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transcript
34th SEACEN BOG Minutes Page 1 of 27
MINUTES OF THE THIRTY-FOURTH
SEACEN BOARD OF GOVERNORS MEETING
21st November 2014
Port Moresby, Papua New Guinea
1. The Thirty-Fourth SEACEN Board of Governors (BOG) Meeting was hosted by the
Bank of Papua New Guinea (BPNG) in Port Moresby, Papua New Guinea on 21 November
2014, in conjunction with the Fiftieth SEACEN Governors’ Conference and High-Level
Seminar with the theme “Regional Initiatives in the Midst of Vulnerabilities.”
2. The Meeting was attended by 19 of 20 members of the BOG or their
representatives. SEACEN was represented by Mr. Hookyu Rhu, Executive Director. The list
of BOG members and/or representatives who attended the Meeting is presented in
Attachment 1.
Agenda Item I: Election of Chair
3. Mr. Loi Bakani, Governor of BPNG was unanimously elected as Chair of the Thirty-
fourth SEACEN BOG Meeting, and will remain as Chair of the BOG until the next BOG
Meeting.
4. On behalf of the BOG, the Chair expressed deep appreciation to the outgoing BOG
Chair, Dr. Yuba Raj Khatiwada, Governor of Nepal Rastra Bank (NRB), for his effective
leadership and commitment during his term as Chair of the SEACEN BOG and Executive
Committee (EXCO) for the Financial Year (FY) 2014.
Adoption of Provisional Agenda
5. The Chair proposed and the BOG adopted the Provisional Agenda without
amendment.
34th SEACEN BOG Minutes Page 2 of 27
Agenda Item II: Admission of the Hong Kong Monetary Authority (HKMA) as SEACEN
Twentieth Regular Member
6. On behalf of the SEACEN BOG, the Chair welcomed the HKMA as the 20th Regular
Member of SEACEN with effect from 1 November 2014 on the same terms applicable to all
existing SEACEN regular member banks. Mr. Eddie Yue, Deputy Chief Executive of the
HKMA expressed deep appreciation to the SEACEN BOG for the unanimous approval and
the privilege of joining SEACEN and looked forward to close collaboration to enhance the
scope of regional cooperation on economic and financial matters that will be mutually
beneficial to SEACEN member banks.
Agenda Item III: Adoption of the Minutes of the Thirty-Third SEACEN BOG Meeting
7. The Minutes of the Thirty-Third SEACEN BOG Meeting held in Kathmandu, Nepal
on 22 November 2013 was adopted without amendment.
Agenda Item IV: Matters Arising
8. The BOG noted that matters arising from the Thirty-Fourth SEACEN BOG Meeting
would be taken up in subsequent agenda items.
Agenda Item V: Report on SEACEN Trust Fund Activities for FY 2014
9. The BOG noted the SEACEN Trust Fund (STF) activities undertaken during FY
2014. Details on the activities are presented in Attachment 2.
10. The BOG was informed that four member central banks, namely the National Bank
of Cambodia; Bank of the Lao, PDR; Central Bank of Myanmar; and NRB, will be eligible for
scholarships under the STF in 2015. Eligibility for STF scholarships was based on SEACEN
member central banks from economies that register a Gross National Income (GNI) per
capita of less than the World Bank’s income threshold of USD1,215 for financial year 2015
were eligible for scholarships. With a total of 32 STF scholarships available for allocation in
2015, each of the eligible central bank will be awarded with eight scholarships. The State
Bank of Vietnam, having registered an income level higher than the World Bank’s income
34th SEACEN BOG Minutes Page 3 of 27
threshold for three consecutive years, has graduated from an STF scholarship recipient
central bank in 2014 to a SEACEN Additional Scholarship (SAS) contributor in 2015.
Agenda Item VI: Report by the SEACEN Executive Committee (EXCO)
11. The BOG noted that the EXCO had reviewed the implementation of strategic
initiatives and program of activities of SEACEN for FY 2014:
Formulation of Strategic Business Plan (2015 – 2017) (The Plan): SEACEN had
revised the Plan to be aligned with the proposal of the Remuneration Committee
(RC) on the organization structure.
SEACEN Financial Stability Journal (the Journal): SEACEN had lodged the
second and third volumes of the Journal in April and November of 2014. SEACEN
has made efforts to expand readership of the Journal.
SEACEN Supervisory Discussion Room (SSDR): SEACEN had conducted two
SSDR sessions in 2014 – June and Septermber which were participated in by
officials from 10 and 16 member banks respectively.
SEACEN Cyber Security Summit 2014 (Summit): SEACEN had implemented the
Summit with the theme “Demystifying Cyber Risk: Evolving Regulatory
Expectations” with a faculty comprising Deputy Governors and internationally
renowned experts, and over 50 delegates in attendance. The BOG noted that the
EXCO has encouraged SEACEN to continue seeking potential topics that can raise
awareness and infuse best practices in central banking in the likes of the Summit.
