Vijay Srinivas Tata

1
The Case for a Strong Regulatory FrameworkThe
World Bank Principles In Asia
Vijay Srinivas Tata Chief Counsel Insolvency
Creditor Rights The World Bank
Forum on Asian Insolvency Reform V Beijing,
China April 27-28, 2006
2
How We Got Here

• 1997/98 financial crises drew attention to
• domestic and international impact of weak legal
  and institutional frameworks
• lack of understanding by market participants of
  financial system vulnerabilities
• linkages between speed of response and speed of
  economic recovery
• G7/G22/APEC/Financial Stability Forum response

3
FINANCIAL SECTOR ASSESSMENT PROGRAM and REPORTS
on STANDARDS and CODES (ROSCs) Bank-Fund
Country Work
Area of Assessment
Type (Agency Resp.)
Board Presentation
Follow-up actions
R O S C B I N D E R
IMF Board Art. IV
Country Dialogue Technical Assistance/ Lending
Operation Capacity Building/ Policy Reform
- Data Dissemination (IMF) - Fiscal
Transparency (IMF)
Stand Alone (Fund)
- Monetary and Financial Policy - Banking
Supervision (BCBS) - Insurance Supervision
(IAIS) - Security Regulation (IOSCO) -
Payment Settlement (CPSS) - Anti-Money
Laundering (IMF/WB)
FSSA
FSAP (Bank Fund)
World Bank Board CAS
FSA
- Corporate Governance (OECD) - Accounting
and Auditing (IAS/ISA) - Insolvency/Creditor
Rights (WB)
Stand Alone (Bank)
ESW
Note ROSCs Reports on the Observance of
Standards and Code FSAPFinancial Sector
Assessment Program FSSA Financial
Sector Stability Assessment FSA Financial
Sector Assessment ESW Economic
and Sector Work CAS Country Assistance
Strategy
4
Historical Overview
HISTORICAL OVERVIEW

• 1999 Task Force Working Groups (70 experts)
• 1999-2000 Vetting Process / Regional Workshops
• Asia, Central Europe/Baltics, Latin America,
  Africa Arab States
• 75 Countries 700 public/private sector
  specialists
• International Feedback through web-site
• 2001 (Apr) Board Meeting / DC Meeting
• 2001 (July) ICR ROSC Assessments / TA
• 2003-05 Principles review and revision
• International Forum on Insolvency Risk Management
  (FIRM) - 1/03
• Sustained Dialogue G-20, APEC, FAIR, FILA,
  Judges Forum, IAIR

5
Historical Overview (contd)

• 2003-05 Principles review and revision (Contd)
• UNCITRAL Legislative Guide finalized in 2005
• UNCITRAL Guide and WB Principles express the same
  standard in different formats.
• Joint effort with UNCITRAL and IMF to create
  unitary working document Revised Principles and
  ICR Standard.
• Revised document completed and posted for comment
  on WB website between December 2005 and March
  2006.
• Integrated document represents a single, unified
  standard for ICR systems.