1.7 Advance the role of SEACEN as an information center for members as well as

for the policy/research community at large. Specifically, we will explore the

possibility of creating a dedicated page on the SEACEN website where

information about macroprudential policy initiatives and research will be gathered

and organized for easy reference. Depending on the resource intensity required to

manage a high-quality reference site, another possible area for information

aggregation could be on governance.

5.1.8 Establish a Risk Control Self-Assessment (RCSA) to proactively manage

potential material risks with the objective of identifying material risks and

assessing the adequacy of risk mitigation measures in key business areas. Risk

management is of strategic importance to support improved decision-making by

providing greater insight into the nature of risks that may impede SEACEN’s

overall strategies and objectives. Sound risk management leads to the

development of effective strategies to manage performance and results,

reinforces transparency and accountability and provides reasonable assurance to

Management on the achievement of SEACEN’s objectives.

The RCSA will be conducted annually by key departments. SEACEN may require

external assistance to develop the RCSA before the assessment can be

implemented.

The proposed objectives and initiatives are submitted for the EXCO’s

consideration and recommendation.


5.2 Proposed Appointment of External Auditors

Following the BOG’s approval at its 34th meeting in Papua New Guinea on 21 November

2014 for SEACEN to change its external auditors every three years aligned to the

principal of good governance, SEACEN has conducted an assessment on five audit firms,

as well as SEACEN’s current external audit firm, S.J. Grant Thornton. The Board of

Directors (BOD) decided, at its meeting held on 26 May 2015, that SEACEN should

submit its proposal of the nominated audit firm to the EXCO for consideration, following

which it would seek the approval by the BOG of the EXCO’s recommendation. Next, the

BOD will be required to convene an Extraordinary General Meeting before the end of

2015, to formalize the appointment of the audit firm to perform the annual audit of

SEACEN’s financial accounts for the financial year ending 31 December 2015 onwards.

From the assessment conducted, taking into account SEACEN being a non-profit

organization, SEACEN proposes to appoint Halim & Lee as the audit firm to perform the

annual audit of SEACEN’s financial accounts, commencing the financial year ending 31

December 2015 based on the following reasons:

a. It is internationally affiliated and ranked as one of the top 10 accounting firms in

Malaysia based on the Top 10 of Malaysia magazine.

b. It has 8 partners with a network 160 staff in several offices nationwide. The partners

are personally involved in the audits in one way or another.

c. The quoted audit fees of RM4,000 is the lowest among the list of audit firms

assessed.

Details of the assessment conducted by SEACEN are presented in Appendix D.

Proposed appointment of MS. Halim & Co as the audit firm to perform the

annual audit of SEACEN’s financial accounts with effect from Financial Year

ending 31 December 2015 is submitted for the EXCO’s consideration and

recommendation.


5.3 Proposed Training, Research and Meeting/Seminar Programs for FY 2016

5.3.1 Training Programs

Based on the existing capacity of SEACEN and the diverse learning needs of the member

banks, SEACEN proposes a total of 22 training programs for FY2016 comprising seven in

the MMPM knowledge block, nine in FSS, and three in both PSS and LDG. The programs

include four signature programs; one in each knowledge block. The resource persons for

the training courses will be recognized experts from SEACEN, member central banks,

international financial institutions and academia.

Details of the training programs for FY 2016 are presented in Appendix E1.

5.3.2 Research Programs

In 2016, six research programs are proposed. These consist of four collaborative projects

and two ‘Just-in-time’ high level seminars. The proposed research projects are as follows:

Research Projects

1. Managing and Supervising Systemically Important Financial Institutions (SIFIs) in

SEACEN Economies

2. Global Liquidity and the Impact of Capital Flows and Exchange Rate in SEACEN

Economies

3. To be determined based on a survey to determine current research priorities in

member central banks/monetary authorities.

4. To be determined based on a survey to determine current research priorities in

member central banks/monetary authorities.

All the research projects are carried out with the collaboration of researchers from

member banks. Research projects (1) and (2) are proposed based on information


gathered for the Meeting of Directors of Supervision and Payment Systems and the

Meeting of SEACEN Directors of Research and Training.

High-Level Research Seminars

5. Two “Just-in-time” seminars on topics which will be decided nearer to the date of

implementation to ensure timeliness of the seminar topics.

Details of the research programs for FY 2016 are presented in Appendix E2.

5.3.3 High-Level Seminars (back-to-back with Policy Meetings)

For FY2016, SEACEN proposes to implement six high-level meetings, which will be held

back-to-back with high-level seminars/conference/learning/research programs. The

theme of the seminars will be topical and policy oriented in nature, aiming to derive

potential regional views.

Details of the high-level seminars (back-to-back with Policy Meetings) for FY2016 are

presented in Appendix E3.

5.3.4 Conference in honour of Dr. Puey Ungkaphorn

A SEACEN Conference in memory of Dr Puey Ungpakorn, Former Governor Bank of

Thailand, on the occasion of the centenary of his birth will take place at Sasana Kijang on

March 14, 2016. In view of SEACEN’s mission, the conference will focus on central bank

cooperation on the one hand and on training on the other. Governor Puey Ungpakorn

was active in the process of central bank cooperation in Asia during his tenure as

Governor of the Bank of Thailand. He also emphasized the importance of education and

was Rector of Thammasat University.

The intended audience would be (i) Current and former SEACEN Governors; (ii)

Governors from other Central Banks (CEMLA, Europe); (iii) Senior officials from

International Organizations (IMF, BIS); (iv) Other representatives of our membership; (v)

Some of the attendees of the Wharton Global Forum which takes place on March 10 and

11; (vi) Members from Academia and Think Tanks; (vii) and Representatives from the


financial community. The Conference could be an occasion to revive the

SEACEN/CEMLA connection.

Proposed training, research, high-level seminars (back-to-back with policy

meetings) and conference for FY2016 are submitted for the EXCO’s

consideration and recommendation.


5.4 SEACEN Expert Group on Capital Flows (SEG): Inducting all SEACEN

Members to SEG Group

At the 11th Meeting of the SEG Meeting in 8 September 2015, the SEG secretariat

proposed several broad initiatives:

Implementing strategies to continue to enrich information sharing, particularly

through IT platform;

Setting up Research working groups when deemed necessary;

Fostering closer collaboration by expanding membership by inducting all SEACEN

members to the SEG group.

In the past SEACEN members were inducted to the SEG group, based on the criteria that

they can also contribute to the database. To date, there are five non-SEG SEACEN

members, namely Authoriti Monetari Brunei Darussalam, Reserve Bank of Fiji, Bank of

the Lao, PDR, Reserve Bank of India and Bank of Papua New Guinea. To foster closer

collaboration and information sharing, it is proposed that all SEACEN members are

automatically inducted into the SEG group. As the future direction of the SEG is more

forward looking, it is suggested that the data requirement criteria as mentioned above be

no longer applicable.

The SEG Meeting requested that the SEG Secretariat seek EXCO’s recommendation for

this matter.

The proposal for all SEACEN members to be automatically inducted into the

SEG Group is submitted for EXCO recommendation and consideration


5.5 Revised roles for SEACEN Advisory Groups (SEAG)

In 2011, the BOG approved the creation of SEAGs for each of the key knowledge blocks

to capitalize on the expertise in selected member banks to better align SEACEN learning

and research solutions to member banks’ needs. Face-to-face meetings with the SEAGs

of MMPM and HR have been conducted back-to-back with the DORT Meeting since

October 2010.

Following the inputs received from the SEAG members, SEACEN proposes to simplify

the terms of reference without diminishing the roles of the SEAG. One of the proposed

adjustments seek SEAG members to interact with SEACEN via electronic means on a

more regular basis instead of just the face-to-face meeting. As such, the formal face-to-

face meetings is proposed to be dropped.

Details of the revised terms of reference for the SEAG is presented in Appendix F.

Proposed Revision on Terms of Reference for SEACEN Advisory Groups is

submitted for the EXCO’s consideration and recommendation.


5.6 Professional Credentialing of Central Bank Experts

Various providers of professional services to the financial services industry are required

to obtain and maintain formal credentials or certifications evidencing their professional

competency. Examples include Certified Public Accountants, Chartered Accountants,

Chartered Financial Analysts, and Certified Real Estate Appraisers, who are generally

required to demonstrate professional proficiency through successful completion of various

courses of study or other accreditation protocols.

Various central bank experts, such as bank supervisors, those involved in monetary

policy analysis, and those responsible for payment system oversight need to possess a

wide-range of professional competencies and skills to effectively perform those functions

that meet or exceed those required for the aforementioned professional credentials. In

recent years, our members have inquired about SEACEN exploring the possibility of a

developing a professional credentialing program for central bank experts. Some central

banks already have a credentialing process for bank examiners. We are providing a

discussion note on this issue under separate cover on a possible SEACEN-lead initiative

to further explore this issue in collaboration with our members.

Details are presented in Appendix F1.

Proposed Professional Credentialing of Central Bank Experts is submitted

for the EXCO’s consideration and recommendation.


5.7 Proposed Budget for FY 2016

The proposed financial budget for FY2016 has been prepared to ensure adequate

financial resources to undertake SEACEN’s training and research programs, high-level

meetings and seminars, as well as initiatives identified to achieve the desired outcomes;

and the operations for the financial year. As the expected implementation of the new

organization structure and remuneration scheme in 2016 will be specifically addressed

separately, the staff salary-related expenditure has been excluded from the proposed

budget for FY2016. In the same way, the approved staff salary-related expenditure

budget for FY2015 of RM4,828,900 has been omitted from the total of RM13,079,300 for

comparison purposes.

The proposed budget for FY2016 amounts to RM7,678,750, which represents an

decrease of 6.9 per cent of the approved budget of FY 2015 of RM8,250,400. Several

factors have been taken into consideration with respect to SEACEN programs (training,

research, high-level meetings and seminars) in preparing the proposed budget for

FY2016, which include:

a. Besides honorarium, no gifts will be presented as tokens of appreciation to resource

speakers;

b. Reduced the travel-related expenditure of SEACEN officials (air travel,

accommodation and subsistence allowance) for SEACEN programs held overseas,

which will be based on a need to basis, eg. assigned designated roles during the

programs;

c. Less emphasis on formal ceremonial functions including opening and closing

ceremonies during SEACEN programs, as well as SEACEN–hosted welcome

dinners and informal dinners;

d. The practice of presenting gifts to member central banks and their secretariats for

hosting SEACEN programs will cease with effect from 2016 onwards;

e. Airport transfers will only be provided for resource speakers and delegates at the

Deputy Governor level and above, for SEACEN-hosted programs;


f. Other reduced administrative expenditure including program material reproduction

in hardcopy and seminar bags, as SEACEN-hosted programs will generally be

conducted in a paperless environment;

g. The proposed budget for high-level meetings (back-to-back with seminars) will

standalone as a key business activity; and,

h. The staff salary-related expenditure will be booked under the Institutional section of

the proposed budget, based on the outcome of the presentation of the proposed

implementation of the new organization structure and remuneration scheme at the

EXCO meeting.

The following table highlights the budget allocation for FY2016 to the four key business

areas of training, research, meetings and institutional, which comprised 52.9 per cent,

17.7 per cent, 9.6 per cent and 19.8 per cent of the total proposed budget respectively:

Budget Allocation among Key Business Areas

Business Area

FY2015 Approved Budget

RM (% of total)

FY2016 Proposed Budget

RM (% of total)

Change (%)

Training*

4,452,900*

(54.0%)

4,062,500*

(52.9%)

(8.8%)

Research

1,375,600 (16.7%)

1,355,500 (17.7%)

(1.5%)

Meetings

986,000 (12.0%)

738,400 (9.6%)

(25.1%)

Institutional

1,435,900 (17.4%)

1,522,300 (19.8%)

6.0%

Total 8,250,400 7,678,750 (6.9%)

* Net of supplementary budget from Bank of Japan Grant of ¥10 million.


Allocation of the proposed budget for FY 2016 to the key business activities comprises:

a. Training Budget: The proposed Training budget for FY2016 comprises

RM4,062,5001 to finance 22 training programs (with a Signature Program in each of

the knowledge areas of MMPM, FSS, PSS and LDG) as well as the 2016 SEACEN

Policy Summit and SEACEN Conference in honour of Dr. Puey Ungphakorn, while

the remainder of the Training budget is proposed for four case studies.

Based on the analysis of the proposed budget for Training Courses for FY2016,

more emphasis has been placed on the engagement of resource speakers which

constituted 71.6 per cent of the budget which SEACEN official travel-related

expenditure makes up 12.5 per cent, as compared to 64.3 per cent and 15.4 per

cent respectively for FY2015.

b. Research Budget: The proposed Research budget of RM1,355,550

comprises main four research projects and two high-level “Just-in-Time” seminars.

In addition, SEACEN proposes to engage up to two Subject Matter Experts (SMEs)

under the Visiting Scholar Program (VSP) during the year as well as conduct four

webinars, engaging renowned subject matter experts on topics of interest.

c. Meeting Budget: The proposed Meeting budget of RM738,400 is to finance

the six high-level meetings which will be conducted back-to-back with high-level

seminars.

d. Institutional Budget: With the exception of staff salary-related expenditure,

the proposed Institutional budget of RM1,522,300 constitutes an increase of 6.0 per

cent of the Institution budget of FY2015, which is mainly due to the purchase of a

replace photocopier; the purchase of two IT servers: one as a replacement and the

other as a back-up for SEACEN data; and, the renewal of the SEACEN Portal

licences and maintenance.

1 Net of supplementary budget from Bank of Japan Grant of ¥10 million.


Details of the proposed budget for FY2016 are presented in Appendix G.

The proposed financial budget of RM7,678,7502 for FY2016 is submitted for the

EXCO’s consideration and recommendation.

2 Excluding staff salary-related expenditure which will be specifically addressed separately together with the

proposed implementation plan of the new organization structure and remuneration scheme with effect from 2016.


5.8 SEACEN Funding Model

(Presentation by Chair of EXCO Task Force, Bank of Papua New Guinea)

A separate cover will be circulated by Bank of Papua New Guinea.

Options of SEACEN Funding Model are submitted for EXCO’s consideration and

recommendation.


AGENDA ITEM 6

Matters for Information

6.1 SEACEN Internal Audit conducted in FY2015

(Presentation by Bank Negara Malaysia)

A separate cover will be circulated by Bank Negara Malaysia.

6.2 New External Auditor for SEACEN Trust Fund effective FY2016

The SEACEN Trust Fund Board of Trustees in May 2015 agreed for

PricewaterhouseCoopers (PwC) to be appointed as the new external auditors of the

SEACEN Trust Fund for the accounts for financial year ending 31 December 2015. Based

on the principle of good governance, a review for the change in external auditors was

undertaken given that Messrs. SJ Grant Thornton has been the external auditor of the

STF since 1988.

The decision to engage PwC was based on the level of professionalism demonstrated in

terms of timely responses to queries; consistency and efficiency given that PwC also

audits other Bank Negara Malaysia entities; and PwC's competitive quote compared to

other external auditors

6.3 SEACEN Additional Scholarships (SAS)

Besides the 32 scholarships which have been allocated to the four eligible member banks

under the SEACEN Trust Fund, the BOG had approved a total of 20 scholarships under

the SEACEN Additional Scholarships (SAS) for FY 2015, bringing the total to 52

scholarships. As at the end of August 2015, a total of 15 SAS have been utilized and the

remaining 5 scholarships are expected to be utilised by end of the year. A summary of the

utilization of the SAS is as follows:


Eligible Member Bank

SEACEN Additional Scholarships in FY2015

No. Allocated No. Utilized Balance

National Bank of Cambodia 5 5 -

Bank of the Lao PDR 5 4 1

Central Bank of Myanmar 5 2 3

Nepal Rastra Bank 5 4 1

Total 20 15 5

6.4 Directors’ Report and Accounts for Financial Year 31 December 2014

SEACEN Board of Directors had approved the audited accounts for the Financial Year

ended 31 December 2014 at the 33rd Annual General Meeting (AGM) which was held on

26th May 2015. SEACEN’s total expenditure for FY2014 amounted to RM9.0 million,

which was 77.4 per cent of the approved budget of RM11.7 million. After adjusting for

interest earned and other income, the audited net expenditure amounted to RM8.8

million. Based on the agreed equal cost sharing formula of net expenditure, each of the

19 member bank’s contribution was RM459,347 while HKMA’s contribution was

RM73,544 since it was admitted as a Regular member of SEACEN on 1 November 2014.

The Annual Report of SEACEN has already been circulated to all members of the Board

of Governors and all member central banks’ contributions is expected to be received

before the end of September 2015. The Annual Report also included a financial analysis

of the 22 learning programs implemented in 2014:

a. Actual expenditure for the engagement of resource speakers comprised 57.7 per

cent of the total actual learning programs expenditure.

b. Since SEACEN had leveraged on its internal faculty in several of the MMPM and

FSS learning programs, the resource speaker-related expenditure for both

knowledge areas were lower, compared with those of PSS and LDG. Resource

speaker-related expenditure for LDG programs represented 81.0 per cent of total

actual learning programs expenditure as a result of the significant professional fees

incurred to engage resource speakers, including academia from Harvard Business

School.


c. Actual expenditure for SEACEN official travel was higher by 12.3 per cent

compared to the approved budget mainly due to two officials were involved in

managing some of the learning programs, as a result of on-site on-the job training

for new staff.

d. There was an over-utilization of meeting package expenditure by 14.8 per cent

mainly due to the change of host banks to SEACEN for certain programs.

SEACEN Board of Directors had approved the audited accounts for the Financial Year

ended 31 December 2014 at the 33rd Annual General Meeting (AGM) which was held on

26th May 2015. SEACEN’s total expenditure for FY2014 amounted to RM9,024,625.97,

which was 77.4 per cent of the approved budget of RM11,665,300. After adjusting for

interest earned and other income totalling RM223,504, the net expenditure amounted to

RM8,801,122. Based on the agreed equal cost sharing formula of net expenditure, each

member bank’s was RM459,347 whilst HKMA’s contribution was RM73,544 as HKMA

was admitted as a Regular member on 1st November 2014.

The Annual Report of SEACEN has already been circulated to the Board of Governors

and all member central banks’ contributions are expected to be received by end of

September 2015.

AGENDA ITEM 7

Other Matters

The SEACEN Centre 21 September 2015

APPENDICES

Appendix

A Minutes of the 13rd SEACEN Executive Committee (EXCO) Meeting

B Knowledge Management and SEACEN Portal C1 Progress of Strategic Initiatives for FY2015 C2 Progress of Learning Programs for FY2015 C3 Progress of Research Programs for FY2015 C4 Progress of Meeting/ High-Level Seminars for FY2015 C5 SEACEN Learning and Research Scorecard C6 Budget Implementation FY2015 (up to 31 August 2015) D Proposed Appointment of External Auditors E1 Proposed Training Programs for FY2016 E2 Proposed Research Programs for FY2016 E3 Proposed High Level Seminar (Back-to-Back with Policy

Meetings) for FY 2016 F Revised roles for SEACEN Advisory Groups (SEAG) F1 Professional Credentialing of Central Bank Experts G Proposed financial budget for 2016

Appendix A – Draft Minutes of the 13th SEACEN EXCO Page 1 of 18

Appendix A

DRAFT MINUTES OF THE 13TH SEACEN EXECUTIVE COMMITTEE (EXCO) MEETING

Kathmandu, Nepal

19th September 2014

The 13th SEACEN EXCO Meeting hosted by Nepal Rastra Bank was held in Kathmandu, Nepal

on 19th September 2014. Dr. Yuba Raj Khatiwada, Governor of Nepal Rastra Bank and Chairman

of the SEACEN EXCO presided over the Meeting. The Senior Deputy Governor/Deputy

Governors or representatives of 17 of the 19 member central banks and monetary authorities, as

well as the Executive Director of The SEACEN Centre (SEACEN) attended the Meeting. The

SEACEN-BIS Executive Seminar on “Enhancing the Effectiveness of Central Banks” preceded

the Meeting.

The list of delegates of the Meeting is attached in Attachment 1.

Agenda Item I: Adoption of the Provisional Agenda

2. The Chairman proposed and the EXCO adopted the Provisional Agenda.

Agenda Item II: Approval of Minutes of the 12th Meeting

3. The Minutes of the 12th Meeting of the SEACEN EXCO held in Ulaanbaatar, Mongolia,

on 30 September 2013, was confirmed by the EXCO without amendment.

Agenda Item III: Matters Arising

4. The EXCO noted that matters arising from the 12th EXCO Meeting will be taken up in

subsequent agenda items.

