Pierre J. Séguin

The Senior Bank Supervision Expert will complete a thorough assessment of the CBL's bank supervision department (BSD) and then, in coordination with senior CBL counterparts, develop an action plan for the reorganization, upgraded staffing, and training BSD. The action plan will aim to achieve robust adherence first to CAMEL and then (if/as warranted) to BASEL II/III on-site examination and off-site financial reporting/performance requirements, designed to ensure commercial bank's sound financial performance

A strong focus will be on maintaining ensuring essential compliance with core capitalization, liquidity, asset balance/integrity, management, and earnings norms. LPFM's Bank Supervision Expert will also support the planning and competitive procurement -- using CBL funds -- of an off-site sound analysis and risk management IT platform. LPFM's Bank Supervision activities will be supported by a vigorous and agile combination of formally structured training modules and supplementary on-the-job-training activities.

The expert is to assist ADB and the Central Bank of Azerbaijan to assess the impact of COVID-19 on the nonbank and microfinance sectors and draft a framework outline for the creation of a National Microfinance Strategy.

The expert will primarily lend his expertise by providing inputs and support for the improvement of policy, regulatory, and the institutional framework for appropriate nonbank and alternative financial services

• Assess the state of the microfinance sector with details on how the pandemic has further impacted business. The assessment will cover the microfinance market, policy and regulation, institutions and their capacity, delivery channels and digitization, governance, and products & services in Azerbaijan.
• Design a viable microfinance model to enhance the sector's impact on the Covid.
• Hold roundtables and workshops with sector participants and official counterparts to assess the state of the sector and communicate options for a microfinance model.

The expert provides technical assistance to the Banking Supervision Department of the Central Bank of Yemen (CBY) to articulate a sound banking supervision reform strategy and draft sound business and financial practices. This technical assistance shall include the development of an off-site supervision manual and supporting tools and an on-site examination program based on risk-based supervision's best practices and introduce a comprehensive departmental restructuring plan.
To achieve this, the expert will:

• Deliver on-the-job training on off-site analysis procedures/techniques to be followed by off-site financial analysis exercises to relevant supervision department staff.
• Further, refine as needed and facilitate approval and initial implementation of draft bank supervision guidelines and manuals to improve staff's ability to supervise the banks.
• Work toward the approval and implementation of the restructuring plan for the Bank Supervision Department, which is a critical step in adopting modern bank supervision protocols.
• Pursue effective introduction of an improved off-site supervision regulatory / framework at CBY and provide related recommendations on off-site financial reporting. Software needs (in coordination as needed with an IT expert).

The consultant will review the Specialized Deposit Institution (SDI) sector in Ghana, including its structure, envisaged, and actual role of each type/tier of SDI, permissible activities, laws and regulations, financial performance, and perform the following actions.

• Assess the adequacy of the oversight structure in place, including the role of the Bank of Ghana and delegated entities (ARB Apex Bank, CUA, etc.), and the division of labor between the Bank of Ghana and delegated entities, including resources allocation and technical skills.
• Assess the adequacy of the current regulatory framework including examining, licensing requirements, prudential standards on capital, liquidity, lending, corporate governance, related party transactions, etc.
• Identify factors that led to the current challenges and lessons learned Make detailed recommendations to address the identified challenges, covering all relevant aspects such as structure of the sector, regulatory and supervisory framework and capacity, and prudential standards.
• In making the recommendations, identify specific changes/improvements that are required, for instance, particular regulations/guidelines or provisions in regulations/guidelines
• Propose an action plan for the implementation of the recommendations, Deliver a stakeholder workshop to share the findings and recommendations.
• SDI: Credit Unions, Microfinance Companies, Rural and Community Banks, Micro Credit Companies, Financial Non-Governmental Organisations, Savings and Loan Companies, and Finance Houses.

The consultancy will help the Central Bank develop and implement a comprehensive supervisory framework and draft several laws. The framework will establish the standard of supervision the financial sector will be subjected to by the Central Bank and further expand its supervisory oversight to Samoa's financial institutions.

There will be a requirement to review the current financial sector regulatory environment and transition within the Central Bank's umbrella. All those financial institutions currently are not subject to the Central Bank's statutory authority. As necessary, draft amendments to relevant legislation to provide for this and provide for consistency between different pieces of applicable laws. This will also include preparing a new Moneylenders Act, Microfinance Act, and a Credit Unions Act including applicable regulations.

This assignment aims to provide technical assistance to the Central Bank of Samoa to comply with recently-issued government policy by establishing and operationalizing a supervisory framework that encompasses all financial institutions in Samoa and amends relevant legislation to provide for this.