The BOG stressed that SEACEN should consider going beyond just implementing
the Summit to include a platform for member banks to discourse and exchange
ideas on the effects on cyber security threats on member banks’ payment and
settlement systems. The Meeting noted that SEACEN may go further to voice its
views on some key emerging issues, building on some of its good meeting program
initiatives such as the Cyber Security Summit. For example, when the BIS
Committee on Payments and Market Infrastructures (CPMI)’s guidance regarding
financial market infrastructures (FMIs)’ resilience to cyber attacks was released,
SEACEN could offer its response.
34th SEACEN BOG Minutes Page 4 of 27
ASEAN Financial Integration Framework: SEACEN had implemented six
customized learning programs in FY 2014 and identified 11 learning programs for
FY 2015 to address the learning needs of ASEAN newer members, namely Brunei
Darussalam; Cambodia; Lao, PDR; Myanmar; and Vietnam.
12. The BOG noted the progress on the 15 learning programs; two research projects,
where two out of four workshops have already been implemented; the High-Level Seminar
on “Global Liquidity and Impact of Capital Flows on Exchange Rates in Emerging Asia”; the
publication of seven working papers; and, the conduct of five high-level meetings (held back-
to-back with High-Level Seminars) and the rescheduling of the Seminar on Central Bank
Governance to 11 – 13 February 2015 due to the non-availability of key resource speakers.
SEACEN and the Center for Latin American Monetary Studies (CEMLA) had agreed that the
IV CEMLA-SEACEN Conference, which was initially rescheduled from November 2014 to
February 2015, will be put on hold until further notice. The BOG emphasised that SEACEN
and CEMLA should not lose the opportunity to promote cross-regional interaction between
member banks of the SEACEN and CEMLA regions and address issues and challenges in
continuing with the joint conference initiative. SEACEN will explore other possible initiatives
of mutual interest with CEMLA. The BOG also noted that the remaining approved programs
for FY 2014 will be implemented as scheduled. SEACEN reported that preparatory work of
programs will commence much earlier to secure the availability of resource speakers.
13. The BOG noted the EXCO’s suggestion for SEACEN to continue improving the
content of learning programs, ensuring that coverage was topical and comprehensive. In
addition, some learning programs should also include, where appropriate, the integration of
the three pillars of central banking.
14. The BOG agreed with the EXCO’s suggestion for SEACEN to provide qualitative
and quantitative indicators when reporting on the learning and research program evaluation.
While the BOG commended SEACEN on the publication of the research working papers,
SEACEN should consider publishing the papers internationally to improve international
recognition. As an example, the BOG suggested that SEACEN should track the number of
downloads and hits and report the results to the EXCO and BOG as an indication of the
relevance and use of the research output.
15. The BOG noted that the EXCO had reviewed and considered the budget utilization
for FY 2014. The total estimated expenditure incurred for FY 2014 of RM10,178,041, which
was based on the actual expenditure for the first nine months ended 30 September and
34th SEACEN BOG Minutes Page 5 of 27
estimated expenditure for the three remaining months ending 31 December 2014, remained
well within the approved budget of RM11,665,300, at 87.3 per cent. The unutilized portion of
12.7 per cent of the approved budget was mainly due to the rescheduling of the Seminar on
Central Bank Governance to 2015; putting on hold of the IV CEMLA-SEACEN Conference;
filling up the vacant Senior Manager position only in July 2014; the vacant Senior Economist
position which would not be filled in 2014; and, the write-back of overprovision of accruals for
FY 2013.
16. The BOG reiterated the EXCO’s recommendation for SEACEN to review the need
for ceremonial events (eg. opening and closing ceremonies) during SEACEN learning
programs, to minimise travel-related expenditure. SEACEN emphasized the need for the
Executive Director to deliver the opening remarks during the opening ceremonies to set the
context for the programs as well as to represent SEACEN when senior officials of host banks
are present at the ceremonies.
17. The BOG also reiterated the EXCO’s recommendation for SEACEN to be prudent
with overseas travel which had exceeded the approved budget in FY 2014.
b) Matters for Approval
i) Proposed Remuneration Scheme and Three-Year Strategic Business Plan
2015 – 2017
Proposed Remuneration Scheme
18. (minutes on the proposed remuneration scheme will be in a separate document)
Proposed Three-Year Strategic Business Plan 2015 – 2017 (the Plan)
19. The BOG noted that based on the EXCO’s comments, SEACEN had reformulated
the Plan with clear road map and milestones, to be aligned with the RC’s proposal on the
revised organization structure of SEACEN. The Plan focused on broad strategies, namely to
enhance the SEACEN brand; greater emphasise on higher quality learning solutions and
research output; provide additional services and develop a robust talent management
framework.
