Moscow, Russia, May 27, 2008—IFC,
a member of the World Bank Group, has launched a seminar series in Russia
to help improve the banking sector’s risk management and capital allocation
practices. The initiative targets mainly midsize and regional Russian-owned
banks, as well as the broader banking sector.
The first seminar, “Liquidity and Interest
Rate Risk Management in the International Practice,” was held in Moscow
in April 2008. Experts from IFC, the KBC Group, KPMG, Reuters, and
Ramasoft made presentations on international best practices and on their
organizations’ recent experiences. More then 100 bank managers
and specialists from 56 banks participated in the seminar.
“Given the uncertainty and heightened
risk in global financial markets, Russian banks need to strengthen their
internal control and risk management systems and improve their capacity
for formulating coherent business strategies with sound underlying capital
management. This seminar series will address a vital need of the
banking sector,” said Judit Burucs, project manager of the IFC Russian
Banking Advisory Project.
Since its launch in September 2007,
the IFC Russia Banking Advisory Project has developed a toolkit on working
with banks. This includes a two-phase approach, with diagnostic and implementation
phases. IFC has also designed a risk management operations’ analysis questionnaire
for banks, covering areas such as risk management, asset and liability
management, internal controls, and capital management. “The questionnaire
not only provides guidance for any diagnostic team to analyze a particular
bank, but it also helps the management of a bank perform a self-assessment,”
IFC prepares guidelines on the management
of different types of risk as well as general risk management policies.
Most recently, it completed a comprehensive diagnostic of the risk management
situation at LOCKO Bank, a Moscow-based, midsize bank and an IFC investment
Additional seminars will be organized
in St. Petersburg and Yekaterinburg in June 2008. For more information
The IFC Russia Banking Advisory Project
is supported with funds from the governments of Finland and the Netherlands.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC's vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.