The project aims at strengthening the capacity of the Financial Regulatory Commission, the Savings and Credit Cooperatives sector, and the League with expanding the business operations and risk management approach of each institution, introducing the concept of financial inclusion and implementing a resolution program for insolvent or at-risk institutions.
The consultant initializes the tasks developed during the previous project by providing continued support to the Financial Regulatory Commission to implement a Risk-based Supervision program. The program includes reviewing financial results, assessing risk based on defined prudential standards, and the effective deployment of a comprehensive resolution work plan. This review will culminate with the issuance of remedial actions against insolvent Savings and Credit Cooperatives, including mergers, closures, and or the rehabilitation of institutions based on the result of an off-site supervision assessment, on-site inspection, and discussions with stakeholders.

The consultant will further:

• Provide outreach training to members of the Supervisory Committee by staging a series of regional workshops to increase their knowledge base of the internal audit function and develop sound business plans with expanded financial products aimed at improving services to members and achieving a broad financial inclusion outreach.
• Assist members of the Commission's on-site inspection department during its performance of a series of pilot inspections as part of the deployment of a new on-site risk-based inspection program.
• Develop additional risk assessments and evaluation tools as needed to support the operationalization of a deposit insurance scheme and a stabilization fund.
• Guide the Commission towards developing a financial sector road map, including a comprehensive Supervisory Framework that will support the concept of financial inclusion by making financial services more accessible to underserved regions.
• Provide continued support to the Commission with the drafting of a new Law and Regulations.

The assignment required a comprehensive review of the lending manual and its application of its credit risk framework currently in place against the institution's current credit and risk assessment approach as performed during a loan application, underwriting, management, monitoring, and collection.

This assignment further involved:

• A review of investment and loan policies
• An analysis of the management of the non-performing loan portion of the portfolio
• A review of tools currently in place that guide and manage the lending decisions, and
• The provision of recommendations as required.

The consultant further provided;

• Recommendations for an adequate level of good Governance,
• A matrix that will address managing non-performing loans,
• Accounting considerations,
• New or amended current guidelines as required,
• Introduce systems and procedures for areas of concern that have been identified, and
• Justification for all recommendations based on argument and empirical evidence.

Provide training to the Department of Cooperatives DoC, Nepal Federation of Savings and Credit Unions, and Nepal Cooperative Federation to adequately perform the off-site supervision and on-site examination of Savings and Credit Cooperatives (SACCOs).
Develop a draft Supervisory Framework and an outline of an off-site and on-site manual for the supervision of the sector (SACCOs)
Identify existing gaps in COPOMIS for off-site supervision of SACCOs and recommend improvements. Support DoC in developing identification indicators for problematic SACCOs and analyze 30 large SACCOs through the current and proposed Supervision program.
Provide support in identifying problematic SACCOs and develop an early warning system.
Organize a workshop to improve the training course and materials for supervision, examination, and SACCOs monitoring.

The Technical Advisor introduced a comprehensive Risk-Based Supervision Program for the Mongolian Financial Regulatory Commission's oversight of its Savings and Credit Co-operative/ Credit Unions sector. The program included developing a Supervisory Framework, a set of prudential standards, off-site supervision tools, and implementing an on-site inspection program. The consultant further staged a series of workshops on establishing a League and provided direction on implementing good governance. The technical assistance also included developing a roadmap that defined the financial resources and funding required to establish a Stabilization scheme and Deposit Insurance program to encompass all credit unions. The expert defined and formulated the scheme's functions and structures. A national forum was organized to identify and solicit stakeholder involvement. Additional support was provided with a legislative and regulatory framework by drafting a new Credit Union Law, Regulations, and Bylaws, including introducing international oversight best practices and reporting. The expert organized a study tour for six officials to the International Credit Union Regulators Network, held in Vancouver, Canada.

As a microfinance regulation and supervision specialist, I assisted the Bank of Papua New Guinea by identifying potential partners to join the project.

Many Savings and Loans Cooperatives operate in the country without proper registration and licensing, and they are often confused with local Microfinance operations. The expert reviewed several institutions' processes and financial reporting to establish the type of activity they were performing. Once the review has been completed, the Bank of PNG was informed about each entity's operational status and provided with some direction as to the steps required to legitimize each institution.

Assisted the National Bank of Ukraine's implementation of a roadmap to guide its assumption of the Non-Bank Financial Institution sectors ahead of anticipated legislative changes in oversight and supervisory responsibilities. Support was also provided in several key areas, including; performing an analysis of the necessary measures (regulatory, organizational, technical, etc.) to be taken concerning the transfer of supervisory functions of NBFI from the current regulator, the Financial Commission, to the National Bank of Ukraine. The essential task was developing a roadmap that will outline the steps required to ensure the transition and absorption by the NBU of the identified NBFI will be seamless. There was a further requirement to present recommendations for developing or strengthening the institutional capacity of the NBU in the area of NBFIs regulation and supervision and addressing the challenges that may arise during the transition period.