34th SEACEN BOG Minutes Page 6 of 27
20 The BOG approved the setting up of an EXCO Ad-Hoc Advisory Committee to
advise and guide the new Executive Director on the transition to implement the new
organization structure and remuneration scheme. To avoid any further delay, the BOG also
approved the provisional Plan on the basis that the new Executive Director be given the
opportunity to contribute insights and re-shape the Plan together with SEACEN’s new
management, emphasizing that no newly proposed strategic initiatives with long-term
implications beyond 2015, should be implemented in 2015 particularly freezing the
employment of new staff. This review should include how SEACEN employees in mission-
critical positions should contribute to both training and research. The new management’s
proposed enhancements, if any, should be submitted to EXCO for consideration and
recommendation to the BOG for approval.
ii) Establishment of EXCO Task Force on SEACEN Funding Model
21. The BOG approved the establishment of an eight-member EXCO Task Force (the
Task Force) to review the SEACEN funding model, and identify the most appropriate model
and its implications on the governance practices of SEACEN. The Task Force, which will be
chaired by the EXCO member from BPNG, is comprised of EXCO members from Autoriti
Monetari Brunei Darussalam (AMBD); People’s Bank of China (PBOC); Bank Indonesia (BI);
Bank of Korea (BOK); Bank Negara Malaysia (BNM); NRB; Bangko Sentral ng Pilipinas
(BSP); and, Monetary Authority of Singapore (MAS). SEACEN will perform the secretariat
role for the Task Force. The BOG noted that SEACEN has conducted a preliminary study in
identifying five possible funding models, which could be a good starting point for the EXCO
Task Force’s review. The BOG noted that while SEACEN had presented some options in a
preliminary paper without making any specific recommendations, the EXCO Task Force’s
review need not be restricted to the options laid out in this paper. The Task Force is
expected to propose the most appropriate model by June 2015 and submit to the full EXCO
for consideration at the EXCO meeting, and EXCO’s recommendation for the final decision
at the BOG meeting in 2015. It was suggested that the use of e-mail exchanges and web-
conferencing be maximized to avoid frequent travels, as well as leverage on having back-to-
back meetings for necessary face-to-face engagement. The BSP, as the next Chair of BOG
and EXCO, offered to host the final meeting of the Task Force, subject to approval from their
Bank’s management.
iii) Proposed Recruitment Process for Executive Director Position
34th SEACEN BOG Minutes Page 7 of 27
22. The BOG noted that the three-year term of the Executive Director (ED) of SEACEN
will expire on 30 June 2015 and 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 recruitment process had only commenced in October 2014. The BOG noted the
three options for the composition of an EXCO Interview Committee (EIC) and approved the
EXCO’s recommendation to establish a seven-member EIC to be headed by the EXCO
Chair. The BOG also approved the appointment of EXCO members from NRB, BPNG and
BSP as the Troika (past, present and future Chairs) and four founding members, namely BI,
BNM, Central Bank of Sri Lanka (CBSL) and Bank of Thailand (BOT), as members of the
EIC. The interviews will be conducted in Kuala Lumpur and SEACEN will perform the
secretariat role for the interviews.
23. The BOG noted that all the EXCO members will assess all applications received
and submit their respective responses on the ranking of the candidates to the EXCO Chair.
From the compilation of the EXCO members’ responses, the three-highest ranked
candidates will be identified together with two others for the reserve list. The compiled results
will be submitted to the EXCO for consideration and endorsement.
24. The BOG also noted that in the event no suitable candidate is identified for the ED
position after the interviews, BNM has offered to cover the cost of an executive search
process by international Human Resources firms.
iv) Proposed Learning, Research and Meeting/Seminar Programs for FY 2015
25. The BOG approved the EXCO’s recommendation on the 22 learning programs to be
implemented in FY2015 comprising seven in the Macroeconomic and Monetary Policy
Management (MMPM) knowledge block; nine in Financial Stability and Supervision (FSS);
and three each in the Payment and Settlement Systems (PSS) and; Leadership and Central
Bank Governance (LDG) areas. In addition, three collaborative research projects together
with associated research workshops; an 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 will
be implemented in 2015. High quality output from the research activities will be published
and uploaded in the SEACEN website.
Details of the programs for FY 2015 are highlighted in Attachment 3.