Agenda IV: Progress of Strategic Initiatives, Program of Activities and Budget

Implementation for Financial Year (FY) 2014 (Up to 31 July 2014)

5. The EXCO was briefed on the progress of the strategic initiatives undertaken by

SEACEN, namely the formulation of Strategic Business Plan 2015 – 2017; publication of the 2nd

volume of SEACEN Financial Stability Journal; implementation of the SEACEN Cyber Security

Summit 2014; SEACEN Supervisory Discussion Room; preparation for the ‘Just-In-Time’

SEACEN Financial Accounting Symposium 2014; and, the completed implementation of the six

customized learning programs under the ASEAN Financial Integration Framework. The EXCO


encouraged SEACEN to continue seeking potential topics that can heighten awareness and

infusing best practices in central banks in the likes of the SEACEN Cyber Security Summit 2014.

6. The EXCO also noted the completion of ten learning programs; two research projects,

where two out of four workshops have been implemented; High-Level Seminar on “Global

Liquidity and Impact of Capital Flows on Exchange Rates in Emerging Asia”; publication of six

working papers; and, two high-level meetings (held back-to-back with High-Level Seminars). Two

learning programs, namely the IV CEMLA-SEACEN Conference and the Seminar on Central

Bank Governance have been rescheduled tentatively to 5 - 6 February and 11 – 13 February

2015 respectively due to the availability of key resource speakers. For a more effective planning,

EXCO suggested that SEACEN should allow for sufficient time in the preparation of programs,

especially to secure resource speakers. The EXCO also noted that the remaining approved

programs for FY 2014 will be implemented as scheduled.

7. For further improvement in the content of the learning programs, the EXCO suggested

that the coverage should also be topical and comprehensive. As an example, the SEACEN

learning program on External Sector needs to thoroughly cover the sixth edition of the Balance of

Payments and International Investment Position Manual (BPM6).

8. The EXCO urged SEACEN to enhance the research evaluation with respect to timeliness

and usefulness of research projects. The EXCO also stressed the importance of reporting the

outcome of SEACEN programs in terms of quality, feedback, coverage and the ratings of

SEACEN Senior Management’s teaching roles in SEACEN programs instead of just recording

quantitative achievements.

9. The EXCO reviewed and considered the progress of strategic initiatives, learning,

research, meeting programs, learning and research scorecard and budget utilization for Financial

Year 2014 (up to 31st July 2014). The EXCO noted that the total estimated expenditure incurred

for FY 2014 of RM10,257,400, which was based on the actual expenditure for the first seven

months ended 31 July and estimated expenditure for the five remaining months of the financial

year, remained well within the approved budget of RM11,665,300 at 87.9 per cent. Highlights of

the budget were as follows:

a. Learning: With an estimated utilisation of 87.2 per cent of the learning budget, the

unutilized amount of RM835,588 was mainly due to the rescheduling of the IV

CEMLA-SEACEN Conference and Seminar on Central Bank Governance to FY

2015, and that a vacant Senior Manager position in the Learning Design and

Development Department was only filled in July 2014.

b. Research: With an estimated utilisation of 83.5 per cent of the research budget,

the unutilized amount of RM536,307 was mainly due to the vacant Senior

Economist position which has not been filled.


c. Institutional: The estimated utilisation is expected to be 98.1 per cent of the

institutional budget, with a total unutilized amount of RM36,005.

10. The EXCO commented that the overseas traveling expenditure had exceeded the budget

and emphasized that SEACEN should be vigilant in managing the travel of Senior Management

so as to ensure travel expenditure is contained in the last 5 months of the financial year. SEACEN

had explained that the overseas travel expenditure was mainly due to the difference in SEACEN

senior officials’ travel when they were involved in the meetings and learning programs under the

ASEAN Financial Integration Framework initiatives. The EXCO also emphasized that SEACEN

should review the need for ceremonial events, e.g. opening and closing ceremonies during

SEACEN learning programs. These should be maintained only if they truly added value to the

programs. If not, the funds economized can be redirected to engaging high quality resource

speakers.

Agenda Item V: Matters for Consideration and Recommendation

i) Proposed Remuneration Scheme and Three-Year Strategic Business Plan 2015 –

2017

Proposed Remuneration Scheme

(The discussion was held among EXCO members and member bank officials without the

presence of any SEACEN officials.)

Strategic Business Plan 2015 – 2017

11. The EXCO commended SEACEN on the efforts put into formulating the Strategic

Business Plan (2015 – 2017) (the Plan) as the Plan has reflected the comments provided by the

EXCO. The EXCO also suggested that the SEACEN brand should be defined in the Plan. The

EXCO commented that there should be alignment between the Plan and the proposals of the

Remuneration Committee (RC) regarding the organization structure and remuneration scheme.

The Plan, being a dynamic document, should be reviewed annually. An Advisory Committee,

comprising EXCO members, will provide guidance to the Executive Director on the review of the

Plan, moving forward.

12. To avoid any further delay, the Plan can be adopted, without implementing any newly

proposed strategic initiatives which will have long-term implications beyond 2016. The new

strategic initiatives for 2016 can be further reviewed by the new Management of SEACEN and to


be submitted to the EXCO for consideration and recommendation to the Board of Governors for

approval in 2015.

ii) Review of SEACEN Funding Model

13. The EXCO noted that at the 56th SEACEN Board of Directors (BOD) meeting which was

held on 17 June 2014, it was proposed that SEACEN should seek the EXCO’s consideration and

recommendation for a review of the SEACEN funding model in 2015 by an EXCO Task Force.

The EXCO appreciated the preliminary study conducted by SEACEN in identifying five possible

funding models, as the study will form a good starting point for the Task Force’s review. Eight

EXCO members had volunteered to form the Task Force, namely Autoriti Monetari Brunei

Darussalam; People’s Bank of China; Bank Indonesia; Bank of Korea; Bank Negara Malaysia;

Nepal Rastra Bank; Bangko Sentral ng PIlipinas; and, Monetary Authority of Singapore. The Task

Force will conduct a review on SEACEN’s Funding model and identify a preferred model by March

2015. This model will be submitted to the full EXCO for consideration and recommendation at the

EXCO meeting in 2015, and to the BOG for a final decision. While the initial meetings of the Task

Force can be conducted electronically, Bangko Sentral ng Pilipinas has offered to host the final

Task Force meeting prior to submission to the EXCO and BOG.

iii) Proposed Recruitment Process for Executive Director Position

14. The EXCO noted that the three-year term of the Executive Director (ED) of SEACEN will

expire on 30 June 2015 and the recruitment process is yet to commence. As the recruitment for

the ED position was closely linked to the proposed organization structure and remuneration

scheme which were presented by the RC, the EXCO emphasized that the recruitment process

should commence in October 2014, immediately after the EXCO Meeting. The EXCO deliberated

on three options for the set-up of an EXCO Interview Committee (EIC), headed by the EXCO

Chair:

Option 1: Originally proposed by SEACEN for the EIC to comprise twelve EXCO members.

The twelve members comprise the Troika (Nepal Rastra Bank, Bank of Papua New

Guinea and the next chairing member central bank for 2015/16), four founding member

banks and five non-founding member banks;

Option 2: The EIC to comprise seven EXCO members, namely the Troika and four

founding members; and,

Option 3: The EIC to comprise all EXCO members on a voluntary basis.

Based on the discussion of the three options, most EXCO members were of the view that Option

2 will be adopted, and SEACEN will assist the EXCO Chair to identify the members of the EIC.


15. The EXCO will be expected to vet all applications received and submit their respective

responses on the candidates to the EXCO Chair, and the three-highest ranked candidates will be

identified based on the compiled response. The results will be submitted to the EXCO for

consideration and endorsement. After the BOG’s approval is obtained on the proposed

organization structure and remuneration scheme, the interviews of the candidates will be

conducted by the EIC in Kuala Lumpur and SEACEN will play the secretariat role for the

interviews.

iv) Proposed Learning, Research and Meeting/Seminar programs for FY 2015

16. The EXCO noted that SEACEN’s proposal of a total of 22 learning programs for FY2015

comprising seven in the Macroeconomic and Monetary Policy Management (MMPM) knowledge

block, nine in Financial Stability and Supervision (FSS), and three each in Payment and

Settlement Systems (PSS) and Leadership and Central Bank Governance (LDG). In addition

three collaborative research projects together with associated research workshops; one in-house

research project; six high-level seminars/conferences, of which two are high-level seminars based

on topical themes; two case studies; and seven high-level seminars held back-to-back with high-

level meetings would be organized. High quality output from these activities would be published

principally by posting them on the SEACEN website.

v) Proposed Budget for FY 2015

17. The EXCO considered and recommended the proposed budget subject to the

adjustments consistent with the proposals of the RC recommendations.

vi) Hong Kong Monetary Authority’s (HKMA) SEACEN Regular Membership

Application

18. The EXCO noted that further to the decision made in SEACEN Board of Governors

(BOG), at the 33rd SEACEN Board of Governors Meeting held in Kathmandu on 22 November

2013, an EXCO Task Force (Task Force) comprising Nepal Rastra Bank (Chair), Bank of

Mongolia, Central Bank of Myanmar, Bank of Papua New Guinea and Bangko Sentral ng Pilipinas

as members, and the Executive Director of SEACEN in attendance, was set up to review the

Hong Kong Monetary Authority (HKMA)’s SEACEN Regular Membership (Membership)

application.

19. The EXCO was informed that since HKMA had fulfilled all the four membership criteria,

its membership application should be considered as favorable. The Task Force had circulated a


Comprehensive Assessment Report to all EXCO members in February 2014. The EXCO

concurred to recommend to the BOG, the admission of HKMA as the 20th SEACEN member.

Based on the proposal of the Task Force, the EXCO recommended that HKMA’s membership

admission be submitted to the BOG for approval via circular resolution after the EXCO meeting.

This is to allow for the possibility of inviting HKMA to the forthcoming BOG meeting in November

2014, subject to the approval of the BOG before the meeting.

vii) Applications for SEACEN Associate Membership

20. The EXCO noted that based on 33rd SEACEN BOG’s unanimous approval of the

assessment process of SEACEN Associate Membership applications, six central banks/monetary

authorities have responded positively by submitting SEACEN Associate Membership

applications. Applications were received from five invitee central banks/monetary authorities,

namely the Reserve Bank of Australia; Bangladesh Bank; Royal Monetary Authority of Bhutan;

Monetary Authority of Macao; and, State Bank of Pakistan, and the sole observer central bank,

National Reserve Bank of Tonga. The Maldives Monetary Authority and Reserve Bank of New

Zealand had declined SEACEN’s offer for Associate Membership.

21. Based on the assessment in the past and potential involvement of the six applicant

central banks/monetary authorities in SEACEN programs, the EXCO recommended for the BOG’s

approval, the admission of these six central banks/monetary authorities as SEACEN Associate

Members with effect from 1 January 2015. In addition, the EXCO recommended for the transfer

of the USD5,000 annual membership dues to be received from Associate Members, to the

SEACEN Trust Fund, which will then be utilized for scholarships to eligible regular member banks.

viii) Proposed Annual Internal Audit of SEACEN

22. The EXCO recommended for the BOG’s approval, the conduct of annual internal audit

of SEACEN by the internal auditors of Bank Negara Malaysia, based on the Board of Directors’

proposal.The objective was to provide assistance to SEACEN to further improve its internal

processes and good governance. The former practice of an internal audit every two years can be

reverted once the processes are in place. Based on the same principle of good governance, the

EXCO also suggested that SEACEN should consider changing its external auditors.


Agenda Item VI: Matters for EXCO’s Approval

i) Business Class Travel for Resource Speakers

23. The EXCO noted that SEACEN has been leveraging on external resource speakers and

subject matter experts (SMEs) from SEACEN member banks, strategic partners, academia,

private sector and other institutions besides its internal faculty. Some of these speakers are

involved in SEACEN programs on an ex-gratis basis. From April 2010 onwards, with the exception

of resource speakers at the levels of Assistant Governor and above (or equivalent) where

SEACEN provides business class air travel, speakers below that level have been provided with

economy class travel. Typically, in the case of resource speakers of member central banks below

the Assistant Governor level where SEACEN provided economy class travel, the central bank

would cover the difference in air fare between business class and economy class, if the resource

speaker’s eligibility in the bank was business class travel.

24. The EXCO also noted that in order to attract and source for the best resource speakers

to deliver in SEACEN programs, SEACEN should provide business class travel for all resource

speakers. In a comparative summary done in 2010 with two other similar learning institutions,

namely the Asian Development Bank and International Monetary Fund, it was noted that these

institutions provided resource speakers with business class travel. As such, the EXCO approved

that all resource speakers invited to deliver in SEACEN programs should be provided with

business class air travel.

ii) Amendments to Terms and Conditions of Service – Inpatient Benefits for New

Employees

25. The EXCO was also informed that with effect from 1 April 2014, SEACEN had outsourced

the administration of the employee medical benefits to AIA Berhad through a Group Medical Plan

(GMP). The move from SEACEN’s past self-insured practice to the GMP was to address

escalating medical expenditure in the long-run; streamline processes and rationalize its internal

human resources involved in administering employee medical benefits. In migrating to the GMP,

the EXCO noted that the principle that “No SEACEN employee is worse-off” was upheld. Dental

treatment and certain medical treatment for current employees and their eligible dependents; and

all the medical and dental treatment of retirees which were not covered under the GMP, were still

administered and covered by SEACEN. The EXCO noted that the implementation of the GMP

has been progressing well and an annual review will be conducted to assess the effectiveness of

the GMP implementation.

26. The EXCO commended SEACEN for the introduction of the GMP to address escalating

medical expenditure, and approved the proposed revision to the Terms and Conditions of Service


to limit the annual inpatient coverage of new employees of SEACEN (who will join SEACEN after

EXCO’s approval) and their eligible dependents, up to the respective inpatient limits imposed

under the GMP. SEACEN will not cover the new employees and their dependents if their

respective annual limits have been exceeded. In the case of existing employees and their

dependents, SEACEN will continue to provide coverage should their respective annual inpatient

limits be exceeded. The annual inpatient limits of SEACEN employees and their eligible

dependents which are based on their respective employee categories are as follows:

In-Hospital Care Executive Director

Director/ Deputy Director

Senior Economist/

Senior Manager/

Economist/ Manager

Executive Officer/

Personal Assistant

Clerical Officer/

Chauffer

Annual inpatient limit per member

RM100,000

RM80,000

RM50,000

RM30,000

RM30,000

iii) Revised Accrual Policy and Procedural Manual

27. The EXCO noted that the Board of Directors had agreed that SEACEN’s Accrual Policy

and Procedural Manual (Manual) should be revised to ensure that SEACEN’s accrual processes

are aligned to accounting standards. The EXCO approved the revised Manual, taking into account

the following:

A key principle emphasized in the Manual was that all accruals should be settled

within the first three months of the next financial year, if any. Any outstanding

accrual after that period should be written back. In addition, no virement was

allowed for accruals.

In the case where an approved SEACEN program for the financial year had to be

rescheduled to the following year due to unforeseen circumstances, a fresh budget

would have to be prepared for the rescheduled program for the following year. In

the event this situation arose after the BOG’s approval had already been obtained

for the following year’s budget, a supplementary budget for the rescheduled

program would have to be submitted for EXCO’s endorsement and Board of

Governors’ approval via circular resolution.

Details of the revised Manual are presented in Attachment 2.


Agenda Item VII: Matters for Information

i) SEACEN Additional Scholarships

28. The EXCO noted that a total of 47 scholarships have been allocated among the five

eligible member banks in FY 2014. As of end of August 2014, a total of eleven SEACEN Additional

Scholarships of the total 15, have been utilised by the five eligible member central banks, while

the remaining four scholarships are expected to be utilised by end of the year.

ii) Directors’ Report and Accounts for Financial Year 31 December 2013

29. The EXCO noted that SEACEN Board of Directors had approved the audited accounts

for the Financial Year ended 31 December 2013 at the 32nd Annual General Meeting (AGM) which

was held on 17 June 2014. SEACEN’s total expenditure for FY2013 amounted to RM9,210,538,

which was 82.1 per cent of the approved budget of RM11,220,300. After adjusting for interest

earned and other income totalling RM222,557, the net expenditure amounted to RM8,987,981.

Based on the agreed equal cost sharing formula of net expenditure, each member bank’s was

RM473,052. The Annual Report of SEACEN has already been circulated to the Board of

Governors and all member central banks’ contributions are expected to be received by end of

September 2014. To-date, eight member central banks have settled their respective contribution.

Agenda Item VIII: Other Matters

30. Deputy Governor Benny Popoitoi, Bank of Papua New Guinea extended his invitation to

all EXCO members and their delegates to Port Moresby, Papua New Guinea for the next EXCO

meeting in September 2015.

Expression of Appreciation

31. The EXCO Chairman expressed appreciation to the EXCO members, EXCO Task Force

for HKMA Membership Application Assessment, Remuneration Committee and representatives

for the fruitful discussions leading to successful outcomes of the Meeting. He also thanked the

SEACEN Executive Director and his dedicated and committed staff for the preparation of the

meeting, and the Secretariat of the Nepal Rastra Bank for the support and arrangements for the

Meeting.

The SEACEN Centre

24 October 2014


Attachment 1

List of Delegates

Member Delegate

Chairman

Dr. Yuba Raj Khatiwada Governor, Nepal Rastra Bank

Autoriti Monetari Brunei Darussalam

1. Mr. Adi Marhain Leman

Assistant Managing Director

2. Ms. Hajah Sufinah Haji Sahat Executive Director

3. Ms. Siti Majidah Adibah Haji Abdul Rahman

Manager Trainee

National Bank of Cambodia

4. Mr. Vada Kim

Director General

5. Mr. Thai Saphear Deputy Secretary General/Director

6. Mr. Khou Vouthy Director

7. Mr. Channarith Meng Deputy Division Chief

People’s Bank of China

8. Mr. ZhengXin Zhang

Deputy Director-General

Reserve Bank of Fiji

9. Ms. Lorraine Seeto

Chief Manager

Reserve Bank of India

10. Mr. Deepak Mohanty

Executive Director


Member Delegate

Bank Indonesia

11. Mr. Hendar

Deputy Governor

12. Ms. Hendy Sulistiyowati Executive Director

13. Mr. Erwin Haryono Director

14. Ms. Sari Nadia Rizal Assistant Director

15. Dr. Pradhono Galih Assistant to the Deputy Governor

16. Ms. Anggis Rakhmi Assistant Director

The Bank of Korea

17. Mr. Byung Wha Jang

Senior Deputy Governor

18. Mr. Seung Ho Baek Team Head

19. Ms. Jinhee Kim Manager/Economist

20. Ms. Hyesun Joo Translator

Bank of the Lao PDR

21. Mr. Sonexay Sithpaxay

Deputy Governor

22. Mrs. Daomanivone Vilayvieng Director General

23. Mrs. Phengsy Phengmoung Deputy Director General

24. Mr. Ackhaphon Nammachack Deputy Governor Secretary


Member Delegate

Bank Negara Malaysia

25. Dr. Sukhdave Singh

Deputy Governor

26. Mr. Marzunisham Omar Assistant Governor

27. Mr. Mohd. Adhari Belal Din Director

28. Mr. Nazrul Hisyam Mohd. Noh Director

29. Mr. William Ben Philip Associate Analyst

The Bank of Mongolia

Absent with Apologies

Central Bank of Myanmar

Absent with Apologies

Nepal Rastra Bank

30. Mr. Gopal Prasad Kaphle

Deputy Governor

31. Mr. Maha Prasad Adhikari Deputy Governor

32. Dr. Min Bahadur Shrestha

Executive Director

33. Mr. Janak Bahadur Adhikari Executive Director

34. Dr. Nephil Matangi Maskay

Director

Bank of Papua New Guinea

35. Mr. Benny B.M.Popoitai

Deputy Governor

36. Ms. Maria Kanari Senior Analyst


Member Delegate

Bangko Sentral ng Pilipinas

37. Mr. Diwa C. Guinigundo

Deputy Governor

38. Ms. Sittie Butocan Acting Deputy Director

Monetary Authority of Singapore

39. Ms. Jacqueline Loh

Deputy Managing Director

40. Mr. David Lim Assistant Director

Central Bank of Sri Lanka

41. Dr. Puwandandawe Nandalal Weerasinghe

Deputy Governor

42. Mrs. Rupasingha Arachchige Swarnalatha Gunaratne Director, Economic Research

43. Dr. Dona Sumila Tharanga Wanaguru

Senior Economist

44. Dr. Ranasinghe Arachchige Anil Perera Senior Economist

Central Bank, Chinese Taipei

45. Dr. Tzong-Yau Lin

Director General

46. Wen-Chieh Tseng Officer

47. Mr. Yen-Cheng Chen Assistant Specialist

Bank of Thailand

48. Mrs. Pongpen Ruengvirayudh

Deputy Governor

49. Mr. Parisun Chantanahom Senior Director

50. Ms. Visa Topothai Team Head


Member Delegate

State Bank of Vietnam

51. Mr. Hai An Ha

Deputy Director General

The SEACEN Centre

52. Mr. Hookyu Rhu

Executive Director

53. Dr. Dongkoo Chang Director

54. Dr. Noppadol Buranathanung Director

55. Mr. Michael Zamorski Adviser

56. Dr. Hans Genberg Adviser

57. Mr. Brian Gerard Nunis Deputy Director

58. Dr. Vincent Lim Choon Seng Senior Economist

59. Ms. Vivien Ong Leng Choo Manager


Attachment 2

ACCRUAL POLICY AND PROCEDURAL MANUAL

1.0 Introduction

The purpose of this policy document and ensuing procedures is to guide all departments

in The SEACEN Centre (SEACEN) on the policy of closing expenditure accounts for the

financial year for ongoing activities or those that are yet to be completed by the year-end

that need to be accrued to the following financial year.

