Consulting services are required for the development of a regional framework of cooperation in terms of resolution of financial institutions and financial crisis management
Start date
Closing date
Country
USA
Sector
Business and Professional Services
IDB Project
RG-T3097 : Regional Cooperation Program for the Development of Resolution Framework for the Regional Financing CrisisImportant Notice
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Description
The consulting services include the definition of the main guidelines of the resolution framework considering three main elements:
- The definition of a coordination regime that establishes the principles and limits of the scope of action of the resolution framework (taking into account the particularities of the regulatory frameworks of each country);
- The development of specific processes and instruments for joint action, including the definition of an information exchange mechanism that helps countries in the preventive identification of situations of regional financial crisis and in the resolution of these cases when they occur;
- The definition of the structure, technical cadres and formal processes that enable the creation of a permanent coordination forum established within the scope of the resolution framework.
Likewise, the consulting services include the realization of a diagnosis and an action plan with proposals on the following issues:
- Diagnosis and analysis of vulnerabilities in the systems of identification and monitoring of banking crises in each country that require legal and regulatory changes;
- Consolidated proposal of regional exposure indicators;
- Development of mechanisms that allow early collaboration (immediate decision-making process) taking into account shocks in indicators or the increase in the risk of materializing a scenario.
To enable coordination to be more effective, consulting services also include the development of regional exposure indicators so that countries can assess the degree of exposure of national financial systems to banks and other cross-border financial institutions, and adopt strategies for adequate contingency at each level of severity of the crashes. The exchange of information mechanism will consider the integration of basic indicators of financial supervision (liquidity, capital and solvency) and indicators related to the impact of specific stress situations in specific cases of drastic change in the perception of financial and operational risk, including the of image risk (indicators of non-viability).
- The deadline for performing these services will be 7 (seven) months.
For more information, please consult the Original Publication issued by the contracting entity.
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