34th SEACEN BOG Minutes Page 8 of 27
v) Proposed Budget for FY 2015
26. The BOG approved the EXCO’s recommendation on the proposed budget for FY
2015, subject to downward adjustment to the average merit payment from 2.5 months to 2
months and the removal of ex-gratia payment to SEACEN employees. The budget for
average merit payment in FY 2015 should remain the same as FY 2014 of 2 months and the
Executive Director will continue to have the flexibility to administer the allocation of merit
payment based on the outcome of the annual performance evaluation process. Furthermore,
as the new organization structure and remuneration scheme would apply from 2016
onwards, the budget then should reflect assumptions of about one month’s bonus (with a
range of zero to two months). The BOG also reiterated that moving forward, SEACEN should
present at the annual EXCO and BOG meetings, a thorough assessment of SEACEN’s
overall performance to justify the expected average merit payment for the year. On the
proposed ex-gratia payment, SEACEN reiterated that since the last salary review of
SEACEN in 2008, several SEACEN employees have already reached the ceiling of their
respective salary bands. In order to maintain morale and to retain good talent, SEACEN had
proposed monthly ex-gratia payment for employees who achieved 4 and above in their
performance assessment for FY 2014 and have already reached the ceiling of their
respective salary bands. On another note, the BOG was informed that ex-gratis payment
was not an industrial practice in Malaysia. The BOG rejected the SEACEN’s proposal for ex-
gratia payment and reiterated that it should first be presented to the EXCO with a proposal
paper before seeking the BOG’s approval.
Details of the budget for FY 2015 (after adjustments) are highlighted in Attachment 4.
vi) SEACEN Associate Membership Applications
27. The BOG approved the EXCO’s recommendation for the admission of five invitee
central banks/monetary authorities and the only observer central bank as SEACEN
Associate Members with effect from 1 January 2015. These include the Reserve Bank of
Australia; Bangladesh Bank; Royal Monetary Authority of Bhutan; Monetary Authority of
Macao; State Bank of Pakistan, and National Reserve Bank of Tonga. The BOG was
informed that Maldives Monetary Authority and Reserve Bank of New Zealand had declined
SEACEN’s offer for Associate Membership. The EXCO recommended the six central
34th SEACEN BOG Minutes Page 9 of 27
banks/monetary authorities as Associate Members based on the assessment of their past
and potential involvement in SEACEN programs. An annual membership due of US$5,000
will be imposed on each Associate Member. The membership dues received will be
transferred to the SEACEN Trust Fund for utilization as scholarships to eligible regular
member banks. The BOG Chair will formally inform each of the six central banks/monetary
authorities of their acceptance as Associate Members after the BOG meeting.
vii) Annual Internal Audit of SEACEN
28. The BOG approved the EXCO’s recommendation for the conduct of an annual
internal audit of SEACEN by the internal auditors of BNM, as proposed by the SEACEN
Board of Directors (BOD). The objective of the annual audit was to provide assistance to
SEACEN to further improve its internal processes and ensure good governance practices.
The practice of an internal audit every two years can be reverted once the processes are in
place.
viii) Proposed Change in External Auditors
29. The BOG approved the EXCO’s recommendation for SEACEN to change its
external auditors every three years based on the same principle of good governance in
relation to the conduct of an annual internal audit. It was noted that S.J. Grant Thorton has
been the external auditor for SEACEN since 1989. SEACEN will conduct a review of the
selection of external auditors and propose to the BOD for approval at the next BOD meeting
in 2015.
c) Matters for Information
i) SEACEN-CEMLA Cross-Regional Collaboration
30. The BOG was informed that the Annual SEACEN-CEMLA Conference has been put
on hold until further notice. Besides, the non-availability of resource speakers, SEACEN and
CEMLA have observed the waning interest of SEACEN and CEMLA member central banks
in participating in the joint Conference as resource speakers and/or audience, and the main
34th SEACEN BOG Minutes Page 10 of 27
factors are the long distance travel and high travel costs, especially if the Conference is held
in the other region. SEACEN has been in collaboration with CEMLA to promote cross-
regional collaboration among SEACEN and CEMLA member central banks since 2011 and
the jointly organized annual conference has been one of the key initiatives in this cross-
regional collaboration. Thus far, three joint annual conferences have already been
conducted. The IV CEMLA-SEACEN Conference, which was initially to be held in Colombia
on 6 and 7 November 2014, was rescheduled to February 2015 due mainly to the non-
availability of key resource speakers. Consequently, even with the rescheduling of the
Conference to February 2015, the availability of key resource speakers is still in question. On
that note, SEACEN and CEMLA have agreed to put the joint Conference on hold until further
notice. This stance however, would not diminish the continued inter-regional collaboration
between SEACEN and CEMLA. Besides the joint annual Conferences, SEACEN and
CEMLA will explore more feasible cross-regional collaboration such as joint research
projects on issues of common interest, moving forward. The BOG reiterated that SEACEN
and CEMLA should continue to leverage on the implementation of the joint conference and
address any issues and challenges encountered. The BOG also suggested the possibility of
conference venues mid-way between the two regions and be held back-to-back with
international meetings for governors.