2.0 Definition

Accrual is an accounting entry that is required to ensure that the revenues and

expenditure recorded in the financial year accurately reflect the revenue earned and the

expenditure incurred for the current financial year. Most expenses are recorded in the

accounting system when the expenditure transaction is entered into the accounts

payable records. However, when a financial year ends, there may be expenditure that

have been incurred (i.e. for goods and services received) but have not been recorded

into the system because either the invoice has not been received from the vendor or the

invoice has not been submitted for processing. In order to show the total amount of

expenditure incurred in a financial year, an accrual is entered to reflect the unpaid or

unrecorded expenditure.

3.0 Policy on Accrual of Expenditure

3.1 The general principle holds that all accruals should be settled within the first three months

of the next financial year. No virement is allowed for accruals. Any unutilized budget

http://www.seacen.org/default.aspx


allocation that does not fulfill the stipulated criteria will lapse at the end of the financial

year. SEACEN will allow the accrual of expenditure that has been committed or incurred

during the financial year but not yet paid, which meets any of the following criteria:

3.1.1 Learning and Research Programs and Meetings - Programs that have been

conducted by the end of the financial year but invoices from the suppliers, host

banks and resource speakers for expenditure incurred on behalf of SEACEN, and

other expenditure in connection with those programs, have yet to be received at

the end of the year;

3.1.2 Goods and Services - Goods and services that have been supplied and

rendered respectively during the financial year but not yet invoiced or paid;

3.1.3 Amount due to Employees - Reimbursement to employees for personal or

official claims due from SEACEN during the financial year but not yet paid, eg.

medical, mileage, official travel, etc; and,

3.1.4 Projects - Projects in progress or completed for which, progress payments have

yet to be made.

3.2 With reference to 3.1.1, where an approved SEACEN program for the financial year has

to be rescheduled to the following year due to unforeseen circumstances, a fresh budget

has to be prepared for the rescheduled program for the following year. In the event this

situation arises after the BOG’s approval has already been obtained for the following

year’s budget, a supplementary budget for the rescheduled program has to be submitted

for EXCO’s endorsement and Board of Governors’ approval via circular resolution.

Procedures for Year-end Accruals

4.0 A Circular Notice on Year-end Accruals and Closing of Expenditure Accounts will be sent

to all departments by the first week of next financial year via email or memorandum by

the Senior Manager, Performance Support and Services.


4.1 The Finance Unit will then forward the Statement of Accounts at the close of the Financial

Year to all relevant departments/units of SEACEN for review of the expenditure as at

year-end, by the first week of the next financial year, together with the Application for

Accrual forms (Form 1).

4.2 Any request for accruals must be made by completing the Application for Accrual form

(stating the intended purpose and accrual amount), before submitting to Finance Unit

latest by the third week of the next financial year for compilation and review.

4.3 The Finance Unit (Senior Manager and Manager) will review and verify all requests for

accruals and verify with the respective department/unit for clarification, if necessary, to

check accruals requested for completeness.

4.4 After the review process, the Finance Unit will inform the department/unit to obtain

endorsement from the Director of Department on the Application for Accrual form. If there

is any revision, it will be indicated on the form.

4.5 Next, the Application for Accrual form will be certified the Deputy Director, Performance

and Support Services.

4.6 The Finance Unit will then prepare a summary of all applications for accruals, supported

by the Application for Accrual forms, for approval of the Executive Director.

4.7 The Finance Unit will manually raise journal entries for the provisional accrual opening

balances based on the amounts approved by the Executive Director.

4.8 Listing of journal entry for accrual opening balances will be prepared, checked by the

Manager, Finance Unit, and verified by Senior Manager, Performance and Support

Services, followed by approval of the Deputy Director, Performance and Support

Services.

4.9 The Finance Unit will inform all departments/units of the approved accrual amounts and

file all documents related to the accrual process.

4.10 The Finance Unit will monitor the utilization of accruals and report on a monthly basis. In

the third month of the next financial year, the Unit will report an update of the accruals to


the departments and relevant employees on the accrual balances based on actual

utilization incurred during the first quarter of the next financial year. Departments and/or

relevant employees must respond to the Finance Unit whether the accrual amounts

should be revised if there is overprovision or under-provision.

4.11 The revised accrual amounts (whether to be utilized, over or under provided) will be

reported in the summary table and forwarded to the external auditors for adjustment to

the expenditure accounts and finalize the closing of the financial year accounts.

4.12 The external auditors will prepare and provide Client Journal Entry to confirmed; and

finalized accrual amounts and adjustments be made in the accrual opening balances that

have been posted.

4.13 The reprinted journal entry listing will be checked and verified by Manager, Finance Unit

and Senior Manager, Performance and Support Services, and approved by the Deputy

Director, Performance and Support Services.

4.14 There will be a monitoring of the realization of the accrued amounts or otherwise by the

Manager of Finance Unit and will be duly updated into related account journals. There

will be a quarterly reminder to staff on unutilized accrued amounts.

The SEACEN Centre

19 September 2014

(Approved in 13th SEACEN EXCO Meeting in Kathmandu, Nepal on 19 September 2014)

1 | A p p e n d i x B - K n o w l e d g e M a n a g e m e n t a n d S E A C E N P o r t a l

Appendix B

UPDATE ON SEACEN PORTAL

During FY 2015 up to September 2015, The SEACEN Portal has been used to support the

following events:

Paperless Programs

1. Learning Courses

FS1 – 2nd SEACEN Course on Bank Examiner Foundational Skills Development, 1-13 March

2015, Kuala Lumpur, Malaysia.

MP3 – 2nd SEACEN Intermediate Course on Economics Modelling and Forecasting, 27

September – 2 October 2015, Manila, Philippines.

2. Research Workshops

2 SEACEN Research Workshops on Monetary Policy Transmission in the SEACEN

Economies, March and September 2015, Kuala Lumpur, Malaysia.

2 SEACEN Research Workshops Capital Flows Research Project/Living with Volatilities,

May and September 2015, Kuala Lumpur, Malaysia.

3. SEACEN Policy Meetings back-to-back High-level Seminars, Conferences

SEACEN Directors of Supervision Meeting – 5-7 July 2015, Bangkok, Thailand.

SEACEN Directors of Research and Training Meeting – 20-22 August 2015. Nadi, Fiji.

SEACEN Policy Summit – 7-8 September 2015, Kuala Lumpur, Malaysia.

SEACEN Meeting of Deputy Governors on Financial Stability – 10-11 September 2015,

Kuala Lumpur, Malaysia.


Paperless and Event Management Module

FS9 – SEACEN Signature Course on Systemic Risk and Macroprudential Policy

Implementation, 20-25 September 2015, Seoul, Korea.

At least 1-2 more events to be rolled out for the end-to-end event management module of the

Portal before end-December 2015.

Usage of Portal (Average Hits per Month from January to September 2015)

Over the past 9 months, there were, on average, 3,659 hits per month for the Portal.

There were on average 270 unique users (internal and external) accessing the Portal per

month during the same period. The external users comprise mainly participants and

delegates of courses and meetings.

The audit trail for usage is captured on a monthly basis.

Details are found in the attached Table:

Month Hits Unique

Users

2015-01 3427 224

2015-02 2096 167

2015-03 6976 531

2015-04 2344 214

2015-05 2112 166

2015-06 1901 180

2015-07 2345 210

2015-08 7008 532


2015-09 4726 240

Progress of Strategic Knowledge Assets (SKA) Uploaded in the Portal

SEACEN has in place a Document Management Policy which defines what constitutes

SKAs

SKAs that have been uploaded include:

o SEACEN Export Group (SEG) Database on Capital Flows (in secured site in the

Portal)

o Database of SEACEN participants and speakers

o Database in SEACEN case studies

o SEACEN historical, legal and financial documents

o Annotated agendas and minutes of SEACEN policy meetings (BOG, EXCO, BOD,

DORT)

o Learning materials for paperless events implemented up to September 2015

o Administrative documents of respective SEACEN departments and units

Challenges and Feedback on Portal Usage by Member Central Banks/Monetary Authorities

Access to SEACEN Portal is highly dependent on stable Internet connectivity. For the

usage to be seamless, the host venue must be able to provide the necessary bandwidth.

Any access restrictions by member banks and monetary authorities to external sites may

also impact the user experience.

Strategies and Deliverables for 2015 (Up to Aug 2015) Appendix C1

1 | A p p e n d i x C 1 - S t r a t e g i e s a n d D e l i v e r a b l e s u n d e r t h e S B P 2 0 1 5 – 2 0 1 7 – Y e a r 1

Broad Strategies Deliverables Measure of Success Status Remarks

1. Enhance SEACEN Brand in SEACEN Programs

a) Optimize the Engagement of SEACEN’s Internal Faculty

Take up 10% of Learning Programs (approx. 32 sessions a year)

Successfully achieve targeted initiatives

Internal faculty comprising the 2 Advisers and 1 Senior Economist have played the roles as resource speakers

b) Internal Faculty i) Start to recruit Directors, Senior Economists, Senior Analysts aligned with new organization structure in the second half of 2015.

ii) Leverage on experienced staff of member banks for reputable faculty and experts

Successfully recruited

2. Provide Higher Quality Learning Solutions

a) Create Progressive Modular Program

i) 1 Foundational Course on MMPM

ii) 1 Intermediate Course on MMPM

iii) Foundational Course on FSS

iv) 1 Intermediate Course

on FSS

Ratings Level-1 – min. 4.0/5.0; Level-2 and Level-3 measurement

Benchmark against other training providers

i) Completed with Level 1 evaluation of 4.4 and Level 2 of 17%

ii) To be implemented as planned on 27 Sept – 2 October 2015

iii) Completed with Level 1 of 4.4 and Level 2 of 68%

iv) In the designing stage

Recruitment to

commence in Q2,

2015. Planning in

progress

In progress

MMPM – 58% FSS – 27%

In Progress




Create Financial Stability Self -Assessment Course

(To commence in 2016)

-

b) Create Summit (Cyber Security or other relevant topics)

Implement second annual Cyber-Security Summit for Financial Institution Regulators

Successful Implementation of Summits

Nature of the Summit has been revised to Policy Summit. Theme is on “Macrorudential Policies: Practical Implementation

c) Create New Course on Central Bank Risk Management

1 Central Bank Risk Management Course

Ratings: Level-1 – min. 4.0/5.0; Level-3 measurement

d) Develop Online Learning Programs in the Area of PSS (to commence in 2016)

Prepare proposal to be put up for EXCO and BOG recommendation and approval in 2015

Completed proposal

e) Continue Customized Learning Programs for ASEAN Members to Develop Infrastructure and Institutional Capacities

Design and implement customized learning programs, where appropriate

Well-rated learning programs. Level-1 – min. 4.0/5.0 and Level-2

Completed in

September with 70

delegates

Engaging a Course

Director

Initiative has yet to

commence

Proposal for AADCP funding is under the review of AADCP;

Engaged ISD

4 layers ABIF road map to be finalised




f) Expand Collaboration with SEAG to Enhance SEACEN Learning Programs

Expand collaboration by holding up to 2 Learning Planning Online Forums with SEAG

Higher course ratings

3. Produce Higher Quality Research Output

a) Maintain High-quality SEACEN Financial Stability Journal (SFSJ)

Publish 2 Volumes of SFSJ Peer reviewed

b) Implement SEACEN Supervisory Discussion Room

Convene up to 2 SEACEN Supervisory Issues Discussion Room

Successful implementation

c) Expand Collaboration with SEAG to Enhance SEACEN Research Focus

Expand collaboration by holding up to 2 Research Planning Online Forums with SEAG

Publication of Research Papers

Consultation on the DOR seminar with SEAG members

d) Create Customized Research Programs

1 Collaborative Research Paper with Regional Context

Publication of Research Papers

Mr. Agung from BI as project leader on Fundamental Principles of Central Bank Reporting

Conduct Research Methodology Workshop for Central Banks (to commence in 2016)

-

1 volume

published

New SEAG roles were proposed and agreed at DPSS Meeting, DOS and DORT Meetings

3rd SSDR held on

23 June with 12

members. 2 more

scheduled in Sept

and Nov

In progress




Create a Discussion Forum on SEACEN Central Bank Issues (to commence in 2016

-

e) Create Capital Flows Research Group under the SEG

Implement 1 SEG Workshop for Research

Successful implementation Mr. Chris Becker has been appointed as Project Leader

f) 5 High-Level Seminars Note: S3 (Joint seminar with CEMLA has been put on hold)

Implement S1 Successful implementation Proceedings for S2, S5 and S6

Implement S2 (Just in Time) b/b with DORT Meeting

Implement S4 (11th Meeting with SEG)

Preparations have commenced with host banks on the seminars and meetings

Implement S5 (b/b with EXCO)

Implement S6 (b/b with BOG)

R2 in progress

Completed

SEG successfully

completed

S5 and S6

In progress




g) Initiate the VSP from Member Banks

At least 2 VSP from member banks for up to 6 months

Full recruitment of VSP

Establish Doctoral Internship Program (to commence in 2016)

-

h) Conduct Joint Research with SMEs for Peer Reviewed Journals

- Publication of Paper in Peer Reviewed Journals

4. Provide Additional Services to SEACEN Stakeholders

a) Create a Web-based Distinguished Speakers Lecture Series

Implement at least 1 Distinguished Speakers Web-Based Lecture in second half of 2015

Increased SEACEN visibility in regional and international fora

conducted by David Marsh on “Demystifying the Greek Crisis” on 19 June 2015

Initiate Special Topical/Luncheon Session

(To commence in 2016)

- Alumni engagement satisfaction Survey

5. Build Robust Talent Management Framework

a) Build Robust Talent Management Framework

- -

6. Strengthen Internal Risk Control

a) Strengthen Internal Risk Control

Conduct Annual RCSA Exercise

Compliance with auditing requirements

Initiatives yet to

commence

Initiatives yet to

commence

Initiatives yet to

commence

Initiatives yet to

commence

Web based lecture

conducted

Initiatives yet to

commence




7. Others a) Participate as a working team in the Funding Model Task Force

Two EXCO TF meetings held in July and Aug to discuss on possible options on SEACEN Funding Model.

Total: 7 Broad strategies

At least 20 key initiatives Completion of initiatives agreed

6 initiatives yet to commence

Remaining initiatives ion schedule

To be monitored quarterly

Completed



Note:

Initiatives in good progress and on

schedule

Initiatives yet to commence. Some

delays may be expected

Initiatives not commenced. Delays

in completion expected

Initiatives to commence at a later

date with lead time >3 months

1 Appendix C2 - Progress of Learning Programs for FY2015 (up to August 2015)

Appendix C2

PROGRESS OF LEARNING PROGRAMS FOR FY 2015

(JANUARY – AUG 2015)

CENTRAL BANKING FUNCTIONS

A. Macroeconomic and Monetary Policy Management (MMPM)

No Program Date/Venue/

(Host)

Participation: P – Participant/

Member I – Inst/Member

S – Speaker/ Internal Faculty

(Nos)

Pre-course Engagement

Learning Methods

Evaluation during program Follow-up (Level 3)

Guided survey questions

Reading materials Level 1 Level 2*

Supervisors’ Feedback Others

Internal Faculty/ No. of

Sessions

1 SEACEN Foundational Course on Economic Modeling and Forecasting

11 – 17 January 2015, Siem Reap, Cambodia (National Bank of Cambodia)

P: 23/22 I: 11/10

S: 3/2

- Yes Lecture

Case study

Exercises

Country paper presentations

Panel discussion

4.4 Pre - 59% Post - 70%

Gained - 17%

- - Dr. Hans Genberg/

14/19

Dr. Vincent Lim Choon

Seng 6/19

2 9th SEACEN-BOJ Intermediate Course on Analytics of Macroeconomic and Monetary Policy Management

12 – 24 April 2015, Bandar Seri Begawan, Brunei Darussalam (Autoriti Monetari Brunei Darussalam)

P: 22/22 I: 11/11

S: 7/2

- Yes Lecture

Case study

Exercises

Participants’ presentations

4.3 Pre - 47% Post - 68%

Gained - 46%

Yes - Dr. Hans Genberg

21/38

Dr. Vincent Lim Choon

Seng 2/38



(Host)




(Nos)


Learning Methods






Sessions

3 SEACEN-CCBS/BOE Course on Extracting Information from Financial Markets for Monetary Policy Making

7 – 12 June 2015, Ulaanbaatar, Mongolia (Bank of Mongolia)

P: 25/25 I: 14/13

S: 1/1

- Yes • Lecture • Exercises • Participants’ presentations

4.3 Pre – 36% Post – 59%

Gained – 64%

- - Dr. Hans Genberg

1/19

4 SEACEN Course on Monetary Policy Transmission Mechanisms: Theory and Empirical Assessment

23– 28 August 2015, Indonesia (Bank Indonesia)

P: I: S:

Dr. Hans Genberg

5 2nd SEACEN Intermediate Course on Econometric Modelling and Forecasting

27 September – 2 October 2015, Manila, Philippines (Bangko Sentral ng Pilipinas)

P: I: S:

Dr. Hans Genberg



(Host)




(Nos)


Learning Methods




Supervisors’

Feedback Others


Sessions

6 SEACEN-IMF Course on External Sector Issues

18 – 30 October 2015, Colombo, Sri Lanka (Central Bank of Sri Lanka)

P: I: S:

Dr. Hans Genberg

7 SEACEN Course on Coordination of Monetary and Macroprudential Policies for Macroeconomic and Financial Stability

6-11 December 2015, Kuala Lumpur, Malaysia (The SEACEN Centre)

P: I: S:

Dr. Hans Genberg


B. Financial Stability and Supervision (FSS)


(Host)




(Nos)


Learning Methods






Sessions

1 2nd SEACEN Course on Bank Examiner Foundational Skills Development

1 – 13 March 2015, Kuala Lumpur, Malaysia (The SEACEN Centre)

P: 27/24 I: 14/11

S: 15/1

Yes

FSI Connect

Yes Lecture

Case study

Group work

Presentation by participants

4.4 Pre - 40% Post - 66%

Improvement – 68%

Yes Action planning

Michael Zamorski

9/33

2 SEACEN-FSI Seminar on Stress Testing in Supervision and Risk Management

16 – 19 March 2015, Bangkok, Thailand (Bank of Thailand)

P: 33/27 I: 18/13

S: 9/1

No Yes Case studies

Lectures

Group discussion

Group presentations

Panel Discussions

4.6 No No - Michael Zamorski

2/12

3 SEACEN-Toronto Centre Course on Recovery and Resolution Planning for Weak Banks

19 – 24 April 2015, Siem Reap, Cambodia (National Bank of Cambodia)

P: 32/30 I: 15/13

S: 5/1

No Yes Case studies

Lectures

Group discussion

Group presentations

Panel Discussions

4.3 No No - Michael Zamorski

5/10



(Host)




(Nos)


Learning Methods






Sessions

4 SEACEN Course on Enterprise Wide Risk Management of Banks

3 – 8 May 2015, Indonesia (Bank Indonesia)

P: 32 I: 15 S:11

- Yes Lecture

Case study

Exercises

Country presentations

Panel discussion

4.4 Pre: 37%

Post: 47% Gained: 29%

- - Michael Zamorski

4/19

5 Policy Forum 7 – 8 September 2015, Korea (The Bank of Korea)

P: I: S:

Michael Zamorski

5 SEACEN Course on Systemic Risk and Macro-prudential Policy Implementation

20 – 25 September 2015, Korea (The Bank of Korea)

P: I: S:

Michael Zamorski



(Host)




(Nos)


Learning Methods






Sessions

7 56th SEACEN-Fed Course on Cross Border Risk-Based Supervision

4 – 9 October 2015, Kathmandu, Nepal (Nepal Rastra Bank)

P: I: S:

Michael Zamorski

8 SEACEN Seminar on Liquidity Risk Management and Supervision

1 – 6 November 2015, Taipei, Taiwan (Central Bank, Chinese Taipei)

P: I: S:

