Kurumba – The year 2018 will be another busy period for members of the ABA Policy Advocacy Committee as it lines up a number of activities included in its 2018 Work Program.

Approved during its March 8 meeting in Maldives held in conjunction with the ABA Planning Committee Meeting, the Committee’s Work Program for 2018 outlined its objectives (and the activities to be undertaken to achieve them) as follows:

I. Promoting Cooperation in Cyber Security Management by:

1. Identifying and undertaking joint activities among banks aimed at information sharing and raising awareness about cyber risks and at encouraging good consumer practices

2. Supporting and facilitating the activities of innovative banks in the area of cybersecurity

3. Encouraging cooperation among banks and other financial institutions, governments, and technical-operational bodies to strengthen cyber security

4. Inviting one or two member banks to present and share experiences to date on their continuing efforts for the enhancement of technology adopted and cyber security

II. Promoting cooperation in achieving the rapid adoption of new financial technologies and attaining greater understanding of its implications for, and potential impact on, the financial industry, by:

1. Engaging government leaders on fintech regulation best practices, regional harmonization, and industry development partnerships.

2. Encouraging modernization of payment and settlement systems consistent with global best practices that enable open competitive, integrated, safe, inter-operative and efficient domestic and cross-border payments

III. Promoting open standards for cross-border data flows while also promoting best practices and use of international and regional frameworks for improving data privacy, cyber security, and other data management

1. Encouraging a sharing of experiences and perspectives on how financial institutions can use technology to serve new customers, increase productivity, and reduce costs, while at the same time managing cybersecurity threats, keeping pace with today’s fast-changing technology developments, and adapting to competition from firms outside of the financial sector (e.g., inviting Tokyo Star Bank, a subsidiary of CTBC Bank in Japan, to share its new Retail Banking business model and web banking design; or inviting the Japanese Bankers Association to share its program aimed at enabling its members to rapidly adopt new financial technologies).

2. Working and sharing insights with regulatory authorities in developing a regulatory framework for cultivating the fintech development and allowing fintech players to work independently or closely together with financial institutions

IV. Promoting cooperation in Islamic Banking by:

1. Encouraging cooperation among institutions involved with supervision, planning, developing and enacting legislations, laws and regulations governing Islamic banking operations

2. Encouraging cooperation among banking units within both conventional and Islamic banking systems

3. Encouraging cooperation among Islamic banking system units and supervisory bodies within their hosting countries

4. Inviting one or two ABA member banks to share their experiences in promoting cooperation among Islamic Banking and conventional banking activities (e.g., Maybank, Hatton National Bank, Bank of Maldives, and EN Bank)

V. Promoting a greater understanding of the implications of changing regulations (Basel III End Game) by:

1. Inviting industry experts from risk management consulting firm to share their views and advices regarding the implementation challenges and preparations at the 35th ABA General Meeting and Conference

2. Exchanging views and concerns among ABA member banks over the Implementation of Basel III End Game (the newly revised Standard Approach for Credit Risk announced on December 7, 2017) or so-called Basel IV rules at the 35th ABA Policy Advocacy Committee

3. Inviting one or two ABA member banks to share their strategies and/or actions to concur the overall challenges for the implementation of Basel III/Basel IV

VI. Promoting greater understanding and sharing of the implementation results in the area of KYC/AML/CFT compliance by:

1. Encouraging a sharing of experiences among ABA member banks on how financial institutions face the cross-border challenges of KYC/AML/CFT compliance requirements and what actions are taken to execute the implementation throughout the organization

2. Inviting one or two ABA member banks to share their experiences in executing the cross-border implementation for KYC/AML/CFT compliance requirements

VII. Promoting financial literacy in the region by:

1. Helping raise awareness of the benefits of financial education

2. Encouraging learning on financial matters and making financial education initiatives available in diversified venues and settings

3. Enhancing coordination and collaboration among stakeholders through sharing of resources, experience and good practice by one or two ABA member banks

VIII. Encouraging member banks to promote institutional linkages and partnerships to make micro, small and medium enterprises (MSMEs) commercially bankable through the following measures:

1. Building partnership between local business chambers of commerce and industry associations which are representative bodies of individual MSMEs and play a vital tole in building up the MSMEs  that are their members;

2. Taking a lead role in creating linkages between MSMEs and the micro, small and medium professionals, particularly those in the areas of accounting and auditing, legal, process engineering, and marketing, among others;

3. Establishing and facilitating partnerships between value and supply chain entities and encouraging them to create, on the other side of their client profile, a workable framework on buy-back arrangements;

4. Taking a strategic initiative of repositioning and evolving financial products, services and solutions that can match the emerging financial needs of the MSME sector

5. Encouraging governments to put in place much-needed legal framework and regulatory mechanisms to facilitate the empowerment of MSMEs.

6. Inviting ABA Special Advisor on Financial Inclusion Mr. Chandula Abeywickrema to share the results of the ABA-endorsed project with the Durham University UK, on “South/Southeast Asian Business Society Models” focusing on sustainable SMEs.

ABA Chairman Mr. Daniel Wu has conveyed his appreciation to the members of the Policy Advocacy Committee for the excellent work they have done, and continue to do, in promoting the interest of ABA members and the banking sector of the region as a whole. He has also expressed his hopes that ABA members will remain supportive of ABA’s policy advocacy efforts and that they will continue to extend their cooperation to Ms. Prudence Lin and the Committee members.