ii) Business Class Air Travel for Resource Speakers
31. The BOG noted the EXCO’s approval for SEACEN to provide business class air
travel for all external resource speakers to deliver in SEACEN programs, to source and
attract the best resource speakers for SEACEN programs. SEACEN quoted a benchmark
with the Asian Development Bank and International Monetary Fund in a comparative study
conducted in 2010.
iii) Amendments to Terms and Conditions of Service – Inpatient Benefits for New
Employees
32. The BOG was informed that with effect from 1 April 2014, SEACEN had outsourced
the administration of the employee medical benefits under a Group Medical Plan (GMP) to
AIA Berhad. 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
34th SEACEN BOG Minutes Page 11 of 27
migrating to the GMP, the BOG was informed 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 retired
employees of SEACEN, which were not covered under the GMP, were still being
administered and self-insured by SEACEN. The implementation of the GMP has progressed
well and an annual review will be conducted to assess the effectiveness of the GMP
implementation.
33. The BOG also noted the EXCO’s approval in the revision of the Terms and
Condition of Service to limit the annual inpatient coverage of new employees of SEACEN
(who joined SEACEN after 19 September 2014) and their eligible dependents, up to the
respective inpatient limits imposed under the GMP. SEACEN will not cover any excess in the
annual limits for new employees and their dependents. In the case of existing employees
and their dependents, SEACEN will continue to provide coverage should their respective
annual inpatient limits be exceeded.
iv) Revised Accrual Policy and Procedural Manual
34. The BOG noted the EXCO’s approval of the revision to SEACEN’s Accrual Policy
and Procedural Manual (the Manual) to ensure that SEACEN’s accrual processes are
aligned to accounting standards. Key highlights of the revision included:
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 BOG’s approval
via circular resolution.
v) SEACEN Additional Scholarships
34th SEACEN BOG Minutes Page 12 of 27
35. The BOG was informed that a total of 47 scholarships have been allocated among
the five eligible member banks in FY 2014, based on 32 scholarships under the SEACEN
Trust Fund scheme and 15 under the SEACEN Additional Scholarships (SAS) scheme. As of
end of October 2014, a total of 13 of the 15 SAS have been fully disbursed by the five
eligible member central banks, while the remaining two scholarships will be utilized by end of
the year.
36. The BOG approved the allocation of 20 scholarships under the SAS scheme for FY
2015. With the admission of HKMA as a SEACEN Regular Member on 1 November 2014
and the graduation of State Bank of Vietnam from a recipient member bank in FY 2014 to a
contributing one in FY 2015, the total number of scholarships under the SAS scheme for FY
2015 will be 17. Three additional scholarships will also be included into the pool so that all
four eligible member banks will receive a total of five scholarships each under the SAS
scheme in FY 2015. The three additional scholarships will be funded from the accumulated
balance of the SAS account which is managed by SEACEN.
vi) Approved Audited Accounts for FY2013
37. The BOG noted that the SEACEN BOD 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 FY 2013 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 central bank’s contribution was RM473,052. All member central
banks had already settled their respective contribution.
Agenda Item VII: Other Matters
38. No other matters were raised.
34th SEACEN BOG Minutes Page 13 of 27
Agenda Item VIII: Date and Venue of the 51st SEACEN BOG’s Conference and 35th
Meeting of SEACEN BOG
39. The BOG accepted the offer made by Deputy Governor Diwa C. Guinigundo on
behalf of Mr. Amando Tetangco, Jr., Governor of BSP to host the 35th Meeting of the
SEACEN Board of Governors and 51st SEACEN Governors’ Conference from 25 – 27
November 2015. BSP will notify the BOG on the venue and theme of the Conference in due
course.
Expression of Appreciation
40. The BOG Chair thanked all SEACEN Governors, delegates, and The SEACEN
Centre for their contribution to the successful conclusion of the 34th SEACEN BOG Meeting.
On behalf of the Governors and Heads of delegations from SEACEN member banks, Deputy
Governor Diwa C. Guinigundo, of the BSP expressed his deep appreciation to the BOG
Chair for the excellent arrangements and warm hospitality of BPNG in hosting the BOG
Conference and Meeting. He also thanked the Secretariat team for their untiring efforts in
ensuring a comfortable and memorable stay for all the delegates. On behalf of BSP
Governor Amando M. Tetangco, Jr., Deputy Governor Guinigundo extended his welcome to
all SEACEN Governors and delegates to the Philippines for the SEACEN 35th BOG Meeting
in 2015.