Michael Zamorski

9 SEACEN Intermediate Course on Bank Examiner (including Bank Simulation)

22 November – 2 December 2015, Kuala Lumpur, Malaysia (The SEACEN Centre)

P: I: S:

Michael Zamorski


C. Payment and Settlement Systems (PSS)


(Host)




(Nos)


Learning Methods






Sessions

1 2nd SEACEN Course on Oversight of PSS

23 – 27 March 2015, Hanoi, Vietnam (State Bank of Vietnam)

P: 37/32 I: 19/16

S: 5/0

Yes Yes Lecture

Case studies

Country sharing

Group Activities

4.4 Pre - 44% Post - 57%

Gained - 31%

- - -

2 10th SEACEN-BOJ Intermediate Course on Payment and Settlement Systems for Emerging Economies

26 – 30 April 2015, Singapore (Monetary Authority of Singapore)

P: 32//32 I: 15/15 S: 9/0

Yes Yes Lecture

Case study

Exercises

Country paper

presentations

Panel discussion

4.5 Pre - 46% Post - 57%

Gained - 22%

- - -

3 14th SEACEN Advanced Course on Payment and Settlement Systems for Emerging Economies

24 – 28 May 2015, India (Reserve Bank of India)

P: 35/35 I: 12/12 S: 11/0

No Yes Lecture

Case studies

Country sharing

Group Activities

4.6 Pre - 50% Post - 60%

Gained - 19%

- - -


D. Leadership and Governance (LDG)


(Host)




(Nos)


Learning Methods






Sessions

1 2nd SEACEN Seminar on Central Bank Governance: Issues in Central Bank Financing

11 – 13 February 2015, Bali, Indonesia (Bank Indonesia)

P: 26/26 I: 10/10

S: 6/0

No Yes Country Sharing

Lectures

Group discussion

Group presentations

Panel Discussions

4.3 No No - -

2 9th SEACEN Intermediate Leadership Course

10 – 15 May 2015, Seoul, Korea (The Bank of Korea)

P: 30/1 I: 13/1 S: 4/0

Yes Yes Country Sharing

Lectures

Leadership Talk

Group discussion

Group presentations

Role Play (Video

Taping)

Dialogue

4.6 No No - -

3 9th SEACEN Advanced Leadership Course

21 – 26 June 2015, Kuala Lumpur, Malaysia (The SEACEN Centre)

P: 31/31 I: 13/13 S: 5/0

Yes Yes Country Sharing

Lectures

Group discussion

Group presentations

Role Play (Video Taping)

Case Study

4.5 No No -



(Host)




(Nos)


Learning Methods






Sessions


(Host)




(Nos)


Learning Methods






Sessions

4 SEACEN Seminar on Central Bank Risk Management

8 – 13 November 2015, Kuala Lumpur, Malaysia (The SEACEN Centre)

P: I: S:


Level 2* Pre – Pre-test results Post – Post-test results Inc – Increase in knowledge

1 Appendix C3 - Progress of Research Programs FY2015 (up to September 2015)

Appendix C3

Progress of Research Programs for FY2015 (up to September 2015)

_________________________________________________________________________

I. Collaborative Research

_________________________________________________________________________

R1. Monetary Policy Transmission in the SEACEN Economies

Given a well-functioning domestic financial system, monetary policy can exert a substantial

influence upon aggregate demand and thus on the price level. However, in the last two to

three decades, liberalization of trade, investment and financial transactions have been

increasing rapidly resulting in the further integration of global financial markets and the

domestic economies. These developments have somehow challenged the effectiveness of

the transmission of monetary policy.

This research is intended to assess the transmission mechanism of monetary policy through

various channels following the rapid changing financial environment of the SEACEN

economies. One workshop and one seminar will be conducted. The key issues include:

The evolution of the transmission mechanism of monetary policy

Macroprudential policies and monetary Policy

External Influence on monetary policy

Project Leader: Dr. Hao Hong, Visiting Research Economist, The SEACEN Centre.

Discussant: Dr. Hans Genberg, Adviser, Macroeconomic and Monetary Policy Management,

The SEACEN Centre.

Participation: 15 researchers are participating from 8 SEACEN member banks namely from

Autoriti Monetari Brunei Darussalam; Bank Indonesia; Bank Negara Malaysia; The Bank of

Mongolia; Bangko Sentral ng Pilipinas; Central Bank of Sri Lanka; Central Bank, Chinese

Taipei and Bank of Thailand.

The Workshop was conducted on 24-26 March 2015 and the Seminar on 1-3 September 2015

with 18 participants.

The project is expected to be completed by first quarter of 2016.


R2. Research Project for Capital Flows Research Group under the SEACEN Expert

Groups on Capital Flows (SEG)

Given the potential impact of capital flows on price and financial stability, a Research Group,

comprising of the SEG members is proposed. The purposes of this Group, besides sharing

timely information are to: (i) analyze capital flows data; (ii) study the impact on the economy;

and (iii) recommend policy options. Due to the confidentiality of the discussion, the entire

Workshop will be conducted by the internal faculty of SEACEN. For this project, the topic is

“Living with Volatilities: Capital Flows and Their Implications for Central Bank Policies in SEG

Economies”.

This Research Group is distinct from the SEG Meetings and high-level Seminars where the

deliberation centered on more issue-oriented concerns. One Workshop and one Seminar will

be conducted.

Project Leader:

Mr. Chris Becker, Head of Domestic Portfolio and Liquidity Analysis, Reserve Bank of Australia

and concurrently Adviser to the IMF andVisiting Research Economist, The SEACEN Centre

Discussant: Dr. Hans Genberg, Adviser, Macroeconomic and Monetary Policy Management,

The SEACEN Centre.

Participation: 11 researchers are participating from 9 SEG member banks namely from

National Bank of Cambodia; Bank Indonesia; The Bank of Korea, Bank Negara Malaysia; The

Bank of Mongolia; Bangko Sentral ng Pilipinas; Central Bank of Sri Lanka; Central Bank,

Chinese Taipei and Bank of Thailand.

The Workshop was conducted on 11-13 May 2015 and the Seminar was held on 17-19

September 2015.

Preliminary findings of this project was presented at the 11th High-level seminar on SEACEN-

Expert Group on Capital Flows, September 8-10, 2015.


The project is expected to be completed by first quarter of 2016.

R3. Customized Research Project on Fundamental Principles of Central Bank

Financial Reporting: A Preliminary Study in SEACEN Economies

ASEAN Economic Community (AEC) existence, convergence of International Financial

Reporting Standards (IFRS), and significant variations in current accounting practices, are the

issues faced by SEACEN members. These issues raise the need of generally accepted

accounting principles among SEACEN members. The principles will improve the reliability and

relevance of central bank’s financial statements, provided that the principles answer the

objectives of central bank’s financial statement. The objectives of central bank’s financial

statement have to represent the role of central bank in economy development. The

governance of accounting standard setting also affects the reliability and relevance of central

bank’s financial statements. For that reason, this research will answer the following questions:

1. What are the roles of the central bank in the country’s economy development?

2. What are the objectives of central bank financial statements? Do those objectives

relate to the objectives of central banks exist in the first place?

3. How each member view variations of accounting practices and financial reporting

amongst SEACEN members?

4. What are the main principles of central bank financial reporting that can generally

accepted by any SEACEN Members?

5. What are the unique principles of central bank financial reporting for SEACEN

region?

6. What sort of governance of accounting standard setting process that will improve

the reliability and relevance of central bank’s financial statements?

Project Leaders: Mr. Agung Hastowo, Deputy Director, Department of Internal Financial

Management, Bank Indonesia and Mr. Tony Indarto, Department of Internal Financial

Management, Bank Indonesia, and concurrently Visiting Research Economists, The SEACEN

Centre.


Discussant/External Discussant: Mr. Michael Zamorski, Adviser, Financial Stability, The

SEACEN Centre and Dr. Sylvia Veronica N.P. Siregar, Department of Accounting, Faculty of

Economics, Universitas Indonesia.

Participation: 9 researchers are participating from 5 SEACEN member banks namely from

National Bank of Cambodia, Reserve Bank of India, Bangko Sentral ng Pilipinas; Central

Bank of Sri Lanka; and Bank of Thailand.

The Workshop was conducted on 29-30 April 2015 and the Seminar will be held tentatively on

7-9 October 2015. A focus group discussion via webinar was conducted on 13 August 2015.

The Project is expected to be completed by first quarter of 2016.

__________________________________________________________________

II. High-Level Seminars

_________________________________________________________________________

S1. Harmonizing Micro-prudential Policies with Macro-prudential Supervision

The focus of macro-prudential policies is quite distinct from micro-prudential policies. But it is

now recognized that for policies of central banks to be effective (to ensure price, financial and

economic stability), an arsenal of monetary policy, micro-prudential policy as well as macro-

prudential supervision policies must be implemented consistently. While it has been long

argued that for the financial system to be sound each individual institution must also be sound.

However, this may not sufficient. One needs macro prudential supervision to manage the

system-wide (systemic) risks-that can develop during boom-bust financial cycles.

Currently, the framework of macroprudential tools and how it can be integrated with

microprudential and monetary policy are not well defined. Hence, the objectives of this

seminar among others, intends to study the effective coordination mechanisms, particularly at

both at the policy formulation stage as well as arrangements for monitoring.

Proposed Dates: 17 – 19 November 2015

Proposed Venue: Yogyakarta, Indonesia

Proposed Host: Bank Indonesia

https://www.google.co.id/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CCIQFjAB&url=http%3A%2F%2Fold.ui.ac.id%2Fid%2Fdirectories%2Flecture%2Farchive%2F247&ei=ElwiVa_kLcfhuQTj7YHoBA&usg=AFQjCNGAsj34T8YoNIgrmJe86rzHCI6gZA&sig2=JllrJLjboaW8bUx3qCm7oA&bvm=bv.89947451,d.c2E

https://www.google.co.id/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CCIQFjAB&url=http%3A%2F%2Fold.ui.ac.id%2Fid%2Fdirectories%2Flecture%2Farchive%2F247&ei=ElwiVa_kLcfhuQTj7YHoBA&usg=AFQjCNGAsj34T8YoNIgrmJe86rzHCI6gZA&sig2=JllrJLjboaW8bUx3qCm7oA&bvm=bv.89947451,d.c2E


S2. 4th SEACEN-CEMLA High-level Conference

Annual joint conference has been put on hold until further notice.

_________________________________________________________________________

III. Seminars (Back-to-back with Meetings)

_________________________________________________________________________

S3. High-Level Seminar (Just-in-Time), Back-to-back with the Meeting of the Directors

of Research and Training

The Seminar was held back-to-back with the Directors of Research and Training High-Level

Meeting.

The theme for the Seminar, after consultation with the SEAG-MMPM members was

“Globalisation: Impact on Central Bank Strategies and Emerging Economies” focussing

on global value chains, interconnectedness and competitiveness.

The speakers Included Dr. Daria Taglioni, Global Solution Lead for Global Value Chains in the

Trade and Competitiveness Global Practice, The World Bank and Dr. Hans Genberg,

Executive Director, SEACEN.

Date: 20 – 22 August 2015

Venue: Nadi, Fiji

Host: Reserve Bank of Fiji


S4. 11th Meeting and Seminar of the SEACEN Expert Group on Capital Flows

This meeting is for senior policymakers to discuss polices regarding capital flows. SEACEN

will consult the co-chairs for the implementation of these two events. The meeting was held

back to back with the Seminar on capital flows. The theme for this year Seminar was “The

Search for the Framework to Manage Capital Flows for the Emerging Economies”.

This objective of this seminar are:

discuss the current trends in capital flows;

review the different policy approaches and their effectiveness in different scenarios

(e.g., different economic conditions, other related policy measures, etc.);

policy hierarchy and sequencing; and,

adequacy of financial, institutional infrastructure and regional cooperation to support

the framework to manage capital flows.

This seminar was conducted on 8 – 10 September 2015 in Kuala Lumpur.

Speakers included Ms. Kumiko Okazaki, Director, International Coordination Division and

Global Economic Research Division, International Department, Bank of Japan , Mr. Diwa C.

Guinigundo , Deputy Governor, Bangko Sentral ng Pilipinas, Professor Masahiro Kawai,

University of Tokyo and Former Dean of ADBI and Mr. Chris Becker, Visiting Research

Economist, SEACEN/Head of Domestic Portfolio and Liquidity Analysis, Reserve Bank of

Australia/Adviser to the IMF and Dr. Rajeev Jain, Assistant Adviser, Division of International

Trade and Finance, Department of Economic and Policy Research, Reserve Bank of India

Date: 8 – 10 September 2015

Venue: Kuala Lumpur

Host: SEACEN


S5. SEACEN-BIS EXCO Seminar (back-to-back with Meeting of 14th SEACEN EXCO)

with the theme “Financial Inclusion Strategies: The Role of Central Banks.”

Speakers will include Dr. Yaga Venugopal Reddy, Former Governor, Reserve Bank of India,

Professor Sumit Agarwal, National University of Singapore, Mr. Norbert Mumba, Deputy

Executive Director, The Alliance for Financial Inclusion, SEACEN Internal Faculty and

representatives from the BIS.

Date: 1-4 October 2015

Venue: Port Moresby, Papua New Guinea

Host: Bank of Papua New Guinea

S6. 51st SEACEN Governors’ Conference/ High-level Seminar (back-to-back with the

35th Meeting of the SEACEN Board of Governors with the theme

“Enhancing Economic Resilience to the Changing Global Environment.”

Speakers will include Governor Agustin Carstens, Banco de Mexico, Nobel laureate

economist, Professor Robert C. Merton, MIT Sloan School of Management and SEACEN

Governors.

Date: 25-27 November 2015

Venue: Manila, Philippines

Host: Bangko Sentral ng Pilipinas


OTHER COLLABORATIVE EFFORTS:

_____________________________________________________________________

IV. Online Forum (proposed)

_________________________________________________________________________

F1. 1-2 research online fora with SEG, subject to demand

F2. 3-4 SEACEN Supervisory Discussion Room (SSDR) Online fora (in collaboration with

SEACEN Adviser)

_________________________________________________________________________

V. Dissemination and Publications (proposed)

________________________________________________________________________

1. 3 publications from high-level Seminar/Conferences and research collaborative

projects (forthcoming)

2. 3-5 Working Papers (two papers published, two forthcoming

3. 2 SEG reports (one completed and one forthcoming)

4. 3 background papers for high-level meetings (subject to request)

5. 2 Volumes of SEACEN Financial Stability Journal (SFSJ) (in collaboration with

SEACEN Adviser, one completed, one forthcoming

6. 2 case studies/ notes (completed)

7. Various case studies and caselets by internal faculty for use in training programs

1 | A p p e n d i x C 4 – P r o g r e s s o f M e e t i n g s f o r F Y 2 0 1 5 ( u p t o A u g u s t 2 0 1 5 )

Appendix C4

PROGRESS OF MEETING/HIGH-LEVEL SEMINARS FOR FY 2015 (Up to Aug 2015)

No Meeting Date / Venue

(Host) Outcome

Completed Meetings/ High-Level Seminars

1.

14th Meeting of SEACEN Directors of Payment and Settlement Systems (back-to-back with Seminar)

28 – 30 May 2015

Bengaluru (Reserve Bank of India)

The Directors discussed and reviewed the effectiveness of SEACEN learning programs in the area of payment and settlement systems, and provided input for learning programs to be proposed for 2016. Theme: Resilience of Payment Systems to Cyber Crime Attended by 28 delegates from 15 member banks

2.

28th Meeting of SEACEN Directors of Supervision (back-to-back with 16th SEACEN Conference)

6 – 7 August 2015

Bangkok (Bank of Thailand)

The Directors discussed and reviewed the effectiveness of SEACEN learning programs in the area of banking supervision and financial stability, and provided input for learning programs to be proposed for 2015. Conference theme: Promoting Banking System Stability in a Changing Environment Attended by 27 delegates from 18 member banks and 1 non-member bank

3.

37th Meeting of SEACEN Directors of Research and Training (back-to-back with DOR and DOT Seminars)

20 - 22 August 2015

Nadi (Reserve Bank of Fiji)

The Directors discussed and reviewed the proposed learning, research and meeting/high-level seminar programs for 2016. With the inputs and guidance from DORT, SEACEN will submit the proposed SEACEN programs to the EXCO and BOG for consideration and approval respectively. 39 participants from 18 member banks attended the DORT Meeting Theme: Globalization: Impact on Interconnectedness and Central Bank Policies



(Host) Outcome

DOR Seminar: Globalization : Impact on Central Bank Strategies of Emerging Economies Attended by 22 participants from 15 member banks and 3 non member banks DOT Seminar: Globalization: Impact on Talent Management Strategies in Central Banks Attended by 13 member banks and 2 non-member banks

4.

6th Meeting of Deputy Governors in charge of Financial Stability and Banking Supervision (back-to-back with High-Level Seminar on Financial Stability)

10 - 11 September 2015

Sasana Kijang (Nepal Rastra Bank)

The Deputy Governors discussed and reviewed the effectiveness of SEACEN learning programs in the area of banking supervision and financial stability for year 2015. They also provided input for the proposed learning programs for year 2016. Seminar theme: Maintaining Regional Financial Stability Attended by 27 participants form 17 member banks

5.

(To be Implemented) 11th SEACEN-BOJ SEACEN Expert Group (SEG) Meeting/Seminar on Capital Flows

8-10 September 2015 Sasana Kijang

(The SEACEN Centre)

The Seminar is to update the officials of SEG members on the latest economic trends and capital flows. It also aims to expose participants to the latest issues pertaining to the monitoring of capital flows. SEG Meeting is held once in every two years. The main objectives of the SEG are:

To develop a regional framework to promote information sharing on capital flows among members; and

To draw up concrete and practical proposals that members can implement individually or collectively to enhance the management of capital flows.

Attended by 18 delegates from 12 SEG members



(Host) Outcome

5.

14th Meeting of SEACEN Executive Committee (back-to-back with high-level Seminar)

1 – 3 October 2015

Port Moresby (Bank of Papua New Guinea)

The preparation on SEACEN-BIS Executive Seminar and Meeting is in progress.

6.

