Banca d’Italia- مصرف لبنان Cooperation & Assistance

Dr. Nasser Saidi

Banque du Liban

June 2003

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

2

Background & Objectives: the ‘Barcelona

Process’ and Beyond

Historic links and common values have

established proximity and interdependence

Regional conflicts, uncertainty & instability:

requires remedial, intelligent, purposeful action

Create & Develop Institutional links

Barcelona process:

Need to revise approach & instruments

Need to develop a monetary, payments, banking

& financial market ‘leg’

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

3

Background & Objectives: develop EuroMed

Association Agreements

‘EuroMed Association Agreements:

Main economic focus is on free trade area &

commercial policy

Need to widen scope to encompass: investment,

money and payments, banking & financial

markets

EU-Lebanon AA : approved 2 Dec 2002 Lebanese

Parliament, 15 Jan 2003 EU Parliament

Interim TA: free trade by 12 years of entry into

force

Italy is Lebanon’s main trade partner

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

4

Background & Objectives: Role of Monetary

Authorities

Monetary authorities should be pro-active

Monetary authorities can be catalysts

Monetary authorities have special role and

responsibility to:

Consult & cooperate in their areas of authority &

competence

Act to ensure banking and financial stability

Promote Money & Financial market integration

Facilitate trade & investment flows

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

5

Cooperation & Consultation: Areas for

Cooperation

Monetary Policies-Exchange Rate Systems

Macroeconomic Policies & Financial Systems

and developments

Payment System Integration

Capital Market Development and Integration

Legal and Regulatory Harmonization

Statistics

Information Technology

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

6

Cooperation & Consultation: Proposed Tools

Observatories, Seminars and Conferences

Set-up joint Working Groups and Commissions

Technical Assistance programs:

Bilateral

Multi-lateral

Set-up a EuroMed Central Bank Training Institute

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

7

Central Bank Working Groups & Commissions

Objective: bridge “divides”, create links and foster

spirit of partnership

Bilateral & Multi-lateral

Hosted on both shores of the Mediterranean

Organize regular seminars & workshops

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

8

WG-I: Monetary and Macroeconomic Policies

Objectives:

Exchange views & information on monetary,

exchange rate and macroeconomic policies

Develop basis for monetary policy coordination

Understand and measure links (trade in goods &

services, investment, factor mobility, money &

financial markets), and channels of transmission

and contagion effects

Deliverables:

Produce “Blue Books” for the Mediterranean

countries

Set-up a Monetary/Macroeconomic Observatory

Develop a EuroMed-System

Papers and Policy Briefs

Empirical work: Bilateral & Multilateral Macro-

econometric models

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

9

WG-II: Payment Systems

Objectives:

Exchange information & expertise on payment systems & operations

Integrate & create a common payments network, expanding the scope & penetration of the Euro

Create conditions enabling Mediterranean Partner countries to ‘leapfrog’: e-Payments

Deliverables:

Integrate Med Partners into Eurosystem: set-up “MedPayments” to facilitate trade & investment

Participate/observe in European Payment Council (EPC)

e-Payment initiatives for retail payments

Extend TARGET II to the Mediterranean Partners, TARGETMED system

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

10

WG-III: Financial Markets

Objectives:

Promote the development of local capital markets in

the Mediterranean countries

Foster banking integration

Facilitate access to EU capital markets

Deliverables:

Technical assistance for the set-up of local stock

exchanges and capital market authorities

Freedom of access to banking markets

Access of Med governments and corporations to

EU financial markets; listing of bonds & equities

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

11

WG-IV: Legal and Regulatory Issues

Objectives:

Modernisation of Mediterranean money, banking and financial laws, adoption of modern financial infrastructures

Harmonization of banking and financial laws, regulations and standards in a structured and systematic manner

Cooperation in banking & financial supervision

Deliverables:

Survey money & banking laws & regulations: produce a series of “Legal & Regulatory Green Books”

Creation of a Euro-Mediterranean Group of Bank Supervisory Authorities

Assist in developing legal & regulatory infrastructure for eBanking, ePayments and eFinancial Services

Assist in improving accounting, auditing, supervision and regulation of financial services and financial monitoring in accord with international codes and standards

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

12

WG-V: Statistics

Objectives:

Exchange and harmonize statistics and

information on developments in the monetary,

payments, banking and financial sector

Deliverables

Produce a Handbook and regular Money &

Banking Statistics reports

Develop quality, reliable payment statistics

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

13

WG-VI: IT

Objectives:

Harmonize & integrate ICT systems to support monetary,

payments and financial integration

Provide security and confidentiality for, data, information,

transactions and e-payments

Achieve interconnection & interoperability of standards,

telematic networks and services (cf. Art. 53 of AA)

Deliverables

Develop and set common standards to allow straight-

through-processing and security

Participate/observe in electronic Payment System

Observatory (ePSO)

Link-up databases and networks

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

14

Banca d’Italia and the Banque du Liban: build

a Partnership & ‘Association Agreement’

BDL is looking to develop a partnership with

the Banca d’Italia in the proposed areas of

central bank cooperation

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

15

Banca d’Italia and the Banque du Liban: build

a Partnership & ‘Association Agreement’

Priorities identified:

Feasibility & Road Map for SeBIL prepared

Technical cooperation in the implementation of :

• Secure IT Infrastructure: request for proposals

available

• Applications

• BDL Business Process re-engineering & MIS

Develop legal & regulatory infrastructure to

support SeBIL

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

16

Banca d’Italia and the Banque du Liban: build

a Partnership & ‘Association Agreement’

Priorities identified:

Government & Public Utilities Payments

Technical assistance in developing ePayments

Lebanon as a potential pilot project for

TARGETMED

Lebanon will prepare first Med Blue Book

Set-up WG and technical assistance missions

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

17

Banca d’Italia مصرف لبنان

Banque du Liban June 2003

Dr. Nasser Saidi

EU CB Cooperation

18

Grazie شكرا

Banca d’Italiaمصرف لبنان