The SEACEN Centre
14th January 2015
34th SEACEN BOG Minutes Page 14 of 27
Attachment 1
List of Delegates
Autoriti Monetari Brunei Darussalam
1. Yusof Abd. Rahman Managing Director
2. Sufinah Sahat Executive Director
3. Sri Joedianna Mohammed Senior Manager
4. Redhuan Rajak Economist
National Bank of Cambodia
5. Chea Chanto Governor
6. Sum Sannisith Assistant Governor/Secretary General
7. Kith Sovannarith Director
8. Meng Vety Economist
People’s Bank of China
9. Zhou Xiaochuan Governor
10. He Jianxiong Director General
11. Yang Jiehan
Deputy Director
34th SEACEN BOG Minutes Page 15 of 27
Reserve Bank of Fiji
12. Barry Trevor Whiteside Governor
13. Savaira Manoa Manager – Statistics
Hong Kong Monetary Authority
14. Eddie Yue Deputy Chief Executive
15. Leon So Manager
Reserve Bank of India
16. Deepak Kumar Mohanty Executive Director
Bank Indonesia
17. Perry Warjiyo Deputy Governor
18. Erwin Rijanto Slamet Executive Director
19. Erwin Haryono Director
20. Dicky Kartikoyono Director
Bank of Korea
21. Byung Wha Jang Senior Deputy Governor
22. Seung Je Hong Director General
23. Seung Ho Baek Team Leader
34th SEACEN BOG Minutes Page 16 of 27
24. Jinhee Kim
Economist
25. Yong Hyuck Kim Jnr Economist
Bank of the Lao PDR
26. Phetsathaphone Keovongvichith Assistant Director General
27. Daomanivone Vilayvieng
Director
Bank Negara Malaysia
28. Sukhdave Singh Deputy Governor
29. Marzunisham Omar Assistant Governor
30. Nazrul Hisyam Mohd Noh Director
31. Intan Shahira Bt. Mohd Shahru Deputy Director
32. William Ben Philip Associate Analyst
Bank of Mongolia
Absent with Apologies
Central Bank of Myanmar
33. Kyaw Kyaw Maung Governor
34. Thet Thet Hla Director
34th SEACEN BOG Minutes Page 17 of 27
Nepal Rastra Bank
35. Yuba Raj Khatiwada
Governor
36. Bhagawat Acharya Assistant Director
Bank of Papua New Guinea
37. Loi Bakani Chair, SEACEN Board of Governors and Governor
38. Benny Popoitai Deputy Governor
39. Gae Kauzi Assistant Governor
Bangko Sentral ng Pilipinas
40. Diwa C. Guinigundo Deputy Governor
41. Dennis Gamaya Bank Officer
Monetary Authority of Singapore
42. Jacqueline Loh Deputy Managing Director
43. Foo Suan Yong Deputy Director
34th SEACEN BOG Minutes Page 18 of 27
Central Bank of Sri Lanka
44. P Nandalal Weerasinghe Deputy Governor
45. Kalyanee Gunatilake Director
46. Rupasingha AS Gunaratne Director
47. Chandranath Amarasekara Deputy Director
48. Harischandra PK Gedara Deputy Director
Central Bank, Chinese Taipei
49. Tzung-Ta Yen
Deputy Governor
50. Tzong-Yau Lin Director General
51. Yen-Dar Den
Assistant Director General
52. Te-Ming Peng Assistant Director General
Bank of Thailand
53. Prasarn Trairatvorakul Governor
54. Alisara Mahasandana Executive Director
55. Suchada Dejtrakul Division Chief
34th SEACEN BOG Minutes Page 19 of 27
State Bank of Vietnam
56. Nguyen Toan Thang Deputy Governor
57. Nguyen Thi Hoa Principal Official
58. Hoang Thi Phuong Hahn Deputy Director General
59. Dao Xuan Deputy Director General
60. Le Thai Nam Deputy Director General
The SEACEN Centre
61. Hookyu Rhu Executive Director
62. Dongkoo Chang Director
63. Noppadol Buranathanung Director
64. Michael Zamorski
Adviser
65. Hans Genberg Adviser
66. Brian Nunis Deputy Director
67. Choon Seng Lim, Vincent
Senior Economist
68. Leng Choo Ong, Vivien Manager
Attachment 2
34th SEACEN BOG Minutes Page 20 of 27
STF Activities during Financial Year 2014 (1 January to 31 December 2014)
1. The Fund’s average portfolio yield increased by 12 basis points to 4.45% as at end-
September 2014, compared with 4.33% as at end-December 2013. This was due to a
higher reinvestment rate and lower cash holdings.
2. For the nine-month period ending 30 September 2014, a temporary deficit of
RM2,391 was recorded given the lumpy and front-loaded expenditure against the income
received during the period. However, with the expected receipt of contribution from the
SEACEN Centre derived from the course fees paid by non-members attending courses and
the investment income in the final quarter of 2014, the STF is projected to record a surplus of
RM66,324 at the end of 2014. With this, the size of the STF is expected to increase
marginally to RM3.84 million for the financial year ending 31 December 2014 (end-2013:
RM3.78 million).