51st SEACEN Governors’ Conference/High-Level Seminar and 35th Meeting of SEACEN Board of Governors

25 - 27 November 2015

Manila (Bangko Sentral ng Pilipinas)

Preparation on the Meeting and High-Level Seminar is progressing well. The theme for the Governors’ Conference/High-Level Seminar is based on the topical theme: ‘

1 Appendix C5 - SEACEN Learning and Research Scorecard

Appendix C5 SEACEN Learning and Research Scorecard

INDICATORS OY 2011/12 OP 2012 FY2013 FY 2014

A. IMPACT

1. Learning Evaluation – Level 1 (min. requirement : 4/5) 4.5 4.6 4.6 4.5

2. Overall Research Evaluation (13 questions) (min. requirement : 4/5) a) Timeliness of the Project b) Reference for Central Bank Policies c) Usefulness for Training Courses d) Thought Leadership

4.1 4.3 4.0 4.0 -

4.1 4.5 4.0 4.5 4.3

4.1 4.4 4.1 4.1 -

4.2 4.5 4.3 4.2 4.0

B. OPERATIONS MANAGEMENT

1. Total Training Programs 24 15 24 22+

2. Total Training Days 114 76 115 114

3. Total Training Man-Days 3,627 2,413 3,457 3,331

4. Total Participating Institutions 53 62 57 51

5. Total Participants: 771 490 773 696

a) Member central banks (719) (432) (713) (620)

b) Non-member central banks and others (52) (58) (60) (76)

6. No. of Speakers 217 121 202 183

7. No. of Research Projects (min. requirement : 4) 4 3 4* 6@

8. No. of Research Participants 56 52 61** 126

9. No. of Case Studies 6 3 3 5

C. FINANCIAL MANAGEMENT

1. Budget Allocation (Training : Research : Administration) 53 : 31 : 17 50 :28: 22 50 : 26 : 24 46:21:33

2. Budget Utilization (%) 86 84 82 77.4

3. Tuition Fees Collected (RM‘000) 192 81 125 142

4. Investment per Training Man-Day (RM) 528 528 575 663

n/a.: Not available * Including 30th Anniversary Conference (Signature Research) + 1 program was postponed to FY2015 and 1 put on hold ** Excluding participation from 30th Anniversary Conference @ Including 2 Research Projects, 2 Seminars and 2 SEG Fora

Approved Budget

FY2015

Actual

Expenditure

Jan - Aug '15

Estimated

Expenditure

Sep - Dec '15

Estimated

Utilisation of

Expenditure

Utilisation

(%) Balance

I. TRAINING

A. EXPENDITURE ON STAFF 1,429,100.00 734,166.00 518,026.00 1,252,192.00 87.62 176,908.00

Salaries 995,700.00 594,725.00 285,132.00 879,857.00 88.37 115,843.00

Merit Payments 156,300.00 0.00 142,566.00 142,566.00 91.21 13,734.00

Employees Provident Fund 223,100.00 103,441.00 75,828.00 179,269.00 80.35 43,831.00

Recruitment & Repatriation 0.00 0.00 10,000.00 10,000.00 n.a. -10,000.00

Expatriate Allowance 54,000.00 36,000.00 4,500.00 40,500.00 75.00 13,500.00

Education Allowance 0.00 0.00 0.00 0.00 n.a. 0.00

Write back of FY2014 Accrual Overprovision 0.00 0.00 0.00 0.00 n.a. 0.00

B. DEVELOPMENT OF LEARNING CONTENT 106,700.00 15,706.97 82,700.00 98,406.97 92.23 8,293.03

a) Case Studies 66,000.00 15,706.97 42,000.00 57,706.97 87.43 8,293.03

CS1: Advancing Inclusive Financial System in the Next

Decade

6,600.00 7,193.80 0.00 7,193.80 109.00 -593.80

CS2: Building on the Counter-Cyclical Buffer

Consensus: Asian Empirical Test

6,600.00 8,513.17 0.00 8,513.17 128.99 -1,913.17

Case Study for Learning's 52,800.00 0.00 42,000.00 42,000.00 79.55 10,800.00


b) Curriculum Design 40,700.00 0.00 40,700.00 40,700.00 100.00 0.00

Expenditure for content experts 40,700.00 0.00 40,700.00 40,700.00 100.00 0.00

C. TRAINING PROGRAMMES 4,649,200.00 1,781,298.72 1,601,311.49 3,382,610.21 72.76 1,266,589.79

a) Macroeconomic & Monetary Policy

Management (MMPM)

1,028,000.00 225,268.96 311,305.10 536,574.06 52.20 491,425.94

9th SEACEN-BOJ Course on Analytics on

Macroeconomic and Monetary Policy Management -

Brunei

258,700.00 82,900.75 0.00 82,900.75 32.05 175,799.25

SEACEN Foundational Course on Econometric

Modeling and Forecasting - Cambodia

113,900.00 46,700.94 0.00 46,700.94 41.00 67,199.06

SEACEN Intermediate Course on Econometric

Modeling and Forecasting - Philippines

103,200.00 254.40 102,945.60 103,200.00 100.00 0.00

SEACEN Course on Monetary Policy Transmission

Mechanisms: Theory and Empirical Assessment -

Indonesia

109,000.00 2,749.70 106,250.30 109,000.00 100.00 0.00

SEACEN Course on External Sector Issues - Sri

Lanka

102,300.00 190.80 102,109.20 102,300.00 100.00 0.00

SEACEN Course on Market Intelligence Primer for

Policy Making - Mongolia

181,400.00 92,472.37 0.00 92,472.37 50.98 88,927.63

SEACEN Course on Coordination of Monetary and

Macroprudential Policies for Macroeconomic and

Financial Stability - SEACEN

159,500.00 0.00 0.00 0.00 0.00 159,500.00


b) Financial Stability & Bank Supervision (FS) 1,668,500.00 367,687.72 968,792.59 1,336,480.31 80.10 332,019.69

SEACEN Course on Bank Examiner Foundational

Skills Development - SEACEN

113,100.00 109,081.92 0.00 109,081.92 96.45 4,018.08

SEACEN Intermediate Course on Bank Examination -

SEACEN

172,400.00 110.01 172,289.99 172,400.00 100.00 0.00

SEACEN Course on System Stress Testing -

Thailand

131,200.00 34,216.75 0.00 34,216.75 26.08 96,983.25

SEACEN-Toronto Centre Course on Recovery and

Resolution Planning for Weak Banks - Cambodia

169,300.00 53,021.15 90,000.00 143,021.15 84.48 26,278.85

SEACEN Course on Enterprise Wide Risk

Management of Banks - Indonesia

128,700.00 92,328.89 7,000.00 99,328.89 77.18 29,371.11

SEACEN Course on Liquidity Risk Management and

Supervision - Chinese Taipei

106,800.00 0.00 106,800.00 106,800.00 100.00 0.00

SEACEN Policy Summit 2015- SEACEN 500,000.00 74,631.60 250,000.00 324,631.60 64.93 175,368.40

56th SEACEN Fed Reserve Course on Cross Border

Risk-Based Supervision - from Nepal to SEACEN (5

days)

164,900.00 4,043.00 160,857.00 164,900.00 100.00 0.00

SEACEN Course on Macro-prudential Policy

Implementation - Korea

182,100.00 254.40 181,845.60 182,100.00 100.00 0.00


Appendix C6

(in Ringgit Malaysia)

Classification

STATEMENT OF ESTIMATED EXPENDITURE FOR FINANCIAL YEAR ENDED 2015

Approved Budget

FY2015

Actual

Expenditure

Jan - Aug '15

Estimated

Expenditure

Sep - Dec '15

Estimated

Utilisation of

Expenditure

Utilisation

(%) Balance

Appendix C6


Classification


c) Payment and Settlement Systems (PSS) 471,500.00 282,340.00 9,000.00 291,340.00 61.79 180,160.00

10th SEACEN-BOJ Intermediate Course on Payment

and Settlement Systems for Emerging Economies -

Singapore

118,500.00 110,930.98 0.00 110,930.98 93.61 7,569.02

SEACEN Course on Oversight of Payment and

Settlement Systems - Vietnam

164,700.00 76,550.35 0.00 76,550.35 46.48 88,149.65

SEACEN Advanced Course on Payment and

Settlement Systems for Emerging Economies - India

188,300.00 94,858.67 9,000.00 103,858.67 55.16 84,441.33

d) Leadership and Governance (LDG) 1,481,200.00 906,002.04 312,213.80 1,218,215.84 82.25 262,984.16

9th SEACEN Intermediate Leadership Course - Korea 237,500.00 239,227.11 0.00 239,227.11 100.73 -1,727.11

9th SEACEN Advanced Leadership Course -

SEACEN

497,700.00 378,937.74 0.00 378,937.74 76.14 118,762.26

Seminar on Central Bank Governance-Indonesia 433,500.00 287,550.99 0.00 287,550.99 66.33 145,949.01

SEACEN Seminar of Risk Management for Central

Bank - SEACEN

312,500.00 286.20 312,213.80 312,500.00 100.00 0.00


D. MEETINGS 986,000.00 114,049.00 568,245.60 682,294.60 69.20 303,705.40

28th Meeting of SEACEN Directors of Supervision -

Thailand

72,900.00 14,125.27 4,000.00 18,125.27 24.86 54,774.73

14th Meeting of Directors of Payment and Settlement

Systems - India

86,100.00 60,224.93 0.00 60,224.93 69.95 25,875.07

37th Meeting of SEACEN Directors of Research and

Training (back-to-back with DOR and DOT Seminars) -

Fiji

319,400.00 39,190.00 150,000.00 189,190.00 59.23 130,210.00

6th Meeting of Deputy Governors in charge of

Financial Stability and Banking Supervision (back-to-

back- with High-Level Seminar on Financial Stability -

from Nepal to SEACEN

94,500.00 254.40 94,245.60 94,500.00 100.00 0.00

14th Meeting of SEACEN Executive Committee (back-

to-back with High- Level Seminar) - Papua New

Guinea

166,800.00 254.40 110,000.00 110,254.40 66.10 56,545.60

51th SEACEN Governors' Conference and 34th

Meeting of SEACEN Board of Governors - Philippines

246,300.00 0.00 210,000.00 210,000.00 85.26 36,300.00

TOTAL GROSS TRAINING EXPENDITURE 7,171,000.00 2,645,220.69 2,770,283.09 5,415,503.78 75.52 1,755,496.22

E. BANK OF JAPAN GRANT

PROGRAMMES FINANCED BY BOJ 1/ 303,000.00 102,783.33 0.00 102,783.33 33.92 200,216.67

9th SEACEN-BOJ Course on Analytics on

Macroeconomic and Monetary Policy Management -

Brunei

258,700.00 33,668.73 0.00 33,668.73 13.01 225,031.27

10th SEACEN-BOJ Intermediate Course on Payment

and Settlement Systems for Emerging Economies -

Singapore

118,500.00 69,114.60 0.00 69,114.60 58.32 49,385.40

Difference in budget - JPY10M = RM (FY2015) -74,200.00 0.00 0.00 0.00 0.00 -74,200.00

II. TOTAL NET TRAINING EXPENDITURE 6,868,000.00 2,542,437.36 2,770,283.09 5,312,720.45 77.35 1,555,279.55

PERCENTAGE OF TOTAL BUDGET 52.51 50.241/

Expected total grant from BOJ is JPY 10 million (approx. RM303,000) at beginning FY2015. Total BOJ grant received are based on actual expenditure incurred and fluctuated of exchange rate.

Approved Budget

FY2015

Actual

Expenditure

Jan - Aug '15

Estimated

Expenditure

Sep - Dec '15

Estimated

Utilisation of

Expenditure

Utilisation

(%) Balance

Appendix C6


Classification


II. RESEARCH

A. EXPENDITURE ON STAFF 1,210,300.00 405,865.20 197,628.00 603,493.20 49.86 606,806.80

Salaries 594,200.00 312,988.00 111,936.00 424,924.00 71.51 169,276.00

Merit Payments 94,400.00 0.00 55,968.00 55,968.00 59.29 38,432.00

Employees Provident Fund 137,400.00 59,468.00 29,724.00 89,192.00 64.91 48,208.00

Recruitment & Repatriation 33,300.00 15,409.20 0.00 15,409.20 46.27 17,890.80

Expatriate Allowance 54,000.00 18,000.00 0.00 18,000.00 33.33 36,000.00

Education Allowance 0.00 0.00 0.00 0.00 n.a. 0.00

Visiting Scholar Program (VSP) 297,000.00 0.00 0.00 0.00 0.00 297,000.00

Write back of FY2014Accrual Overprovision 0.00 0.00 0.00 0.00 n.a. 0.00

B. RESEARCH PROGRAMMES 1,078,600.00 199,627.38 535,673.02 735,300.40 68.17 343,299.60

a) In-house and Collaborative Projects 386,500.00 168,201.38 198,413.02 366,614.40 94.85 19,885.60

RP1 : Monetary Policy Transmission in the SEACEN

Economies

133,500.00 34,168.73 97,000.00 131,168.73 98.25 2,331.27

RP2 : Capital Flows Research Group under the

SEACEN Expert Groups on Capital Flows (SEG)

95,500.00 40,827.57 52,000.00 92,827.57 97.20 2,672.43

RP3: Customised Research Project 55,900.00 6,486.98 49,413.02 55,900.00 100.00 0.00

RP4: Advancing Inclusive Financial System in the Next

Decade

48,200.00 39,423.44 0.00 39,423.44 81.79 8,776.56

RP5: Building on the Counter-Cyclical Buffer

Consensus:Asian Empirical Test

53,400.00 47,294.66 0.00 47,294.66 88.57 6,105.34


b) On-Going Projects 36,800.00 0.00 0.00 0.00 0.00 36,800.00

SEACEN Policy Working Papers 36,800.00 0.00 0.00 0.00 0.00 36,800.00


c) High-Level Seminar 605,800.00 31,426.00 337,260.00 368,686.00 60.86 237,114.00

11th SEG High Level Seminar 63,600.00 0.00 63,600.00 63,600.00 100.00 0.00

(Financed by BOJ 1/

) 0.00 0.00 n.a. 0.00

Hamonizing Micro-Prudential Policies and Macro-

Prodential Supervision

271,100.00 0.00 271,100.00 271,100.00 100.00 0.00

Just-in-Time Seminar (back-to-back with DORT

Meeting) - Fiji

271,100.00 31,426.00 2,560.00 33,986.00 12.54 237,114.00

d) Distinguished Speakers Web Lecture Series 49,500.00 0.00 0.00 0.00 0.00 49,500.00

Distinguished Speakers Web Lecture Series 49,500.00 0.00 0.00 0.00 0.00 49,500.00

II. TOTAL RESEARCH EXPENDITURE 2,288,900.00 605,492.58 733,301.02 1,338,793.60 58.49 950,106.40

PERCENTAGE OF TOTAL BUDGET 17.50 12.66

III. INSTITUTIONAL

A. EXPENDITURE ON STAFF 3,172,900.00 1,778,553.06 1,448,548.00 3,227,101.06 101.71 -54,201.06

Salaries 1,674,000.00 1,078,584.00 645,888.00 1,724,472.00 103.02 -50,472.00

Merit Payments 272,300.00 0.00 322,944.00 322,944.00 118.60 -50,644.00

Employees Provident Fund 382,300.00 205,003.00 186,636.00 391,639.00 102.44 -9,339.00

Recruitment & Repatriation (incoming & outgoing) 37,900.00 15,672.80 15,000.00 30,672.80 80.93 7,227.20

Expatriate Allowance 120,000.00 88,000.00 56,000.00 144,000.00 120.00 -24,000.00

Medical Expenses 327,000.00 263,868.47 63,000.00 326,868.47 99.96 131.53

Staff Development 100,000.00 35,993.70 40,000.00 75,993.70 75.99 24,006.30

Life Insurance Scheme 42,600.00 36,583.77 0.00 36,583.77 85.88 6,016.23

Utilities and Servant 9,000.00 6,271.31 2,200.00 8,471.31 94.13 528.69

Overtime 7,200.00 4,234.11 2,000.00 6,234.11 86.58 965.89

Staff Holiday Benefits 16,500.00 4,639.27 10,000.00 14,639.27 88.72 1,860.73

Service and Retirement Awards 25,500.00 9,500.00 12,500.00 22,000.00 86.27 3,500.00

Optical Benefit 3,500.00 0.00 2,500.00 2,500.00 71.43 1,000.00

Staff Sundry Payment 7,500.00 0.00 5,000.00 5,000.00 66.67 2,500.00

Overseas Travel 85,000.00 32,710.49 40,000.00 72,710.49 85.54 12,289.51

Accident Insurance 22,600.00 13,644.14 4,880.00 18,524.14 81.97 4,075.86

Staff Annual Dinner/Family Day & Activities 40,000.00 0.00 40,000.00 40,000.00 100.00 0.00

Write back of FY2014 Accrual Overprovision 0.00 -16,152.00 0.00 -16,152.00 n.a. 16,152.00

1/ Expected total grant from BOJ is JPY 10 million (approx. RM330,000) at beginning FY2014. Total BOJ grant received are based on actual expenditure incurred and fluctuated of exchange rate.

Approved Budget

FY2015

Actual

Expenditure

Jan - Aug '15

Estimated

Expenditure

Sep - Dec '15

Estimated

Utilisation of

Expenditure

Utilisation

(%) Balance

Appendix C6


Classification


B. ADMINISTRATIVE EXPENSES 180,900.00 87,366.56 66,100.00 153,466.56 84.84 27,433.44

Stationery & Supplies 19,500.00 8,012.50 4,000.00 12,012.50 61.60 7,487.50

Vehicle Maintenance 19,900.00 19,199.45 3,600.00 22,799.45 114.57 -2,899.45

Telephone & Fax 75,300.00 22,919.11 13,500.00 36,419.11 48.37 38,880.89

Postage & Courier Service 4,200.00 2,352.31 800.00 3,152.31 75.06 1,047.69

Company Audit & Secretarial 7,500.00 6,426.50 1,000.00 7,426.50 99.02 73.50

Local Travel 3,600.00 3,207.20 600.00 3,807.20 105.76 -207.20

Entertainment 9,600.00 4,494.28 3,000.00 7,494.28 78.07 2,105.72

In-house Printing 6,000.00 450.72 1,000.00 1,450.72 24.18 4,549.28

Greeting Cards 1,300.00 934.00 600.00 1,534.00 118.00 -234.00

Recruitment Expenses 26,000.00 15,538.40 34,000.00 49,538.40 190.53 -23,538.40

Miscellaneous Expenses 8,000.00 3,832.09 4,000.00 7,832.09 97.90 167.91


C. PREMISES AND EQUIPMENT 30,700.00 10,143.93 17,600.00 27,743.93 90.37 2,956.07

Equipment Maintenance 4,900.00 0.00 2,000.00 2,000.00 40.82 2,900.00

Equipment Insurance 9,000.00 9,083.93 0.00 9,083.93 100.93 -83.93

Premises Maintenance 16,800.00 1,060.00 15,600.00 16,660.00 99.17 140.00

D. COMPUTERISATION 268,000.00 171,081.75 96,918.25 268,000.00 100.00 0.00

Hardware 25,700.00 16,279.00 9,421.00 25,700.00 100.00 0.00

Hardware Maintenance 16,500.00 358.90 16,141.10 16,500.00 100.00 0.00

Internet & Related Communication 18,600.00 11,181.07 7,418.93 18,600.00 100.00 0.00

Software Program 207,200.00 143,262.78 63,937.22 207,200.00 100.00 0.00


E. MEMBERSHIP 1,500.00 1,000.00 0.00 1,000.00 66.67 500.00

Malaysian Employer Federation 1,500.00 1,000.00 0.00 1,000.00 66.67 500.00

F. COMMUNICATIONS 257,800.00 222,834.49 18,000.00 240,834.49 93.42 16,965.51

a) Institutions Publications 63,500.00 31,383.09 18,000.00 49,383.09 77.77 14,116.91

SEACEN Programme 2015 8,400.00 11,200.23 0.00 11,200.23 133.34 -2,800.23

SEACEN Profile 2015 (with web updates) 4,700.00 3,670.20 0.00 3,670.20 78.09 1,029.80

Annual Report 2014 4,600.00 3,614.60 0.00 3,614.60 78.58 985.40

SEACEN Financial Stability Journal 31,500.00 6,893.17 15,000.00 21,893.17 69.50 9,606.83

SEACEN E-Alumni Updates 1,700.00 0.00 0.00 0.00 0.00 1,700.00

Publication Design and Distribution 12,600.00 6,004.89 3,000.00 9,004.89 71.47 3,595.11

Write back of FY2014 Accrual Overprovision 0.00 0.00 0.00 n.a. 0.00

b) Communications Activities 3,800.00 794.68 0.00 794.68 20.91 3,005.32

Communications Activities 3,800.00 794.68 0.00 794.68 20.91 3,005.32

c) Knowledge Management 9,800.00 5,236.38 0.00 5,236.38 53.43 4,563.62

Periodicals 6,800.00 3,513.90 0.00 3,513.90 51.68 3,286.10

Books 3,000.00 1,722.48 0.00 1,722.48 57.42 1,277.52

d) Database Subscriptions 180,700.00 185,420.34 0.00 185,420.34 102.61 -4,720.34

Database subscriptions 180,700.00 185,420.34 0.00 185,420.34 102.61 -4,720.34

G. CONTINGENCY 10,600.00 295.57 4,185.00 4,480.57 42.27 6,119.43

Contingency - 5% of (B + C) 10,600.00 295.57 4,185.00 4,480.57 42.27 6,119.43

III. TOTAL INSTITUTIONAL EXPENDITURE 3,922,400.00 2,271,275.36 1,651,351.25 3,922,626.61 100.01 -226.61

PERCENTAGE OF TOTAL BUDGET 29.99 37.10

TOTAL (I + II + III) 13,079,300.00 5,419,205.30 5,154,935.36 10,574,140.66 80.85 2,505,159.34

PERCENTAGE 100.00% 80.85% 19.15%

Appendix D – Proposed Appointment of External Auditors

Appendix D Proposed Appoint of External Auditors: Survey on Proposals Received from Audit Firms

Aspect

Audit Firms Considered

SJ Grant Thornton Halim & Lee PKF Malaysia PwC KMPG Ernst & Young

Year of establishment 1974 1983 1969 n/a 1983 n/a

International affiliation Yes Yes Yes Yes Yes Yes

Nation's top 10 accounting firms, based on *Top 10 of Malaysia

Yes Yes# No Yes Yes Yes

Size of manpower 13 partners, directors and principals; and

more than 250 personnel

8 partners with a network 160 staff in 6

offices nationwide

150 partners and staff in 5 offices

nationwide

Over 2,000 staff in 6 offices nationwide

1,900 staff positioned in 8 offices nationwide

n/a

Additional information SEACEN’s auditors since 1989

n/a Ranked as top 10 accounting networks (UK practice in top 8)

Largest audit and accounting firm

which began operations in

Malaysia in 1900

n/a n/a

Quoted professional fees

RM5,000 RM4,000 (RM5,000 for 1st

year)

RM7,500 RM10,000 (RM12,000 for 1st

year)

RM12,000 RM15,000

Remarks Intend to increase audit fees to

RM5,000 for 2015

First option, with the lowest quoted fees

Second option Significantly higher quoted audit fees of more than double

Significantly higher quoted audit fees of

triple

Significantly higher quoted audit fees of

more than triple

* An English language magazine owned and published by RHA Media Sdn. Bhd., affiliated with Research House of Asia. # Will be affiliated with Moores Rowland Malaysia by end of 2015.