As a technical advisory team member, I provide professional advisory services to the Federation by reviewing the Financial Cooperative sector in Singapore. Following a series of interviews and research, appropriate comments and recommendations were provided that will stimulate the sector's growth, enhance governance and mitigate risk on the twenty-two Credit unions that are providing financial services to the Singapore Society. The task also included providing recommendations on strengthening these institutions' safety and soundness and improving their competitiveness over the next 3 to 5 years.

Several recommendations were provided, including a set of Prudential Standards, Risk-Weight Capital Adequacy Calculation, and accounting changes.

The Banking Regulation and Supervision Support (BRASS) Project implemented at the State Bank of Vietnam by Cowater aimed at strengthening the banking regulatory and supervisory framework in Vietnam under international standards. The project focused its efforts on improving the institutional and technical capacity of the Banking Supervision Agency of the State Bank of Vietnam, which has the mandate to regulate, license, and supervise banks in Vietnam. A series of risk-based supervision manuals and examination working papers were developed based on reviewing a set of significant activities. The project also supported selected departments that play a crucial role in supporting the Banking Supervision Agency in fulfilling its mandate.

In this position, I was responsible for identifying and addressing the capacity building and technical assistance needs of Pacific island countries in financial sector supervision. This assistance includes providing direct technical support in commercial bank supervision and regulation, on-site examination, off-site supervision, problem bank intervention, and implementing the Basel Core Principles on Banking Supervision, including Basel II. This assistance is provided based on workshops and by-lateral direct technical advisory services, which is enhanced by developing and implementing an on-site examination program. The secondary area of work involves providing advice with the supervision and regulation of non-bank financial institutions, emphasizing the development and implementation of a comprehensive credit union legislative, reporting, and oversight program. Several technical programs included securing and managing short term experts.

I was further involved in delivering workshops related to financial inclusion, microfinance, credit unions, and Cooperatives, including elements of banking the unbanked, which is considered a critical component for economic development in the region.

Technical assistance was provided to; Fiji, Samoa, Tonga, Vanuatu, Solomon Islands, Cook Islands, Papua New Guinea, Timor-Leste, Palau, Micronesia, Kiribati, Tuvalu, and the Marshall Islands.

The main component of the reform was the need to devise a robust strengthening of the credit union regulatory regime. A comprehensive plan was designed to execute credit unions' transition from the current government to the Central Bank. This action required developing a transition plan and training program for off-site supervision and on-site examination for central bank staff. The final component was drafting a new Bahamas Credit Union Act and relevant Regulations and By-laws, which included staging several industry-wide consultations.

A secondary element of my tasks was the delivery of a technical sector-specific program that included the development of a comprehensive training curriculum aimed at credit union's managers to enhance their skills in the area of risk management, corporate governance, credit initiation, and monitoring processes, non-performing loan management, liquidity, and treasury management and internal audits.

This project was funded by CIDA Canada and involved managing the deployment of several program components aimed at building capacity in human resources management, change management, and microfinance supervision at the Central Bank. The program delivery included providing short-term technical assistance supported by some short-term experts assigned to perform specific tasks based on a work plan developed and approved by the Central Bank. The project was managed out of Canada with frequent travels to Congo.

As Resident Manager, I was tasked to oversee the project's Hanoi office, comprised of several local experts supplemented with short-term international experts. The project achieved its prescribed goal to improve the banking sector's oversight in Vietnam to facilitate private sector development and poverty-reducing economic growth. Working with the State Bank of Vietnam in support of the Government of Vietnam's banking sector reform strategy, the project strengthened the banking sector in Vietnam through a targeted technical assistance program and training to both the State Bank and selected commercial banks. The emphasis was on providing technical support to banking supervision, human resources, and internal audit departments. This assistance supported the State Bank's overall organization and management in its ability to carry out its banking supervision functions in a more open, market-oriented economy and strengthen commercial banks' governance and operations.

Developed and implemented plans to innovate and increase business competitiveness.

• Consulted with and advised senior government and business leaders on trade strategies
• Seek and provided market intelligence on business and economic issues
• Developed economic development initiatives within the business community
• Managed trade and investment missions to increase business opportunities
• Lead project teams within the Ministry and with the private sector

Managed the annual statutory inspection program of the financial institutions sector in Ontario; Portfolio of 155 institutions

• Conducted oversight of Financial Institutions (Banks, Credit Unions, Mortgage brokers; Insurance companies and Trust Companies)
• Developed an off-site banking supervision program. CAMEL Based
• Provided financial institutions with specific recommendations on compliance issues with the Act, its regulations and banking policies
• Established uniform banking procedures and subsequently develop new concepts and standards for inspection
• Performed specialized banking examinations and management reviews including
  • Loan and mortgage reviews including allowance for doubtful loans calculations
  • Management and staff reporting procedures
  • Internal and external security procedures
  • Branch inspection
  • Asset - Liability matching
• Prepared and delivered a final reports presented to board of directors outlining findings and compliance requirements for their review, consideration and action.