FINANCIAL SERVICES VOLUNTEER CORPS

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FINANCIAL SERVICES VOLUNTEER CORPS

• FSVC OVERVIEW

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FSVCs Mission

• 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

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Who We Are

• Private-public sector partnership
• Not-for-profit organization
• 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

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Brief History

• Founded in 1990 by John Whitehead and Cyrus Vance
  at request of President George H.W. Bush
• FSVCs 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

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Core Competencies

• Commercial banking
• Central banking
• Capital markets
• Banking/financial legislation
• Anti-money laundering
• Payment systems
• Pension systems
• Corporate governance

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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.

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The Need for FSVC(contd)

• 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.

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Current Operations

• During 2004, FSVC delivered 154 projects and
  programs in 20 countries
• Current offices in 10 countries
• -Albania
• -Bosnia and Herzegovina
• -Croatia
• -Egypt
• -Indonesia
• -Jordan
• -Macedonia
• -Morocco
• -Russia
• -United States
• Full-time staff of 61
• -33 in New York and Washington
• -28 Overseas

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Recent Projects

• 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)

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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 countrys financial system.
  How?
• FSVC has
• 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 Russias reform process

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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 States Bureau of Near Eastern
  Affairs.
• FSVC received a 4 million grant from MEPI FY03
  program funds and a 4 million grant from MEPI
  FY04 program funds for financial sector
  technical assistance work in Morocco, Egypt,
  Jordan and elsewhere in the region.

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MEPI (continued)

• 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.
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• 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 banks 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.

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Examples of Organizations that Provide Volunteers

• American Bankers Association
• Bank of America
• Citigroup
• General Electric
• Goldman, Sachs Co.
• J.P. Morgan Chase
• Kansas Bankers Association
• Morgan Stanley
• 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
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The Importance of FSVCs WorkThe 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
• FSVCs unique technical assistance work is
  extremely helpful in supporting broader efforts
  to build a stronger, more market-oriented
  financial system.
• Paul A. Volcker

APPENDICES
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Board of Directors and Executive Director
John L. Walker
President
John C. Whitehead Co-Chairman
J. Andrew Spindler Executive Director
Paul A. Volcker
Co-Chairman
For more information, please contact J. Andrew
Spindler Executive Director Financial Services
Volunteer Corps 800 Third Avenue, 11th Floor New
York, NY 10022, USA
Telephone [phone] Fax
1-212-421-2162 jspindler_at_fsvc.org www.fsvc.org