3. On the STF scholarships, 31 scholarships have been disbursed, while the remaining
one scholarship will be provided by the end of November 2014.
Proposed Operating Plan for Financial Year 2015(1 January to 31 December 2015)
4. The Board of Trustees approved the Operating Plan for the Financial Year 2015.
5. On the investment strategies, the following have been agreed upon:
For 2015, the Fund is expected to maintain low cash holdings in order to
maximise investments and enhance returns;
RM400,000 will be targeted for reinvestment inmedium-tenor (5-10 years)
bonds at atargeted average investment yield of 4.2%; and
The remaining cash holdings will continue to be placed in short-term deposits
and forthe disbursement of scholarships.
6. On the STF scholarships, the Trustees have agreed for a total of 32 scholarships to
be distributed during 2015. This is based on the STF action plans which were approved in
2012, namely to utilise 80% of the STF investment income in addition to using the course
fees derived from non-SEACEN members. The maximum value of each STF scholarship is
USD2,200.
34th SEACEN BOG Minutes Page 21 of 27
7. Four member central banks, namely the National Bank of Cambodia, Bank of the
Lao PDR, Central Bank of Myanmar and Nepal Rastra Bank, will be eligible for the
scholarships. The guiding principle for the specific allocation of scholarships is for the total
number of scholarships to be distributed equitably. Therefore, eight STF scholarships are
awarded to each eligible central bank. The eligibility is based on the World Bank’s income
threshold of USD1,215 for financial year 2015. Also, eligibility has been considered based
on allowing an STF scholarship recipient central bank to graduate from the STF resources
when its economy consistently registers income levels that are higher than the World Bank’s
income threshold for three consecutive years.
8. In line with the above, the State Bank of Vietnam will not receive STF scholarships
in 2015 given that its economy has consistently registered a GNI per capita higher than the
World Bank’s income threshold for three consecutive years.
9. The summary on the investment strategiesand the distribution of the STF
scholarshipsissubmitted for the information of the Board of Governors.
STF Secretariat SEACEN Trust Fund 21 November 2014
Attachment 3
SUMMARY OF APPROVED PROGRAMS FOR FINANCIAL YEAR (FY) 2015 JANUARY – DECEMBER 2015
A. LEARNING PROGRAMS
I. MACROECONOMIC & MONETARY POLICY MANAGEMENT (MMPM)
Code Title Proposed Dates Proposed Host Venue
MP1 SEACEN Course on Analytics of Macroeconomic and Monetary Policy Management
12 – 24 April Autoriti Monetari Brunei Darussalam
Brunei
MP2 SEACEN Foundational Course on Econometric Modeling and Forecasting
11 – 16 January National Bank of Cambodia
Cambodia
MP3 SEACEN Intermediate Course on Econometric Modeling and Forecasting
27 September – 2 October Bangko Sentral ng Pilipinas
Philippines
MP4 SEACEN Course on Monetary Policy Transmission Mechanisms: Theory and Empirical Assessment
23 – 28 August Bank Indonesia Indonesia
MP5 SEACEN Course on External Sector Issues
18 – 30 October Central Bank of Sri Lanka Sri Lanka
MP6 SEACEN Course on Market Intelligence Primer for Policy Making
7 – 12 June Bank of Mongolia Mongolia
MP7 SEACEN Course on Coordination of Monetary and Macro-prudential Policies for Macroeconomic and Financial Stability (Signature Program)
6 - 11 December SEACEN Sasana Kijang, Kuala Lumpur
II. FINANCIAL STABILITY AND SUPERVISION (FSS)
Code Title Proposed Dates Proposed Host Venue
FS1 SEACEN Course on Bank Examiner Foundational Skills Development 1 – 13 March SEACEN Sasana Kijang, Kuala Lumpur
FS2 SEACEN Intermediate Course on Bank Examination
22 November – 2 December
SEACEN Sasana Kijang, Kuala Lumpur
FS3 SEACEN Course on System Stress Testing in Supervision and Risk Management
16 – 19 March Bank of Thailand Thailand
FS4 SEACEN Course on Recovery and Resolution Planning for Weak Banks
19 – 24 April National Bank of Cambodia
Cambodia
FS5 SEACEN Course on Enterprise Wide Risk Management of Banks
3 - 8 May Bank Indonesia Indonesia
