Financial Services Volunteer Corps

WEF Financing for Development Workshop

Private Sector Governance Training : Can a Global Corps of Financial Experts Help??

Hong Kong

March 15, 2005

2

FSVC’s Mission

To help build the sound financial infrastructure required by countries seeking to develop transparent, market-oriented economies.

• A functioning banking system is a prerequisite for a successful market economy

• Strong and healthy banking systems are essential to fostering sustained economic growth and creating jobs

3

Brief History • Founded in 1990 at Bush 41 presidential request

by John Whitehead and Cyrus Vance

• Has engaged over 5,500 voluntary experts from the financial, legal and regulatory communities on over 1,500 programs since inception

• Has reached over 30,000 counterparts in 30 countries

• Has delivered over $155 million in technical assistance by leveraging the pro-bono service of volunteers -- more than double the amount of U.S. Government and private grants to FSVC

4

Our Status

• Private-public sector partnership

• US registered Not-for-profit organization

• Provider of unbiased, expert advice • Use active financial, legal and regulatory

professionals serving as volunteers

• Able to give timely input on specialized issues, generally through short-term technical assistance or training programs

5

Current FSVC Operations

• During 2004, FSVC delivered 149 programs in 20 countries

• Current offices in 12 countries: -Afghanistan

-Albania-Bosnia and Herzegovina-Croatia-Egypt-India-Indonesia-Jordan-Macedonia

-Morocco-Russia-United States

• Full-time staff of 59: -34 in New York & Washington

-25 Overseas

6

Core Competencies

Central Banking

Commercial Banking

Small and Medium Enterprise Lending

Banking / Financial Legislation

Anti-Money Laundering

Corporate Governance

Payments System Development

Audit & Accounting Issues, including MIS and IT

Pension / Insurance Reform

Capital Markets

7

Typical Program Structures

Out-of-Country Projects

• Legal commentary

• Working visits to counterpart financial institutions and regulatory authorities

• Training programs for officialsfrom client institutions

• Internships with US financial institutions

In-Country Projects

• Advice at policy level, including legislative reviews or sector assessments

• On-site technical consultations

• Workshops/roundtable discussions

• Customized training programs for officials/staff from client institutions

8

Representative US Organizations that Provide Volunteers

• Bank of America• Citigroup• JP Morgan• Wachovia • BB&T • Union Planters Bank• Union Bank of California

• Independent Community Bankers of America

• Tennessee Bankers Association

• Depository Trust Corporation• New York Stock Exchange

• Alston & Bird• Bingham McCutcheon• Shearman & Sterling• Simpson, Thatcher & Bartlett • White & Case

• Federal Reserve System• Federal Deposit Insurance Corporation• Office of the Comptroller of the Currency• US Securities & Exchange Commission

• Association of Certified Anti-Money Laundering Specialist

• Global Association of Risk Professionals

Over 150 corporations and organizations have provided FSVC with volunteers in 2004

9

International Organizations that Recently Provided Volunteers

• World Bank• European Central Bank• National Bank of Poland• Bank of Italy• Monetary Authority of Singapore• Financial Intelligence Unit of the Thai Government

• UBS CSFB Allen & Overy

• Hungarian Pension Association• Bombay Stock Exchange• London Stock Exchange / AIM • Canadian Stock Exchange (Vancouver and Toronto)

About 20-25% of FSVC’s volunteers now come from European or non-American sources

10

Recent Training Projects

• Internal Audit for the MoF, Afghanistan– KPMG International volunteers– Bahrain Institute of Banking and Finance

• Russian Banker Conference– Association of Russian Regional Banks– RusRatings– US Federal Reserve, FDIC and Treasury

• Indonesian Broker Dealer Training on AML– US investment bank compliance officer– Canadian Stock exchange official – Indonesian government (Bapepam)

11

Upcoming Projects

• Russian and Ukraine banker training & internship courses (June 2005)

• Indian workshops on best SME practices including lending techniques (May and June 2005)

• SME lending seminar in Jordan in conjunction with the Arab Academy (late May 2005)

• Joint workshops with Financial Stability Institute, BIS in Middle East

• SME lender training under US government guarantee scheme, Kabul, Afghanistan (May & June 2005)

12

Current FSVC Funding Sources

• Government Grant Funding under USAID and US Department of State grants

• Private Foundation funding (Citigroup, Carnegie)

• Direct projects paid for by client counterparts on a cost-plus basis , generally for customized training

• Multi-lateral Institution project funding (one-off)

13

Sustainability Issues

• Official bi-lateral or multi-lateral funding sources tends to be geographically oriented or defined, not by issues or policy initiatives

• Voluntary advisory or training modality is not always price competitive with full time residential advisors

• NGO’s or voluntary associations are disadvantaged under the competitive bid processes of multi-lateral agencies for consulting services

• Local counterparts (banking associations and training facilities are chronically underfunded by their own governments and not required to partner for international best standards and practical training

14

John C. Whitehead Co-Chairman

Paul A. Volcker Co-Chairman

John L. Walker President

J. Andrew Spindler Executive Director

For more information, please contact:

Betsey WoodSenior Managing Directorewood@fsvc.org

Board of Directors and Management

Financial Services Volunteer Corps800 Third Avenue, 11th FloorNew York, NY 10022Telephone: (212) 771-1400Fax: (212)771-1463www.fsvc.org