F INANCIAL S ERVICES V OLUNTEER C ORPS FSVC OVERVIEW
To help build the sound financial infrastructure required by countries seeking to develop transparent, market-oriented economies
A functioning banking system is a prerequisite for a successful market economy
A functioning banking system is critical to mobilize domestic savings, to attract foreign investment, and to facilitate foreign trade
FSVC helps build the banking sectors that are essential to maximize potential economic growth and to create jobs
Who We Are
Private-public sector partnership
Provider of unbiased, expert advice from active financial professionals serving as volunteers
Able to give timely input on specialized issues, generally through short-term technical assistance that is sequenced whenever possible to comprise longer-term programs
FSVC is uniquely positioned to help build financial systems around the world
Founded in 1990 by John Whitehead and Cyrus Vance at request of President George H.W. Bush
FSVC’s Board is currently co-chaired by Mr. Whitehead and Paul Volcker
Has engaged over 6,000 experts from the financial, legal and regulatory communities on over 1,300 missions
Has reached over 30,000 counterparts in 30 countries
Has delivered over $160 million in technical assistance by leveraging the pro-bono service of volunteers -- more than triple the amount of U.S. Government grants to FSVC
The Need for FSVC
FSVC is uniquely positioned to help countries build the financial infrastructure that is essential for a functioning market economy.
Market economies, in turn, are essential to create economic opportunity and to combat poverty in the developing world.
The public sector lacks the experience and the private sector lacks the immediate incentives to carry out this work.
The need for this work is more important than ever.
The Need for FSVC (cont’d)
Building market economies is as much a security issue as an economic one.
Poverty and hopelessness create a breeding ground where terrorist groups can gain support. Building financial sector infrastructure that enables market economies to flourish helps drain this “swamp.”
It has become clear that the development of financial transparency is intimately linked to the prevention of terrorism.
During 2004, FSVC delivered 154 projects and programs in 20 countries
Current offices in 10 countries:
-Bosnia and Herzegovina
Full-time staff of 61:
-33 in New York and Washington
Trained over 1,300 Russian bankers in anti-money laundering procedures
Provided U.S. stock exchange experts to rebuild the depositary/settlement system for Iraq stock exchange
Run annual four- to six-week internship programs in the United States on strategic bank management for senior Russian, Ukrainian, Kazakh and Indonesian commercial bankers, with current focus on small- and medium-sized enterprise (SME) lending
Expert advice to Afghan government on currency conversion in 2003
Convened series of small conferences among American and Russian experts to explore financial, economic and strategic issues facing Russia as it joins the global economy (sponsored by Carnegie Corporation of New York)
Case Study: The Russian Paradox
Notwithstanding the perpetual state of financial turmoil in Russia since 1990, FSVC has succeeded in making substantial contributions to the development of that country’s financial system. How?
Trained thousands of commercial bankers, regulators and parliamentarians in the skills needed for a modern banking system
Strengthened capacity in such key technical areas as payment systems, anti-money laundering, bank supervision, and bank restructuring
The institutions strengthened and the skills imparted are lasting and have withstood the vicissitudes of Russia’s reform process
Middle East Partnership Initiative (MEPI)
During 2003 and 2004, FSVC conducted six financial sector assessments in the North African/Middle East region at the request of the U.S. Department of State’s Bureau of Near Eastern Affairs.
FSVC received a $4 million grant from MEPI FY’03 program funds and a $4 million grant from MEPI FY’04 program funds for financial sector technical assistance work in Morocco, Egypt, Jordan and elsewhere in the region.
Initial FSVC program activity:
In Egypt , FSVC worked with the new Governor and Deputy Governor of the Central Bank to establish a new Monetary Policy Unit. In September, FSVC sent a senior level team of experts to work with the Central Bank of Egypt to address non-performing loan portfolios in state owned banks as part of an effort to restructure the banking sector. FSVC recently completed a project with an Egyptian commercial bank assisting in the development of a strategic plan for small- and medium-sized enterprise (SME) lending.
In Morocco , FSVC worked with commercial banks and the Central Bank of Morocco to strengthen risk management practices in light of new regulations permitting derivatives trading. FSVC began a program to support the central bank’s efforts to develop policies and procedures to address problem banks. FSVC has also started projects that will help overcome obstacles that hinder commercial bank lending to the SME sector.
In Jordan , at the request of the Jordanian Deposit Insurance Corporation (JDIC), FSVC provided expert commentary on three banking laws and developed a memorandum of understanding between the JDIC and the Central Bank of Jordan to help clarify supervisory roles and work processes. FSVC recently conducted a project with the JDIC focused on liquidation and receivership, assessments and collection policies, research and bank supervision. In early June, FSVC conducted a roundtable discussion with senior commercial bankers to assess impediments to broad-scale SME lending which is the first of several related projects.
Examples of Organizations that Provide Volunteers
American Bankers Association
Bank of America
Goldman, Sachs & Co.
J.P. Morgan Chase
Kansas Bankers Association
New York Stock Exchange
Simpson Thacher & Bartlett
Sullivan & Cromwell
Federal Reserve System
FDIC, OCC, SEC and other regulatory bodies
Over 300 corporations and organizations have provided FSVC with volunteers
The Importance of FSVC’s Work: The Views of Our Co-Chairmen
“ Development will not occur in any country that lacks appropriate financial institutions, and their presence requires a framework of basic financial architecture. FSVC can be of enormous value to countries throughout the developing world that are working to get their financial houses in order.”
John C. Whitehead
“ FSVC’s unique technical assistance work is extremely helpful in supporting broader efforts to build a stronger, more market-oriented financial system.”
Paul A. Volcker
John C. Whitehead Co-Chairman
Paul A. Volcker
John L. Walker President J. Andrew Spindler Executive Director For more information, please contact: J. Andrew Spindler Executive Director Financial Services Volunteer Corps 800 Third Avenue, 11 th Floor New York, NY 10022, USA Board of Directors and Executive Director Telephone: +1-212-771-1412 Fax: +1-212-421-2162 [email_address] www.fsvc.org