1 | A p p e n d i x E 1 – P r o p o s e d T r a i n i n g P r o g r a m s f o r F Y 2 0 1 6

Appendix E1

PROPOSED TRAINING PROGRAMS

FOR FINANCIAL YEAR 2016

JANUARY – DECEMBER 2016

I. MACROECONOMIC AND MONETARY POLICY MANAGEMENT (MMPM)

MP1B SEACEN Intermediate Course on Econometric Modeling and Forecasting

Proposed Dates: 17-22 April (TBC)

Proposed Venue: Indonesia

Proposed Host: Bank Indonesia

This course focuses on modeling and estimation techniques increasingly utilized in central

banks such as state-space modeling and use of the Kalman filter, extensions of conventional

VAR analysis to SVAR, BVAR, GVAR, and FAVAR models, and modeling of networks in

banking, finance, and macroeconomics. The course includes significant hands-on work.

Objectives: At the end of the Course participants will be able to: (i) specify and estimate state-

space models, (ii) estimate and interpret different types of VAR models, and (iii) apply network

analysis to analyze interlinkages between financial institutions, financial markets, and

economies.

Target Group: This Course is intended for central bank officials whose duty involves

significant quantitative analysis and research. Participants are expected to have excellent

quantitative skills and extensive experience using computer programs such as E-Views


MP2A SEACEN Course on Monetary Policy Strategies and Monetary Operations

Proposed Date: 29 May – 3 June (TBC)

Proposed Venue: Philippines

Proposed Host: Bangko Sentral ng Pilipinas

The implementation of monetary policy requires the ability to respond appropriately to

developments in foreign exchange markets, the domestic money market, the timing of

government receipts and payments, etc.. This course will discuss how monetary policy

strategies and operations need to be structured and implemented in order to achieve the

desired objectives.

Objectives: The Course aims to equip participants with tools necessary to give advice on the

implementation of monetary policy in different circumstances. In particular participants will

learn to (i) assess the need for interventions in the foreign exchange market in response to

currency volatility, currency misalignments, and capital flows, (ii) determine the need for and

consequences of sterilization policies, (iii) conduct liquidity forecasting, (iv) and assess

alternative methods for policy interest rate management.

Target Group: Central bank staff who are responsible for advising on or carrying out

monetary policy operations. Delegates should have at least two years’ experience in this

function.


MP2B SEACEN Course on Monetary Policy Transmission Mechanisms: Theory and

Empirical Assessment

Proposed Dates: 4-9 September (TBC)

Proposed Venue: Korea

Proposed Host: Bank of Korea

Globalization of international finance and the increased integration of emerging markets in the

international financial system has major implications for the conduct of monetary policy. The

monetary transmission mechanism depends more than previously on global factors that

influence domestic credit, exchange rates and long-term interest rates. Monetary as well as

financial stability considerations now involve an assessment of the behavior of global banks

that extend credit internationally and international investors that purchase debt securities

issued by firms in emerging markets. There is a lively debate whether EME central banks have

diminished control over domestic monetary and financial conditions.

This course will cover these developments and bring the participant to the forefront of the

theoretical and policy debates.

Objectives: At the end of the Course, participants will be able to: (i) Analyze different facets

of financial globalization, monetary and financial spillovers, and their consequences for

monetary and financial policy; (ii) Analyze the implications for financial intermediation; (iii)

Recognize the changes that have taken place in the implementation of monetary policy and

liquidity management;(iv) Use empirical tools to evaluate the effects for the monetary policy

transmission mechanism; and (v) Quantify the changes in interest rate pass-through as a

result of these developments.

Target Participants: Experienced senior economists or technical staff from central banks or

monetary authorities who are actively involved in research on monetary policy transmission

mechanisms. They are also expected to have excellent quantitative skills and extensive

experience using computer programs such as E-Views.


MP3A SEACEN-IMF Course on Macroeconomic Diagnostics

Proposed Date: 16-28 October (TBC)

Proposed Venue: Cambodia

Proposed Host: National Bank of Cambodia

Ability to assess a country’s macroeconomic situation is a critical first step to the formulation

of macroeconomic policy. As the economy becomes more complex with increasing

interconnectivity among macroeconomic sectors within and across economic boundaries,

there is a pressing need to equip economic analysts and technical staff of central banks with

the appropriate diagnostic and analytic tools that are not usually covered in the

macroeconomic textbooks or in university courses.

Objectives: The Course aims to enable participants to assess a country’s macroeconomic

situation using appropriate tools. In particular, at the end of the Course, participants will be

able to: (i) explain the current state of the macro-economy of a country; (ii) assess medium-

term flows of funds, balance-sheet position, and sustainability of key macroeconomic sectors;

and (iii) measure the macroeconomic effects of monetary and fiscal policy.

Target Group: Middle-level officials from central banks or monetary authorities who are

closely involved with assessing overall macroeconomic developments and prospects as well

as with policy analysis and strategy. Participants are expected to have a university degree in

economics or equivalent experience, good quantitative skills, and proficiency in the use of

spreadsheets.


MP3B SEACEN Course on Analytics of Macroeconomic and Monetary Policy

Management

Proposed Dates: 21 February – 4 March (TBC)

Proposed Venue: Sri Lanka

Proposed Host: Central Bank of Sri Lanka

This intermediate course will emphasize technical and analytical aspects of macroeconomic

and monetary policy management, using lectures together with hands-on exercises and case

studies. In 2016 the course will focus on topics such as monetary policy transmission

mechanisms, assessing the stance of monetary policy, early warning indicators of financial

instability, and implementing macroprudential policies.

Objectives: At the end of the Course, participants will be able to: (i) assess the stance of

monetary policy in relation to the macroeconomic conditions facing an economy, (ii)

understand the channels through which monetary policy affects the economy, (iii) assess the

usefulness of early warning indicators, and (iv) appreciate the issues associated with the

implementation of macroprudential policies.

Target Group: Middle-level officers or technical staff from central banks or monetary

authorities, whose work involves macroeconomic surveillance and analysis of monetary

policy. Participants should have at least 2 years relevant working experience and be familiar

with basic econometrics and the use of econometric software such as E-views.


MP3C SEACEN Course on External Sector Issues

Proposed Dates: 18 – 30 October (TBC)

Proposed Venue: Malaysia

Proposed Host: SEACEN

The high degree of openness of most SEACEN economies has complicated central banks’

tasks in macroeconomic and monetary policy management, especially in handling external

shocks. The Course will address issues of current concern including management of

international capital flows, exchange rate measurement and assessment, and global supply

chains and their implication for interconnectedness and measurement of competitiveness.

Objectives: At the end of the Course, participants will be able to: (i) assess the impact of

international capital flows and policy reactions to such flows, (ii) construct and interpret

alternative exchange-rate indices; (iii) understand the implication of global supply chains for

macroeconomic interdependence and assessment.

Target Group: Middle-level officers/technical staff of central banks with at least 2 years

working experience in balance of payments analysis and surveillance, exchange rate policy,

macroeconomic and monetary policy analysis, and surveillance.


MP4B Financial Cycles and Crises (Joint with FSS)

Proposed Dates: 27 November – 3 December (TBC)

Proposed Venue: India (TBC)

Proposed Host: Reserve Bank of India (TBC)

Globalization of finance and increased international linkages between national money- and

capital markets has focused attention on the potential role of international financial cycles as

a cause of fluctuations in national asset prices and in heightened risks of financial instability.

This course will review the evidence on the patterns of financial cycles, discuss their causes

and consequences, and examine possible policy responses.

Objectives: At the end of the Course, participants will be able to: (i) describe the

characteristics and possible causes of financial cycles in an economy and their relationship

with global cycles; (ii) evaluate the usefulness of early warning indicators of financial stress,

and (iii) assess the appropriateness of alternative policy responses to the evolution of financial

cycles.

Target Group: Central bank middle/high level officers either from monetary policy or financial

stability departments and who are involved with analyzing the use of monetary policy and

macroprudential policy to promote macroeconomic and financial stability.


II. FINANCIAL STABILITY AND BANK SUPERVISION (FSS)

FS1A: SEACEN Foundation Course for Bank Examiners

Proposed Dates: 21 February – 4 March (Option for qualified participants to only attend the second week of the Course) Proposed Venue: Nepal Proposed Host: Nepal Rastra Bank

Effective bank supervision is an important part of jurisdictions’ efforts to maintain financial

stability. A sound and stable banking system is critical to meeting economies’ credit needs

and facilitating commerce in order to achieve longer-term growth and development.

This program covers foundational skills for bank examiners in emerging markets. The course

modules provide practical knowledge on gathering and assessing information on various basic

aspects of banks’ business and condition, which will serve as input into overall examination

findings. The curriculum encompasses both technical and behavioral skills development.

The two week program is structured so that participants who are already proficient in the more

basic course modules to be covered during the first week will have the option of attending only

the second week.

Objectives: Using case studies and examples, participants will learn to apply fundamental

examination concepts and principles, be aware of related international standards and

recognized sound practices, and how to formulate appropriate recommendations for remedial

action when there are weaknesses or unsound practices or conditions in evidence.

Target Group: The Course is designed for entry level bank supervisors in emerging markets.

Course participants should have at least six months’ field bank examination experience so

they have reasonable familiarity and understanding of on-site examination processes.


FS1B: SEACEN Intermediate Course for Bank Examiners

Proposed Dates: 8 – 13 May Proposed Venue: Brunei Proposed Host: Authoriti Monetari Brunei Darussalam

Building on the SEACEN Foundation Course for Bank Examiners, this course focuses on

developing and enhancing bank examiners’ skills to a level of proficiency where they should

be able to independently serve as Examiner-In-Charge (EIC) of safety and soundness

examinations of non-complex, non-problem banks over the next eighteen months (depending

on the opportunity for job assignments that build skills proficiency through practical application

of formal training).

While arrangements vary among bank regulators, EICs typically determine the scope of

examinations, assign members of the examination team to examine various risk and

compliance areas, communicate examination findings to a bank’s executive management and

its board of directors, and have overall responsibility for the accuracy and integrity of

examination findings.

The program encompasses both technical and behavioral competencies. Technical content

focuses on advanced credit analysis, risk management practices and assessing the overall

stability of the bank and its future prospects. Behavioral skills development focuses on

enhancing examiners’ ability to effectively present and support examinations findings to banks’

boards of directors and executive management, and obtain commitments for remedial actions

in situations of routine difficulty.

Objectives: Provide exposure to more advanced bank examination techniques. Enhance

participants’ depth of knowledge, expertise and judgement to allow them to perform their

duties with a higher degree of autonomy. Participants should be developing a depth of

technical knowledge and expertise that enables them to instruct and mentor less experienced

examination team members.

Target Group: The Course is designed for supervisors in emerging markets with eighteen

months to two years’ field examination experience, including participation in assessing loan

portfolio quality. Most participants will have assisted an EIC as a team leader, an important

support role which entails the review of various risk areas during an examination, the results

of which will be incorporated into overall examination findings. Course participants should

preferably have attended the Foundational Course or have demonstrated the knowledge and

ability to apply the learning content from that Course.


FS1C: SEACEN Advanced Course for Bank Examiners

Proposed Dates: 6 – 11 November Proposed Venue: Sasana Kijang, Kuala Lumpur Proposed Host: SEACEN

Building on the SEACEN Foundation and Intermediate Courses for Bank Examiners, this

course focuses on sharpening existing skills so that participants, who have already served as

Examiners-In-Charge (EIC) of safety and soundness examinations for non-complex, non-

problem banks, are prepared to serve as EIC for more complex or riskier institutions.

The course encompasses both technical and behavioral competencies. Technical content

focuses on more specialized credit analysis and conducting more granular assessments of

how bank’s measure, monitor and control risk. Some specialized topical issues are also

covered, such as cybersecurity risk and the prevention and detection of money laundering and

other financial crimes. Behavioral skills development focuses on enabling an examiner to

effectively present and support examinations findings to banks’ boards of directors and

executive management in more difficult or potentially contentious interactions -- for example,

where a bank may strongly disagree or challenge examiner’s findings.

The course curriculum covers eight days, with the last three days consisting of a bank

simulation exercise. The class is divided into groups who compete against each other in

“running” a bank using a realistic simulation model. Participants assume the role of bank

senior executive management, making realistic, strategic, tactical and operational decisions.

The course provides a unique perspective on the types of strategic choices and risk selection

decisions bankers make in a competitive operating environment.

Objectives: Provide exposure to more advanced bank examination principles and methods

to enhance the participants’ depth of knowledge, expertise and judgement, preparing them to

lead examinations of larger, more complex and potentially riskier banks.

Target Group: The Course is designed for supervisors in emerging markets with at least four

years’ practical experience in bank examination and supervision, who have served as an EIC

for non-complex bank examinations. Course participants should have completed the

Intermediate Bank Examiner Course or have demonstrated proficiency in that Course’s

curriculum modules. Senior bank supervision policy staff may also find the course content

and interactions to be relevant and beneficial to their work.


FS2A: SEACEN – Toronto Centre Course on Risk-Based Supervision

Proposed Dates: 5 – 10 June Proposed Venue: Sasana Kijang Proposed Host: SEACEN

Bank supervisors must focus their finite examination resources on banks and industry

practices that pose the greatest perceived risks. This is primarily a judgmental determination,

informed by relevant data and experience.

Off-site monitoring and analysis of bank-reported financial data is typically used to identify

“outlier” banks exhibiting anomalous results or “red flags” that need further explanation and

possible on-site review.

When prioritizing on-site examination schedules and the setting the scope of these reviews,

examiners seek to identify the risk areas that should receive the most attention. Setting the

examination scope is a judgmental pre-planning process that considers an array of data and

information, including non-public, confidential supervisory information on the bank’s business

plan, strategic and tactical decisions, risk appetite, the quality and track record of the bank’s

executive management team, and the quality of oversight provided by its board of directors.

Examiners should have the latitude to expand the scope of examination based on new

information or “red flags” to be able to fully understand the safety and soundness and conduct

of business risks posed by the institution.

Objectives: Through interactive case studies, group exercises and sharing of experiences,

participants, who are experienced examiners, will enhance their judgemental ability to focus

their examination activities on the most important risk areas, and de-emphasize activities or

areas that are deemed to be less risky and/or appear to be adequately controlled.

Target Group: The Course is designed for on-site bank supervisors and off-site monitoring

and surveillance staff from central banks/monetary authorities with at least three years’

experience in examinations and/or off-site surveillance of banks, allowing them to contribute

to the various interactive sessions, many of which require sharing of experiences.


FS3A: SEACEN-FSI Course on Liquidity and Funding Risk Management (including Market Risk Analysis and Interest Rate Risk Measurement, Analysis and Control)

Proposed Dates: 24 – 29 April (TBC) Proposed Host: Bangko Central ng Pilipinas

Liquidity risk is an inherent risk in the banking business due to banks’ role in maturity

transformation, and the various liquidity risks embedded in their asset portfolios and funding

strategies.

Financial institutions and supervisory authorities consider liquidity risk as part of their overall

risk management strategies. Liquidity events during the U.S./Eurozone Crisis disclosed that

banks’ need to improve their methods of measuring, monitoring, and controlling liquidity risk.

The reform measures embodied in the Basel III capital initiatives are in response to this

circumstance, by specifying liquidity maintenance standards and buffers to cover potential

periods of high stress.

While liquidity risk conceptually differs from interest rate and market risk, they are all

interrelated. The course will cover those relationships and implications.

Objectives: Participants will be exposed to practical techniques in assessing the strength of

the banks’ liquidity risk management processes, contingency planning, the appropriateness of

related public disclosures, and the interrelationships among liquidity, funding, interest rate and

market risks. They will also discuss considerations articulated in the Basel Committee’s

“Principles for Sound Liquidity Risk Management and Supervision.”

Target Group: Bank supervisors who will examine asset/liability management and the liquidity

risk of banks and prudential policy officers who are involved in developing guidance and

standards for liquidity risk, with at least two years’ practical experience. Staff from risk

management departments and investment operations in central banks may also benefit from

this course.


FS4A: SEACEN Course on Macroprudential Policy (Joint with MMPM)

Proposed Dates: 21 – 26 August Proposed Venue: Papua New Guinea Proposed Host: Bank of Papua New Guinea

Post-Crisis analyses of the U.S./Eurozone Crisis have cited various crisis causal factors. One

frequently cited factor is the historical focus of banking system stability monitoring on individual

institution risk. This approach alone may not detect the build-up of macroeconomic risks that

can adversely affect a number of financial institutions simultaneously, posing systemic risk.

The Basel Committee on Banking Supervision has emphasized that “The recent crisis

highlighted the interface between, and the complementary nature of, the macroprudential and

microprudential elements of effective supervision.”

The Crisis underscored the need for relevant national authorities, including central banks, to

develop surveillance systems that detect, at their incipient stages, the build-up of

macroeconomic risks, vulnerabilities or threats that can jeopardize financial system stability.

Timely macroprudential policy measures can then be considered, alone or in concert with

other policy actions, to avert, dampen or mitigate periods of instability or crisis.

The Asia Pacific region has avoided a significant cross-border financial crisis since 1997-98.

Developing, enhancing and implementing effective macroprudential policy measures are

important to promoting and maintaining ongoing financial system stability. Regional

authorities have been active users of macroprudential policy measures in recent years to

control financial stability risks.

Objectives: Responsibility for implementing various macroprudential measures may reside

in different national authorities, and not necessarily be a central bank mandate. Therefore,

macroprudential policy actions may necessitate close cooperation and coordination among

multiple domestic authorities to ensure effectiveness, and that they do not have contradictory

goals or offset each other. Formulation of macroprudential policy measures within central

banks may require increased interdepartmental collaboration.

Target Group: The Course is designed for central bankers, bank supervisors and staff from

other national authorities involved in formulating, coordinating and implementing

macroprudential policy actions. Course participants should have three to five years of work

experience that relates to the course content to allow them to meaningfully participate in the

various interactive sessions, many of which require sharing of experiences. A participant

group with diverse background experience in the course content is beneficial as it reflects the

need for cross-functional collaboration within and among national authorities in devising and

successfully implementing macroprudential policy measures.


FS5A: SEACEN-Toronto Centre Course on Crisis Management and Resolution

Proposed Dates: 27 March – April 1l Proposed Venue: Sasana Kijang Proposed Host: SEACEN

Financial crises occur infrequently but their direct and indirect costs are typically very high and

can have a significant negative impact on countries’ financial stability. Spillovers to the real

economy include constrained credit availability and severe curtailment of economic output.

Timely interventions and resolutions for non-viable banks are needed to preserve public

confidence in banks and minimize costs to bank creditors, deposit insurers and taxpayers.

The U.S./Eurozone Crisis of 2007-2009 and prior episodes of financial instability and crisis

clearly illustrate that central banks and other relevant national authorities need to be proactive

in preparing for orderly resolutions of nonviable financial institutions. Obtaining necessary

legal powers to take action, proper communication and coordination with relevant domestic

and foreign authorities, and an array of possible resolution strategies minimizes resolution

costs and helps promote timely action during periods of stress and crisis. Such preparations

are especially important in Asia Pacific where banking conglomerates require effective on-

going cross-border coordination and communication by relevant regulatory authorities.

Objectives: Using simulations, group exercises and interactive discussions, participants will

be able to explore a range of options in dealing effectively with time-sensitive

resolution/recovery scenarios. Related policy considerations will also be covered in-depth.

Target Group: The Course is designed for middle to senior level officials from central banks,

non-central bank regulators and deposit insurers, typically with at least 5 years of experience

in financial stability matters, financial surveillance or bank examination and supervision.


FS5B: SEACEN-FSI Course on Dealing with Problem and Near Problem Banks

Proposed Dates: 24 – 29 July (TBC) Proposed Venue: To be confirmed Proposed Host: Monetary Authority of Singapore

Financial stability and economic growth depend in part on a sound banking system in which

individual banks are willing and able to lend money to creditworthy borrowers for productive

purposes.

Individual banks may occasionally experience financial difficulties resulting from weak risk

management practices, poor strategic or tactical decisions, ineffective board of director’s

oversight, and a variety of other causal factors, sometimes exacerbated by changing economic

circumstances. In severe cases, unsafe and unsound banking practices can lead to an overall

unsafe and unsound bank condition, which could threaten a bank’s viability or solvency.

Problem bank situations can have adverse spillover effects, such as a significantly diminished

ability to meet the banking needs of the local community or adverse impacts on other banks.

Time is of the essence in dealing with problem banks. One of the most important roles of bank

supervisors is to detect developing bank problems at their earliest stages, so that timely

remedial action is taken by a bank’s boards of directors and executive management to restore

the institution to a sound condition.

