Call for Papers: Bank Regulation and Supervision Practices in South Asia

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Commercial banks play a crucial role in the economic growth of a nation, particularly in developing nations. Therefore, to sustain depositors’ trust and the stability of the banking system, central banking authorities must effectively regulate and supervise the banking system and particularly the financial system in general. The robust regulatory framework reduces moral hazards and excessive risk-taking by banks and thereby enhances surveillance, reduces speculation, and promotes transparency in the banking sector. These views thus emphasize the significance of an optimal approach when designing and enforcing regulations.

In recent years, the rapid proliferation of shadow banking and non-bank financial institutions (NBFCs), digital banking units, e-banking, and Fintech companies entering the banking business has increased complexities, along with commitment to achieve sustainability and compliance to climate-related financial disclosures. Banks worldwide, and in the South Asia region, must also navigate new challenges and exposure to IT and climate risks. Policy makers and regulators are therefore working to rejuvenate regulatory reforms to strengthen the resilience and stability of financial systems across regions against future crises.

The Asian Development Bank Institute (ADBI) plans a deliberation on "Bank Regulation and Supervision Practices in South Asia," among central bankers, think tanks, officials, and academic experts in South Asia. The conference will focus its high-level discussions on the regulatory and supervisory approaches for banks, including deposit insurance, capital regulations, macroprudential and microprudential norms, supervisory powers, payment regulations, sustainability frameworks, among others, the progression of these regulations, and the emerging regulatory requirements essential for modernized functions and measures to mitigate risks, like climate and IT, in the SAARC region. The two-day conference is planned to be held in Kathmandu, Nepal during September-October 2024.

ADBI invites expression of interest from researchers working in this area to author a country-specific study highlighting the discussions on several key regulatory areas including:

  • Deposit Protection Schemes, Capital and Macroprudential Regulations
  • Climate Change, Sustainable Banking Practices, and the Role of Central Banks
  • Digitalization and Payments and Settlements Regulations
  • Governance in Banks with Emphasis on Risk and Audit Functions
  • Power and Independence of Supervisors

Objectives

  • Assess the adequacy of existing bank regulations and supervision practices in the South Asia region.
  • Explore strategies for enhancing deposit insurance, prudential norms, capital regulations, risk surveillance, supervisory independence, external regulations, and environmental and social compliance.
  • Recommend appropriate regulatory and supervisory measures to mitigate emerging risks associated with digitalization, innovations, and climate change.
  • Contribute to the development of robust regulatory frameworks that enhance the resilience and stability of banking systems in the SAARC region from future crises.
  • Facilitate dialogue and exchange among policy makers to foster collaboration and knowledge sharing in banking regulation and supervision.

Target Participants

  • Central bank officials from ADB developing member countries in the South Asia region.
  • Experts from international organizations, academia, research institutes, and practitioners in bank regulation and supervision.

Submission Guidelines

Interested researchers are invited to submit a full paper or extended abstract of up to 2,000 words, covering background, objective, methodology and data, and expected outcomes. All submission should be received online at this link by 10 August 2024 (Friday), 5:00 pm (Tokyo Time). Early submission is encouraged.

Selected authors will be invited to join roundtable discussion and conference with an expert panel across ADB’s South Asian member countries. In addition, selected authors will be invited to contribute a country-specific chapter in an edited book on "Bank Regulation and Supervision Practices in South Asia".

Contacts

All inquiries may be directed to Rachita Gulati, Research Fellow, ADBI at [email protected]