FS6 SEACEN Seminar on Liquidity Risk Management and Supervision
1 – 6 November Central Bank, Chinese Taipei
Chinese Taipei
FS7 2nd SEACEN Cyber Security Summit (Signature Program)
27 – 28 July SEACEN Sasana Kijang, Kuala Lumpur
FS8 SEACEN Course on Cross Border Risk-Based Supervision
18 – 23 October Nepal Rastra Bank Nepal
FS9 SEACEN Course on Macro-prudential Policy Implementation (Signature Program)
20 - 25 September Bank of Korea Korea
III. PAYMENT AND SETTLEMENT SYSTEMS (PSS)
Code Title Proposed Dates Proposed Host Venue
PS1 10th SEACEN Intermediate Course on Payment and Settlement Systems for Emerging Economies
26 – 30 April Monetary Authority of Singapore
Singapore
PS2 SEACEN Course on Oversight of Payment and Settlement Systems
23 – 27 March State Bank of Vietnam Vietnam
PS3 SEACEN Advanced Course on Payment and Settlement Systems for Emerging Economies (Signature Program) (back-to-back with Directors of Payment and Settlement Systems Meeting)
24 – 29 May Reserve Bank of India India
IV. LEADERSHIP AND GOVERNANCE (LDG)
Code Title Proposed Dates Proposed Host Venue
LDG1 9th SEACEN Intermediate Leadership Course
10 - 15 May Bank of Korea Korea
LDG2 9th SEACEN Advanced Leadership Course (Signature Program)
14 – 19 June SEACEN Sasana Kijang, Kuala Lumpur
LDG3 SEACEN Seminar on Central Bank Governance (Signature Program) - rescheduled from FY 2014
11 – 13 February Bank Indonesia Indonesia
LDG4 SEACEN Seminar on Risk Management for Central Bank (Signature Program)
8 - 13 November SEACEN Sasana Kijang, Kuala Lumpur
B. APPROVED RESEARCH PROGRAMS
COLLABORATIVE RESEARCH Proposed Dates Proposed Host Venue
Code Topic
R1 Monetary Policy Transmission in the SEACEN Economies (2 workshops)
March and August SEACEN Malaysia
R2 Research Project for Capital Flows Research Group under the SEACEN Expert Groups on Capital Flows (SEG) (1~2 workshops)
April and October SEACEN (tbc) tbc
R3 Customized Research Project (1 workshop) March/April SEACEN Sasana Kijang, Kuala Lumpur
I. HIGH-LEVEL SEMINARS Proposed Dates Proposed Host Venue
Code Topic
S1 Harmonizing Micro-prudential Policies and Macro-prudential Supervision
October Bank Indonesia Indonesia
S2 Just-in-Time (held back-to-back with DORT Meeting)
19 – 21 August Reserve Bank of Fiji Fiji
S3 11th SEG High-Level Seminar( held back-to-back with 11th SEG Meeting)
29 - 31 July SEACEN (tbc) Malaysia
S4 High-Level Seminars (held back-to-back with EXCO meeting) 28 – 30 September Bank of Papua New Guinea
Papua New Guinea
S5 High-Level Seminars (held back-to-back with BOG meeting)
(tbc) To be determined To be determined
n.a. Joint Annual Conference by SEACEN and CEMLA (Put on hold until further notice)
n.a. n.a. n.a.
II. ONLINE FORUM
Code Topic
F1 2 Research online forums with SEG
F2 3 – 4 SEACEN Supervisory Discussion Room (SSDR)
III. DISSEMINATION AND PUBLICATIONS
Code Types
1 3 Publications from 2 High-Level Seminars/Conferences and Research Project
2 3-5 Working Papers
3 2 SEG Reports
4 3 Background Papers for High-level Meetings (subject to request)
5 2 Volumes of SEACEN Financial Stability Journal
6 2 case studies/ notes
C. MEETING PROGRAMS (back-to-back with High-Level Seminars)
Code Title Proposed Dates Proposed Host Venue
M1 28th Meeting of Directors of Supervision
5 – 7 Aug Bank of Thailand Thailand
M2 14th Meeting of SEACEN Directors of Payment and Settlement Systems
27 – 29 May Reserve Bank of India
India
M3 37th Meeting of SEACEN Directors of Research and Training (back-to-back with DOR and DOT Seminars)
19 – 21 August
Reserve Bank of Fiji Fiji
M4 6th Meeting of Deputy Governors in charge of Financial Stability and Banking Supervision (back-to-back with High-Level Seminar on Financial Stability)
10 – 12 September Nepal Rastra Bank Nepal
M5 14th Meeting of SEACEN Executive Committee (back-to-back with high-level seminar)
1 – 3 October (tbc) Bank of Papua New Guinea
Papua New Guinea
M6 51st SEACEN Governors’ Conference/High-Level Seminar and 34th Meeting of SEACEN Board of Governors
25 – 27 November To be determined To be determined
M7 11th SEG Meeting (back-to-back with 11th High Level Seminar and workshop)
29 – 31 July SEACEN (tbc) Malaysia