Proactive and decisive intervention by bank supervisors to compel remedial actions is helps

to prevent problem situations from deteriorating. Remediation efforts are not always

successful. In such cases bank supervisors, in concert with other national authorities, may

need to find other solutions, such as merger with another bank or acquisition and

recapitalization by new investors. These actions may take place under extreme time

pressures.

Objectives: The Course will provide participants with practical insights in detecting and

diagnosing potential bank problems and in fashioning effective remedial action programs.

Highly interactive course discussions will include actual case studies by regulatory practioners

who have extensive experience in problem bank identification and rehabilitation. The form and

content of remedial action programs to be implemented by banks’ executive managements

and their boards of directors is covered in depth.

Target Group: Experienced bank examiners and supervisors or other regulatory or central

bank officials with at least four to five years’ experience who are involved in on-site supervision

or financial surveillance, or legal enforcement related to bank supervision. Though they may

not have direct personal experience in handling problem bank situations, participants will

typically have sufficient familiarity with bank supervisory processes so that they can actively

contribute to interactive course discussions.


FS6C: SEACEN Advanced Course on Stress Testing (Signature Programme)

Proposed Dates: 9 – 14 October (TBC) Proposed Venue: Hong Kong Proposed Host: Hong Kong Monetary Authority

Various post-crisis assessments of the causal factors of the U.S./Eurozone Crisis note that

more robust stress-testing methods can provide additional insights to banks and their

regulators in assessing future bank performance under a wide array of external economic

conditions. Some pre-crisis stress testing failed to include the crisis scenarios that actually

occurred because they were felt to be too extreme and improbable.

Positing a wide variety of stress scenarios, including severe but plausible events, can provide

valuable insights as to how banks’ risk profiles can change, and how they can improve risk

management and capital planning. This is beneficial to both banks and their regulators.

Stress testing is also used to identify potential systemic risk build-up.

Since the crisis, banks and their regulators have been building capacity and expertise in

stress-testing and related quantitative methods. Subject matter experts in central banks and

other relevant national authorities need to be able to work closely with bank examiners and

others involved in measuring various aspects of systemic risk to devise relevant tests and

interpret the results and risk implications correctly. They also frequently need in-house

capability to assess the adequacy of banks’ stress testing efforts and the quality of their

expertise.

Objective: This Course will provide participants an opportunity for in-depth discussion of

practical application of stress-testing standards for both individual banks and the financial

system. Course modules will include workshop sessions where the participants will discuss

realistic testing scenarios and results, and how they are used to identify, measure, manage

and control risk, including systemic risk.

Target Group: The Course targets bank supervisors and other central bank personnel who

may be involved in assessing or performing stress-testing activities, or interacting with

colleagues who do. Experience in the conceptual elements of stress testing and familiarity

with bank operations and bank capital planning processes are needed to derive the most

benefit from the various course modules. Officers involved in the developing related

regulations and policies may also benefit from attending the Course.


PAYMENT AND SETTLEMENT SYSTEMS (PSS)

PS1. 1st SEACEN Foundation Course on Payment and Settlement Systems

(5 days)

Proposed Date: (TBC)

Proposed Venue: Cambodia

Proposed Host: National Bank of Cambodia

Based on the learning need analyses, this year’s first fundamental Course will provide

coverage on the concepts and roles of central banks in the PSS, risk management; principles

of Financial Market Infrastructures (FMIs), efficiency of core payment and settlement systems

for both retail payment systems and large value payment systems. The Course will also focus

on issues of current concern, including role of non-bank players and retail payment system

policy issues.

Objectives: At the end of the Course, participants will be able to: (i) explain the fundamental

concepts and roles of payment systems in financial stability and monetary policy; (ii) identify

major risks in core payment and settlement systems using country examples; (iii) assess

liquidity management options in the RTGS to enhance efficiency; and (iv) explain risk

management measures, including central bank’s oversight and business continuity planning,

based on international norms and best practices.

Target Group: Junior officers or technical staff, with at 1 – 2 years working experience on

payment and settlement operations, policy, oversight, risk profiling and management, or IT

supervision. Participants should have some basic knowledge of payment and settlement

concepts and operations.


PS2. 11th Intermediate Course on Payment and Settlement Systems

(5 days)

Proposed Date: October/November 2016 (TBC)

Proposed Venue: Taipei

Proposed Host: Central Bank, Chinese Taipei

This Course provides comprehensive knowledge in terms of risk, risk management and

efficiency of core payment and settlement systems (retail payment systems and large value

payment system). Based on the learning need analyses, this year’s Course will offer a more

in-depth coverage on liquidity management in the real time gross settlement system (RTGS),

and some case studies on foreign exchange settlement risks and risk management will be

used. The focus of the retail payment systems module will be on issues of current concerns,

including role of non-bank players and retail payment system policy issues.

Objectives: At the end of the Course, participants will be able to: (i) explain the role of payment

systems in financial stability and monetary policy; (ii) identify major risks in core payment and

settlement systems using country examples; (iii) assess liquidity management options in the

RTGS to enhance efficiency; and (iv) explain risk management measures, including central

bank’s oversight and business continuity planning, based on international norms and best

practices.

Target Group: Mid-level officers or technical staff, with at least 2 years working experience

on payment and settlement operations, policy, oversight, risk profiling and management, or IT

supervision. Participants should have basic knowledge of payment and settlement concepts

and operations.


PS3. SEACEN Advanced Course on Payment and Settlement Systems (Signature

Program)

(5 days)


Proposed Venue: Sasana Kijang, Kuala Lumpur


Building on knowledge gained from the SEACEN Intermediate Course on Payment and

Settlement Systems, this Advanced Course focuses on policy and topical issues of interest in

the payment and settlement systems (PSS) of emerging market economies. For FY 2016, the

emphasis will be on observance of the principles set forth by international standard setting

body to enhance PSS safety and efficiency. The Course will focus on the CPSS Systemically

Important Payment Systems (SIPS) Core Principles (CP), which remain at the core of the

PFMI.

As safe and efficient PSS contributes to maintaining and promoting financial stability and

economic growth this course will also include areas such as legal framework, risk

management, technology, role of central banks and the linkages of safe and efficient PSS to

monetary policy and financial stability in three main areas of Payment and Settlement

Systems, namely Large Value Payment Systems (LVPS), Securities Settlements Systems and

Retail Payment Systems (RPS).

Objectives: The Course aims to enable participants to apply assessment methodology for

observance of the CPSS Systemically Important Payment Systems (SIPS) Core Principles

(CPs). Specifically, participants will be able to: (i) describe key considerations for each of the

SIPS CPs and roles of central banks; (ii) based on country experiences, identify best practices

in complying with the SIPS CPs; (iii) apply assessment methodology to assess observance of

national payment systems with SIPS CPs; and (iv) compare the differences between SIPS

CPs and Principles for Financial Market Infrastructure (PFMI).

Target Group: Central bank officials whose principal role is the oversight of systemically

important payment systems, with at least 5 years relevant working experience. Officials who

are involved in developing payment policy and oversight may also apply. Participants are

expected to be familiar with the risk profile and risk management of the RTGS.


IV. LEADERSHIP AND GOVERNANCE (LDG)

LDG 1: 10th SEACEN Intermediate Leadership Course

Proposed Date: June (TBC)

Proposed Venue: Mongolia

Proposed Host: Bank of Mongolia

Central banks are facing new challenges to cope with greater uncertainty, complexity and

interdependency in all aspects of their operations, both externally and internally. In view of

this, it is pertinent that central bankers possess strategic leadership skills in their thinking and

actions when they strive for excellent performance. In that line, The SEACEN Centre has

designed an interactive leadership program that provides a broad coverage of the essential

knowledge, skills and techniques for success as a leader based on SEACEN Competency

Model. This Model was derived based on inputs from SEACEN member central banks and it

enlist competencies required by a leader based on the roles that he/she needs to play in the

capacity as a leader. Every year, a theme will be identified for the SEACEN leadership

programme where the content of the programme will be focusing more on that particular

theme. The delivery methods include self-assessments, role-plays, group discussions, games,

feedback sharing, videotaping, action planning and lectures.

Objectives: This Intermediate Programme is designed to help leaders of central banks

expand their capacity and leadership effectiveness through recognizing elements of

leadership effectiveness, identifying and assessing key roles of leaders, and improving critical

leadership skills. In the context of central banking environment, this will be achieved through:

(i) self-discovery of strengths and development needs; (ii) enhancing agility to learn; (iii)

practicing key leadership skills (managing and leading change, problem solving, decision

making, influencing and persuasion, and creating developmental climate in the context of

central banking); (iv) identification of developmental needs and commitment to action plans;

and (v) taking charge of ongoing developmental processes to close gaps in key competency

areas.

Target Group: The Course is designed for middle level managers from central

banks/monetary authorities who play leadership role at departmental level, with significant

managerial responsibilities (leading teams and resources) and with the potential to play

strategic roles in the running of their organization.


LDG 2: 10th SEACEN Advanced Leadership Course (Signature Program)


Proposed Venue: Thailand

Proposed Host: Bank of Thailand

Financial institutions are facing challenges to cope with greater uncertainty, complexity and

interdependency in all aspects of their operations, both externally and internally. Central

banks, as organizations entrusted to play a critical role in ensuring financial and price stability

as well as growth of their economies, need to possess the authority to carry out their mandates

– the agility to weather uncertainty, and the resilience to create sustainable results and impact.

These requirements can be fulfilled through effective leadership at all levels in central banks

where individuals and teams are expected to possess strategic leadership in their thinking and

actions when they strive for excellent performance. Translating the needs of leadership into

an integrated set of knowledge, skills and attitude, The SEACEN Centre has designed an

interactive leadership program that provides a broad coverage of the essential knowledge,

skills and techniques for success as a leader based on SEACEN Competency Model. This

Model was derived based on inputs from SEACEN member central banks and it enlist

competencies required by a leader based on the roles that he/she needs to play in the capacity

as a leader, in the context of central banking.

Every year, a theme will be identified for the SEACEN leadership programme where the

content of the programme will be focusing more on that particular theme. This one-week

intensive learning programme will be conducted based on a theme identified every year where

the content of the programme will be focusing more on that particular theme which will be

presented by a mix of delivery methods that include self-assessments, case studies, role-

plays, group discussions, video-taping, games, feedback, action planning and lectures.

Objectives: This Programme is uniquely designed to help leaders of central banks expand

their leadership capacity and effectiveness, specifically through setting direction, creating

alignment to organizational goals and motivating a high sense of commitment from the people.

In the context of central banking, this will be achieved through: (i) discovering individual

leadership challenges and behavioral impact; (ii) enhancing learning agility; (iii) gaining

insights on the application of leadership competencies in central bank functions; (iv) practicing

key leadership skills (making decisions and judgment calls, managing and leading change,

influencing and persuasion, receiving and giving developmental feedback); (v) identifying

individual leadership developmental needs; (vi) crafting an implementable plan for individual

leadership development; (vii) identify critical governance principles crucial to the fulfilment of

central banks’ mandate.

Target Group: The Course is designed for head of departments, members of the policy-

making committees and senior staff with potential to be heads of departments in the near

future. SEACEN Intermediate Leadership alumni may apply for the programme after three

years gap from the last leadership programme.


LDG3: SEACEN Seminar on Central Bank Governance (Signature Program)


Proposed Venue: Manila, Philippines


The recent financial crisis has raised important questions concerning central banks' role in the

prevention, management and resolution of financial crises. As the crisis unfolded, a number

of central banks were confronted with unusually challenging circumstances, which required a

sharp expansion in the use of traditional intervention tools and the introduction of entirely new

ones. These events had led to a reconsideration of the mandates and roles of central banks

in discharging effective and sustainable conduct of their core functions. In particular, there is

a need for clear governance in their conducts of monetary policy functions in combination with

the additional mandate in safeguarding the stability of financial system. Underlying these

sophisticated phenomena is the set-up of governance structures and practices of central

banks in ensuring expertise and professionalism in policy decisions, and credibility in

executing its action in times of economic uncertainty. In view of this, there is a pertinent need

for central banks to have a clear understanding on the governance setup and arrangement

that are most suitable for their own circumstances. Central banks needs effective governance

that requires clear and well-specified objectives; appropriate powers and resources; and close

alignment of objectives and incentives.

Objectives: The Seminar is designed to help decision-makers evaluate the governance set

up and arrangements of their central banks in achieving the objectives of central banks’ core

functions effectively. Through interactive discussions and case studies, participants will learn

to: (i) describe the roles and objectives of modern central banks; (ii) discuss the impact of

changing mandates on central bank governance; (iii) discuss the design of decision-making

arrangements in central banks; (iv) evaluate the legal frameworks used to empower the central

bank in discharging their duties; (v) evaluate various ways of constructing working

relationships between the central bank, the government, legislature and other regulatory

authorities; and (vi) evaluate the effectiveness of the current setup of their respective central

banks

Target Group: The Seminar is designed for senior level officials from central banks involved

in managing the governance of their organization, and those involved in policy decisions of

the core functions of central banks.

Appendix E2 – Proposed Research Projects for FY2016

Appendix E2

Proposed Research Projects for FY2016

Managing and supervising systemically important financial institutions (SIFIs) in

SEACEN Economies

SIFI is simply a financial firm that has the potential to generate systemic risk. According to

the IMF definition, systemic risk is “a risk of disruption to financial services that is: (i) caused

by an impairment of all or parts of the financial system and (ii) has the potential to have serious

negative consequences for the real economy”. This research, is intended particularly for the

SEACEN members to conduct a comparative study of Regional-SIFIs to reduce the likelihood

of SIFI distress and failure and should such failure occurs, to lessen the wider social costs.

The framework for managing and supervising SIFIs includes designing core financial market

infrastructure, prudential and other supplementary requirements for greater intensive

supervisory oversight and a robust resolution agenda.

Global Liquidity and the Impact of Capital Flows and Exchange Rate in SEACEN

Economies

The aftermath of the Global Financial Crisis saw implementation of large scale unconventional

monetary policy in the advanced countries. Meanwhile, speaking in the IMF annual meeting

in October 2014, Christine Lagarde, the IMF’s managing director, said there was “clearly a

major slowdown in countries like Brazil and Russia”, pointing out that the end of quantitative

easing would send shockwaves to emerging economies. She cautioned the emerging

economies to prepare for more volatility than what was observed over the last few months.

Elsewhere, the Bank of Japan and European Central Bank initiated new stimulus measures

at around the same period. This research, a follow up of a High-level Seminar conducted in

2014 will explore from a central from the bank’s perspective, what is the policy mix to minimize

the volatility of capital flows and exchange rates in the SEACEN economies in the light of

changing global liquidity.

http://www.ft.com/intl/cms/s/0/d65a57e0-4ecb-11e4-b205-00144feab7de.html

http://www.ft.com/intl/cms/s/0/d65a57e0-4ecb-11e4-b205-00144feab7de.html

http://topics.bloomberg.com/european-central-bank/?cmpid=yhoo.hlinks

1 | A p p e n d i x E 3 – P r o p o s e d H i g h - L e v e l S e m i n a r s ( b a c k - t o -b a c k w i t h P o l i c y M e e t i n g s ) f o r F Y 2 0 1 6

Appendix E3

PROPOSED HIGH-LEVEL SEMINARS (BACK-TO-BACK WITH POLICY MEETINGS)

FOR FINANCIAL YEAR 2016

M1. 17th SEACEN Conference of Directors of Supervision of Asia-Pacific

Economies (back-to-back with 29th Meeting of SEACEN Directors of Supervision)

Proposed Dates: (TBC)

Proposed Venue: (TBC)

Proposed Host: (TBC)

The Meeting of SEACEN Directors of Supervision will be a closed-door session during

which the heads of supervision departments of the SEACEN member central

banks/monetary authorities will discuss SEACEN strategic issues, review the on-going

learning activities on banking supervision, and discuss the learning needs for financial

stability and banking supervision in the forthcoming operating year.

In conjunction with the Meeting, the SEACEN Conference of Directors of Supervision of the

Asia-Pacific Economies will be held to provide a forum for senior bank supervisors to

discuss challenges and issues of common concern that relates to international standards,

best practices, policy guidance and approaches toward strengthening banking supervision

in emerging countries. The themes for the meeting and conference will be determined in

consultation with the Directors of Supervision of the SEACEN member central

banks/monetary authorities. Renowned resource speakers will be invited from international

standard setters such as the FSI, advanced and regional central banks, academicians, etc.

M2. DOPSS Conference (back-to-back with 15th Meeting of Directors of Payment and

Settlement Systems of Asia-Pacific Central Banks)


Proposed Venue: Sasana Kijang


This annual meeting provides a forum for Directors of Payment and Settlement Systems

(PSS) to discuss SEACEN strategic issues, review the current year’s learning program on

PSS and discuss the learning needs for PSS in the forthcoming year. The Meeting will be

held back-to-back with the Conference for Directors of PSS in the Asia-Pacific central

banks. The Conference theme will be identified in consultation with the Directors of PSS.

Resource speakers for the Conference will be invited from the CPSS, World Bank or

experts in the field from the region.


M3. Directors of Research and Directors of Training Seminars (back-to-back with

38th SEACEN Directors of Research and Training Meeting)

Proposed Dates: End Aug (TBC)

Proposed Venue: Papua New Guinea

Proposed Host: Bank of Papua New Guinea

This Annual Meeting is held to discuss SEACEN strategic issues, review the progress of

the training courses and research activities and to discuss proposed program of activities

for FY 2017. The Meeting will be preceded by seminars for Directors of Research and

Directors of Training/HR to discuss challenges and issues of common concern that relates

to monetary policy analysis, formulation, operations and implementation for Directors of

Research, and HR and training issues such as leadership development, development and

retention of talents in central banks, and assessing impact of learning to business needs.

Topics for the seminars will be identified in consultation with the Directors of Research and

Training. Depending on the topics of the seminars, resource speakers for the seminars will

be invited from international or regional financial institutions, advanced or regional central

banks, or renowned private consultants.

M4. High-Level Seminar on Financial Stability (back-to-back with 7th Meeting of

Deputy Governors in charge of Financial Stability and Banking Supervision)

(3 days)


Proposed Venue: (TBC)

Proposed Host: (TBC)

In line with the Board of Governors’ decision at the 30th BOG Meeting, the Meeting of

Deputy Governors in charge of financial stability and banking supervision will be convened

annually to exchange views and experiences on issues relating to financial stability and

developments that are well focused and relevant to the region. The Meeting will be

preceded by a Seminar on topic to be identified in consultation with the Deputy Governors

in charge of Financial Stability and Banking Supervision.


M5. SEACEN-BIS high-level seminar (back-to-back with 15th SEACEN Executive

Committee Meeting)


Proposed Venue: Philippines


This annual Meeting will be held to: (i) review the progress of activities and budget

for the current financial year; (ii) recommend the proposed initiatives, program of activities,

budget and other operational matters of The SEACEN Centre for the forthcoming operating

year; and (iii) discuss matters and policies of strategic importance to The SEACEN Centre

to be recommended to the SEACEN Board of Governors. The Meeting will be preceded by

a seminar on topic to be identified in consultation with the EXCO.

M6. 52nd SEACEN Governors’ Conference/High-Level Seminar and 35th SEACEN

BOG Meeting

Proposed Venue: }

Proposed Dates: } (to be decided at the 35th Meeting of the SEACEN BOG)

Proposed Host: }

The SEACEN Governors’ Conference provides a forum for the governors of the SEACEN

member and observer members to exchange views and share experiences on economic

and financial issues of common interest and concern, and to be updated on the world

economic outlook and emerging international financial issues. The theme of the

Conference will be identified by the Host Bank in consultation with the SEACEN Governors.

The SEACEN BOG Meeting, which will be held in conjunction with the SEACEN Governors’

Conference, will decide on policies of strategic importance to The SEACEN Centre,

approve SEACEN program of activities, budget, and other administrative matters as

recommended by the EXCO; as well as discuss the SEACEN Trust Fund.

Appendix F – Proposed Revision to the Terms of Reference of the SEAG

Appendix F

Terms of Reference of the SEAG

Current

Proposed Changes

Participants: 5 Senior Directors from Member Banks

1 SEACEN representative

Senior Directors from Member Banks, at

least five and at most six

Formal

Meeting:

Yearly, back-to-back with Directors of

Supervision (DOS), Directors of Payment

System and Settlements (DPSS) and Directors

of Research and Training (DORT) Meetings

No yearly formal meetings

Period of

Service:

Two years except for SEACEN

representative

Two members are rotated each year

Two years, renewable

Responsibilit

ies of

SEAG:

a) Advise SEACEN on priorities of SEACEN

learning and research programmes

b) Provide input on design process and

technical assistance (e.g. SEACEN

design and development manager will

consult with SEAG on the design to check

on the curriculum for consistency and

relevancy)

c) Advise on collaborative efforts and to

provide recommendations

d) Review results achieved in learning

programmes and research projects and

advise on requirements

e) Relationship with DORT: After

consultation with SEAG, SEACEN will

propose learning and research

programmes for the new operating year to

DORT for their advice, comments and

evaluation, before presenting proposed

programmes to EXCO for final approval.

Relationship with SEACEN: SEACEN will

make all arrangements for meetings and

conference calls. Agendas and minutes

will be prepared by SEACEN. As existing

practice, SEACEN will table the annual

learning and research programmes to

DORT for review.

Be available to provide input on the

design of learning and research

programmes and on the appropriate

subject matter experts to invite as

resource persons.

Appendix F – Proposed Revision to the Terms of Reference of the SEAG

Current

Proposed Changes

Required

Qualification

s and

Experience:

Senior Directors/Heads of Department

Deep knowledge and experience in

subject matter, current and future

challenges in central banking business

Senior Directors/Heads of Department

Deep knowledge and experience in

subject matters and current and future

challenges in central banking

Nomination

Procedure

(new)

- Self-nomination or by co-optation if no self-

nominations are forthcoming

Appendix F1 – Professional Credentialing of Central Bank Experts

Appendix F1

Background Note on Possible Development of SEACEN Professional Skills

Credentialing Programs for Central Bank Subject Matter Experts

Purpose

1. To seek the EXCO’s advice on the possibility for SEACEN to conduct an exploratory

study in 2016 as to the merits of pursuing development of professional credentialing

programs for various subject matter experts from SEACEN member central banks.

Background

2. Many providers of professional services to the financial services industry are required to

obtain and maintain formal credentials or certifications evidencing their professional

competency. Examples include Certified Public Accountants, Chartered Accountants,

Chartered Financial Analysts, and Certified Real Estate Appraisers, who are generally

required to demonstrate professional proficiency through successful completion of

various courses of study or other accreditation protocols.

3. Similarly, many bank regulatory authorities, including some SEACEN member central

banks, have developed comprehensive in-house bank examiner training programs,

specifying required training courses and other criteria for continuing professional

development and career progression.

4. Bank examiners routinely make professional judgments about the safety and soundness

of individual banks that require broad competencies, including: general banking

principles, bank operations, financial analysis, accounting and auditing principles,

commercial and transactions law, credit and counterparty risk, applied management

principles, corporate governance, risk management, and banking laws and regulations.

5. A feature of many bank examiner education and development programs is to train entry-

level bank examiners over the course of three to five years to be able to serve as an

“Examiner-in-Charge” (EIC).

Appendix F1 – Professional Credentialing of Central Bank Experts

6. EICs lead bank examinations, supervisory reviews and inspections, directing the work

of other examiners and junior members of the examination team. EICs sign and submit

draft reports of examination, and are responsible for the accuracy of examination

findings.

7. Bank examiner accreditation or credentialing processes frequently confer a professional

designation, such as “Commissioned Bank Examiner” (CBE), evidencing that the holder

meets high standards of professional competency.

8. In some jurisdictions, holding a credential or designation such as CBE is required to

serve as an EIC.

9. At several successive annual SEACEN Directors of Supervision (DOS) meetings, there

have been various recommendations that SEACEN should pursue development of an

accreditation process for bank examiners. This would assist member central banks that

do not have an in-house process. This suggestion was again raised at the most recent

DOS meeting held on 7 August 2015.

10. Credentialing protocols could also be developed for other central bank professional

career paths, such as those involving monetary policy and payment systems oversight.

Requested Action

11. Based on the example of bank examiner credentialing, and the DOS’ recommendations,

we seek the EXCO’s endorsement on conducting an exploratory study on the merits of

pursuing the development of professional credentialing programs for various

professional staff in SEACEN member central banks.

12. It is not envisaged that the study will have a material impact on SEACEN’s financial

budget as the study will be conducted by SEACEN internal faculty. The results of the

exploratory study would provide valuable input into the decision as to whether to actually

proceed to develop a credentialing program.

^ Approved Proposed

Budget Budget

FY 2015@ FY 2016@

RM RM RM Remarks

I TRAINING * 4,452,900 4,062,500 (390,400) (8.77)

54.0% 52.9%

II RESEARCH 1,375,600 1,355,550 (20,050) (1.46)

16.7% 17.7%

III MEETINGS 986,000 738,400 (247,600) (25.11)

12.0% 9.6%

IV INSTITUTIONAL # 1,435,900 1,522,300 86,400 6.02

17.4% 19.8%

TOTAL 8,250,400 7,678,750 (571,650) (6.93)

BANK OF JAPAN TRAINING GRANT 303,000 360,000 57,000 18.81 RM1 = JPY27.79; 1JPY = RM0.036 (FY2016)

(TRAINING TOTAL) 7,171,000 4,422,500 (2,748,500) (38.33) RM1 = JPY33.00; 1JPY = RM0.030 (FY2015)

GRAND TOTAL 8,553,400 8,038,750 (514,650) (6.02)

^ Presentation of approved budget for FY2015 is aligned with that of proposed budget 2016 for comparison purposes.

# Staff salary-related expenditure for 2016 has been excluded. Will be presented separately at the EXCO Meeting

- Engagement of resource speakers for training

programs constitutes 71.6% of Training Courses;

- 2016 SEACEN Policy Summit and SEACEN

Conference in honour of Dr. Puey Ungphakorn;

- Subscription fee for simulation game.

- Conduct 2 Just-in-Time high-level seminars;

- Engagement of 2 SMEs under the Visiting

Scholar Program;

- Conduct 4 webinars with SME on topics of

current or emerging interest.

Classification %

- Purchase of replacement photocopier;

- Purchase of a replacement server and a server

for back-up of data;

- Renewal of SEACEN Portal subscription.

* Excludes Bank of Japan Training Grant of ¥10 million (approx. RM303,000).

Appendix G

THE SEACEN CENTRE

PROPOSED BUDGET FOR FINANCIAL YEAR ENDING 31 DECEMBER 2016

(1 January to 31 December 2016)


Variance

Page 1

Approved Proposed

Budget Budget

FY 2015 FY 2016

RM RM RM Remarks

I TRAINING

A DESIGN AND DEVELOPMENT OF LEARNING CONTENT 106,700 77,700 -29,000 (27.18)

i) Case Studies 66,000 77,700 11,700 17.731 CS1: Monetary Policy Tranmission in the SEACEN Economies 6,600 0 -6,600 (100.00)

2 CS2: Living with Volatilities:Capital Flows and their Implications for

Central Bank Policies in SEG Economies

6,600 0 -6,600 (100.00)

3 4 Case studies 52,800 77,700 24,900 47.16 Up to case studies at US$5000 each

ii) Curriculum Design 40,700 0 -40,700 (100.00)1 Expenditure for content experts 40,700 0 -40,700 (100.00)

B. TRAINING COURSES 4,649,200 4,344,800 -304,400 (6.55)

i) Macroeconomic & Monetary Policy Management

(MMPM)

1,028,000 1,246,600 218,600 21.26

1 MP1 - SIGNATURE PROGRAM:SEACEN Intermediate Course on

Modelling and ForecastingTehnique - Indonesia

0 108,800 108,800 n.a.

2 MP2: SEACEN Intermediate Course on The Analytics Macroeconomic

and Monetary Policy Management - Sri Lanka

0 206,200 206,200 n.a.

3 MP3: SEACEN Course on Monetary Policy Transmission - Korea 0 165,100 165,100 n.a.

4 MP4: SEACEN Course on External Sector Analysis - SEACEN 0 109,400 109,400 n.a.

5 MP5: SEACEN Foundation Course on Macroeconomic Diagnostic -

Cambodia

0 81,600 81,600 n.a.

6 MP6 : SEACEN Course on Financial Cycles and Crises (Joint with

FSS) - SEACEN

0 120,200 120,200 n.a.

7 MP7 : SEACEN Course Monetary Policy Strategies and Operations -

Philippines

0 95,300 95,300 n.a.

8 MP8: SEACEN Conference in memory of Dr. Puey Ungphakorn -

SEACEN

0 360,000 360,000 n.a.

9 MMPM programs in FY2015 1,028,000 0 -1,028,000 (100.00)

71.6% of Training Course budget is allocated to the

engagement of resource speakers, while 12.5% for

SEACEN official travel; 6.2% for meeting package; and

1.9% for administrative expenses.

PROPOSED BUDGET FOR FINANCIAL YEAR ENDING 31 DECEMBER 2016 (cont'd)

Variance

Classification %

Page 2

Approved Proposed

Budget Budget

FY 2015 FY 2016

RM RM RM Remarks

ii) Financial Stability and Bank Supervision (FSS) 1,668,500 1,656,400 -12,100 (0.73)1 FS1 : SEACEN Foundation Course on Bank Examiners Foundational

Skills Development - Nepal

0 181,000 181,000 n.a.

2 FS2 : SEACEN Intermediate Course on Bank Examiners - Brunei

Darussalam

0 70,200 70,200 n.a.

3 FS3: SEACEN Advanced Course on Bank Examiners - SEACEN 0 173,100 173,100 n.a. Inclusive of subscription fees for Bank Management

School simulation game

4 FS4: SEACEN Advanced Course on Macroprudential Policy - Papua

New Guinea (Joint with MMPM)

0 236,200 236,200 n.a.

5 FS5: SEACEN-FSI Course on Liquidity Risk and Funding Risk

Management (including Market Risk Analysis and Interest Rate Risk

Measurement, Analysis and Control -Philippines

0 120,300 120,300 n.a.

6 FS6 SIGNATURE PROGRAM: SEACEN Advanced Course on Stress

Testing - Hong Kong

0 80,200 80,200 n.a.

7 FS7 : SEACEN Course on Risk-Based Supervision - SEACEN 0 132,200 132,200 n.a.

8 FS8: SEACEN Course on Crisis Management and Resolution -

SEACEN

0 148,500 148,500 n.a.

9 FS9 : SEACEN Course on Dealing with Problem and Near Problem

Banks - Singapore

0 114,700 114,700 n.a.

10 FS10: 2016 SEACEN Policy Summit - SEACEN 0 400,000 400,000 n.a.

11 FSS programs in FY2015 1,668,500 0 -1,668,500 (100.00)

iii) Payment and Settlement Systems (PSS) 471,500 262,800 -208,700 (44.26)1 PS1: SEACEN Foundation Course on Payment and Settlement -

Cambodia

0 78,600 78,600 n.a.

2 PS2: 11th SEACEN Intermediate Course on Payment and Settlement

Systems for Emerging Economies - Chinese Taipei

0 115,300 115,300 n.a.

3 PS3 - SIGNATURE PROGRAM: SEACEN Advanced Course on

Payment and Settlement Systems - SEACEN

0 68,900 68,900 n.a.

4 PSS programs in FY2015 471,500 0 -471,500 (100.00)

iv) Leadership and Governance (LDG) 1,481,200 1,179,000 -302,200 (20.40)1 LDG1:10th SEACEN Intermediate Leadership Course - SEACEN 0 241,100 241,100 n.a.

2 LDG2 - SIGNATURE PROGRAM: 10th SEACEN Advanced

Leadership Course - Thailand

0 643,300 643,300 n.a.

3 LDG3: Seminar on Central Bank Governance - Philippines 0 294,600 294,600 n.a.

4 LDG programs in FY2015 1,481,200 0 -1,481,200 (100.00)

EXPENDITURE ON TRAINING (GROSS) 4,755,900 4,422,500 -333,400 (7.01)

PERCENTAGE OF TOTAL 57.6% 57.6%

BANK OF JAPAN TRAINING GRANT 303,000 360,000 57,000 18.81 RM1 = JPY27.79; 1JPY = RM0.036 (FY2016)

RM1 = JPY33.00; 1JPY = RM0.030 (FY2015)

EXPENDITURE ON TRAINING (NET) 4,452,900 4,062,500 -390,400 (8.77)


* Excludes Bank of Japan Training Grant of ¥10 million (approx. RM360,000).

Classification %

Variance


Page 3

Approved Proposed

Budget Budget

FY 2015 FY 2016

RM RM RM Remarks

II RESEARCH

A. RESEARCH PROJECTS 386,500 717,400 330,900 85.61

1 RP01 : Research Project Collaborative with member banks 0 134,100 134,100 n.a.

2 RP02 : Research Project Collaborative with member banks 0 134,900 134,900 n.a.

3 RP03: Research Project Collaborative with member banks & SME (2) 0 218,400 218,400 n.a.

4 RP04: Research Project Collaborative with member banks & SME (2) 0 215,600 215,600 n.a.

5 RP05: Monetary Policy Transmission in the SEACEN Economies 0 4,800 4,800 n.a.

6 RP06: Living with Volatilities:Capital Flows and their Implications for

Central Bank Policies in SEG Economis

0 4,800 4,800 n.a.

7 RP07: Fundamental Principles of Central Bank Financial Reporting: A

preliminary Study in SEACEN Economies

0 4,800 4,800 n.a.

8 Research projects for 2015 386,500 0 -386,500 (100.00)

B. ON-GOING PROJECTS 36,800 64,600 27,800 75.541 SEG on Capital Flows 36,800 64,600 27,800 75.54 Estimation cost of 1 SME for data enhancement

2

C. HIGH-LEVEL SEMINARS 605,800 301,600 -304,200 (50.21)1 2 High Level Seminars (Just-in-Time) 605,800 301,600 -304,200 (50.21)

D. DISTINGUISHED SPEAKERS WEB LECTURE SERIES 49,500 38,850 -10,650 (21.52)1 Distinguished Speakers Web Lecture Series 49,500 38,850 -10,650 (21.52)

E. VISITING SCHOLAR PROGRAM (VSP) 297,000 233,100 -63,900 (21.52)Visiting Scholar Program (VSP) 297,000 233,100 -63,900 (21.52)

EXPENDITURE ON RESEARCH 1,375,600 1,355,550 -20,050 (1.46)


III MEETINGS

1 M1: 29th Meeting of SEACEN Directors of Supervision (back-to-back

with high-level Seminar)- SEACEN

72,900 74,000 1,100 1.51

2 M2: 15th Meeting of Directors of Payment and Settlement Systems

(back-to-back with Seminar) - SEACEN

86,100 41,600 -44,500 (51.68)

3 M3: 38th Meeting of SEACEN Directors of Research and Training

(back-to-back with DOR and DOT Seminars) - Papua New Guinea

319,400 259,700 -59,700 (18.69)

4 M4: 7th Meeting of Deputy Governors in charge of Financial Stability

and Banking Supervision (back-to-back- with High-Level Seminar on

Financial Stability - Papua New Guinea

94,500 220,900 126,400 133.76

5 M5: 15th Meeting of SEACEN Executive Committee (back-to-back

with High- Level Seminar) - Philippines

166,800 62,300 -104,500 (62.65)

6 M6: 52nd SEACEN Governors' Conference and 36th Meeting of

SEACEN Board of Governors - tbc

246,300 79,900 -166,400 (67.56)

EXPENDITURE ON MEETINGS 986,000 738,400 -247,600 (25.11)


Variance


Classification %

Reviewer fees and printing of FY2015 research projects

Engage up to 2 SMEs to conduct specific training courses

and/or research projects at US$30,000 each

Conduct 4 webinars with renowned SMEs on topics of

interest at US$2,500 honorarium per webinar

Conduct 2 Just-in-Time Seminars based on emerging

topics of interests

Page 4

Approved Proposed

Budget Budget

FY 2015 FY 2016

RM RM RM Remarks

IV. INSTITUTIONAL

A. EXPENDITURE ON STAFF 601,400 533,300 -68,100 (11.32)1 Salaries 0 n.a.

2 Merit Payment 0 n.a.

3 Employees Provident Fund 0 n.a.

4 Repatriation - Incoming & Outgoing 0 n.a.

5 Expatriate Housing Allowance 0 n.a.

6 Education Allowance for Expatriate Children 0 n.a.

7 Medical Expenses 327,000 320,000 -7,000 (2.14)

8 Staff Development 100,000 80,000 -20,000 (20.00)

9 Life Insurance Scheme 42,600 30,600 -12,000 (28.17)

10 Utilities & Servant Allowance 9,000 12,000 3,000 33.33

11 Overtime 7,200 7,200 0 0.00

12 Staff Holiday Benefits 16,500 12,500 -4,000 (24.24)

13 Service and Retirement Awards 25,500 7,000 -18,500 (72.55)

14 Optical Benefit 3,500 3,500 0 0.00

15 Sundry Payment 7,500 6,000 -1,500 (20.00)

16 Accident Insurance 22,600 24,500 1,900 8.41

17 Staff Annual Dinner/Family Day 40,000 30,000 -10,000 (25.00)

B. ADMINISTRATIVE EXPENSES 265,900 202,400 -63,500 (23.88)1 Stationary & Supplies 19,500 14,500 -5,000 (25.64)

2 Vehicle Maintenance 19,900 17,500 -2,400 (12.06)

3 Telephones and fax 75,300 39,000 -36,300 (48.21)

4 Postage & Courier Services 4,200 4,200 0 0.00

5 Company Audit & Company Secretarial 7,500 9,000 1,500 20.00 New external auditors

6 Local Travel 3,600 3,600 0 0.00

7 Entertainment 9,600 9,600 0 0.00

8 In-house Printing 6,000 6,000 0 0.00

9 Greeting Cards 1,300 1,000 -300 (23.08)

10 Recruitment Expenses 26,000 15,000 -11,000 (42.31)

11 Overseas Travel 85,000 75,000 -10,000 (11.76) Attend BIS/IMF Annual Meetings and courtesy visits.

12 Miscellaneous Expenses 8,000 8,000 0 0.00

%


Variance

Classification

Staff salary-related expenditure to be presented

separately to EXCO

* Approved salary-related budget for FY2015 is

RM4,828,900.

Page 5

Approved Proposed

Budget Budget

FY 2015 FY 2016

RM RM RM Remarks

C. PREMISES AND EQUIPMENT 30,700 62,200 31,500 102.611 Equipment Purchase 0 50,000 50,000 n.a. Purchase of a new photocopier

2 Equipment Maintenance 4,900 4,100 -800 (16.33)

3 Equipment Insurance 9,000 8,100 -900 (10.00)

4 Premises Maintenance 16,800 0 -16,800 (100.00)

D. COMPUTERISATION 268,000 419,900 151,900 56.681 Hardware 25,700 82,500 56,800 221.01 Purchase of 2 servers: replacement and back-up

2 Hardware Maintenance 16,500 12,400 -4,100 (24.85)

3 Internet and Related Communication Charges 18,600 19,000 400 2.15

4 Software Program 207,200 306,000 98,800 47.68a. Renewal of annual software subscriptions 102,500 208,000 105,500 102.93 Renewal of subscription of SEACEN Portal licences and

maintenanceb. Software applications 104,700 98,000 -6,700 (6.40)

E. MEMBERSHIP 1,500 1,000 -500 (33.33)1 Malaysian Employee Federation 1,500 1,000 -500 (33.33)

F. COMMUNICATIONS 257,800 290,300 32,500 12.61

i) Institutional Publications 63,500 59,600 -3,900 (6.14)1 SEACEN Programme 2016 8,400 16,100 7,700 91.67 Increase in the number of hardcopy printing

2 SEACEN Profile 2016 (with web updates) 4,700 6,700 2,000 42.55

3 Annual Report 2015 4,600 5,400 800 17.39

4 SEACEN Financial Stability Journal 31,500 20,200 -11,300 (35.87) Decrease in the number of hardcopy printing

5 SEACEN E-Alumni Updates 1,700 700 -1,000 (58.82) Decrease in the design cost

6 Publication Design and Distribution 12,600 10,500 -2,100 (16.67) Decrease in the number of hardcopy printing

ii) Communication Activities 3,800 0 -3,800 (100.00)1 Communications Activities 3,800 0 -3,800 (100.00)

iii) Knowledge Management 9,800 10,000 200 2.041 Periodicals 6,800 6,800 0 0.00

2 Books 3,000 3,200 200 6.67

iv) Database Subscriptions 180,700 220,700 40,000 22.141 Database Subscription 180,700 220,700 40,000 22.14

G. CONTINGENCY (5% from total B+C) 10,600 13,200 2,600 24.531 Contingency 10,600 13,200 2,600 24.53

EXPENDITURE ON INSTITUTIONAL 1,435,900 1,522,300 86,400 6.02


GRAND TOTAL 8,250,400 7,678,750 -571,650 (6.93)

USD1 = RM 3.7 + 5% contingency

Increase in the printing cost (digital printing)

Increase subscription fees of new database (exc. rate &

GST)

Classification %


Variance

Page 6

9:87$;:85?$9@ab@$*5c$3bd65@ e 8f...2015/09/14 · presentation by chair of exco task force, bank of...

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