Minutes of 7th SAARCFINANCE Coordinators’ Meeting
(Held on 15 March 2007 in Dhaka, Bangladesh)

The 7th SAARCFINANCE Coordinators Meeting was held on 15 March 2007 in Dhaka, Bangladesh under the Chairmanship of Mr. Habibullah Bahar, Economic Adviser, Bangladesh Bank and SAARCFINANCE Coordinator, Bangladesh. SAARCFINANCE Coordinators/their representatives from all SAARC central banks (except Afghanistan, Malpes and Sri Lanka) attended the meeting. List of agenda items and the list of participants are given in Attachment I and Attachment II respectively.

2. The Chairman welcomed the delegates and expressed his gratitude for participation in the meeting. He recalled Dr. R. K. Pattnaik, new SAARCFINANCE Coordinator of Reserve Bank of India (RBI) and thanked him for sending his representative Dr. D. P. Rath to attend the meeting. He also recalled Mr. Ayub-ul-Hasan, new SAARCFINANCE Coordinator of State Bank of Pakistan (SBP) who attended the last meeting and also thanked him for sending his representative Dr. Omar Farooq Saqib to attend the meeting. He thanked specially Ms. Shiba Devi Kafle, SAARCFINANCE Coordinator of Nepal Rastra Bank and Ms. Rinzin Lhamu, SAARCFINANCE Coordinator of Royal Monetary Authority of Bhutan for their participation in the two consecutive coordinators’ meetings organized by the Bangladesh Bank. He informed that Dr. P. N. Weerasinghe, SAARCFINANCE Coordinator of Central Bank of Sri Lanka who attended the last meeting and Ms Azeema Adam, new SAARCFINANCE Coordinator of Maldives Monetary Authority are unable to attend this meeting due to their official pre-occupations at home. He remembered the decision of the 13th SAARCFINANCE Group Meeting that coordinators meeting would be held twice a year before World Bank/IMF Annual and Spring Meetings. Accordingly, Bangladesh Bank hosted the 6th SAARCFINANCE Coordinators’ Meeting on 5 July 2006 and this meeting has been organized before handing over of SAARCFINANCE Chair from Bangladesh to India. He then put up the agenda of the meeting, which was unanimously accepted.

3. The Chairman first presented progress report on the activities of SAARCFINANCE updated up to 14 March 2007 and invited the participants for their comments on various issues. The Chairman mentioned that a good number of publications are being regularly exchanged among SAARC central banks. He informed that State Bank of Pakistan, Central Bank of Sri Lanka, Bangladesh Bank and Nepal Rastra Bank have already created SAARCFINANCE web folder at their respective central banks’ websites. Creation of SAARCFINANCE web folder by Reserve Bank of India and Royal Monetary Authority of Bhutan are under progress. Malpes would be requested to create SAARCFINANCE web folder at their website. He also informed that as per the decision of the 14th SAARCFINANCE Group Meeting held in Singapore Bangladesh Bank has published the first issue (December 2006) of the half-yearly SAARCFINANCE e-Newsletter. He also indicated that with handing over of SAARCFINANCE chair from Bangladesh to India, the next issue (June 2007) of the e-Newsletter would be published by Reserve Bank of India. The Chairman pointed out that the staff exchange program has received good responses from the SAARC central banks and he added that a total of 197 officials have visited so far under staff exchange program since its inception. He also mentioned that so far SAARCFINANCE members have conducted 12 seminars, 3 studies, one workshop and 3 Governors’ symposiums.

4.After presenting the progress report, the delegates formally discussed on the agenda of organizing the SAARCFINANCE seminars by the member countries for the current year.  Ms. Shiba of Nepal Rastra Bank informed that as per the decision made in 14th SAARCFINANCE Group Meeting, Nepal Rastra Bank is working to host a three-day long seminar on “Foreign Remittance Management” in May 2007. In order to comprehend ideas and for gathering experiences, they have requested other SAARC central banks for providing contents and resource persons for the seminar. She said that State Bank of Pakistan has already replied and made a query on the definition of foreign remittance. She clarified that the concept of remittance would be considered as the definition of the workers’ remittance as given in the 5th edition of the IMF BOP Manual. She gave some ideas which may be covered in the seminar and welcomed some other ideas from member SAARC central banks. The Chairman highly appreciated Ms. Shiba’s efforts for the upcoming seminar in Nepal and assured her that Bangladesh Bank will provide them some ideas and name of a resource person for the seminar shortly. He recalled that as per decision of 14th SAARCFIANCE Group Meeting two more seminars, one on “Payment Systems” and another on the “Implementation of BASEL-II” will be hosted this year by Central Bank of Sri Lanka and Malpes Monetary Authority respectively and said that the progress of organizing these seminars could not be discussed since delegates from Sri Lanka and Malpes were absent in the meeting.The Chairman told the meeting that he will write to the Coordinators of the Central Bank of Sri Lanka and the Malpes Monetary about the arrangement of the Seminars. He also informed the meeting that Bangladesh Bank authority is willing to host a seminar on “Corporate Governance in Banks and Financial Institutions” sometime in December 2007.

5.  Referring preparation of a technical paper by RBI on “Oil Price Hike-Implications for SAARC Countries” in January 2006, the Chairman requested the delegates to make comments on conducting an annual research project on a topic which has a high regional concern.  The representative from Pakistan Dr. Saqib opined that the topic should have regional economic and financial relevance and it could be on monetary union, foreign exchange, etc. He indicated that some countries are interested on some topics which may not be important for others. So he emphasized on selecting such a topic which will be important for all member countries. Ms. Shiba said that tourism could be a good research topic. But other delegates expressed that tourism is not directly under the purview of central bank. Finally, the delegates agreed that coordinators would cooperate and discuss further to select an annual research project.

6. Regarding idea of standardization of web pages of SAARCFINANCE in SAARC central banks’ websites, Ms. Shiba expressed that the readers would be benefited easily if every SAARC central bank could upload time series data on the same format at its website. The delegate from India Dr. Rath also emphasized on maintaining uniformity in uploading data at each member central bank website. Dr. Saqib stressed on the use of standard format i.e., General Data Dissemination System (GDDS) as designed by the IMF, instead of taking a separate initiative by the SAARCFIANCE. He informed that State Bank of Pakistan did some progress on GDDS which is mandatory for all IMF member countries. The delegates agreed that each SAARC central bank would follow GDDS format and upload GDDS data at their respective websites.

7. Dr. Saqib mentioned that under SAARCFINANCE staff exchange program, only two officials from the State Bank of Pakistan visited Central Bank of Sri Lanka. He said that there should be some sort of general guidelines to arrange a staff exchange program. The Chairman informed that staff exchange program was made on a demand driven basis. Therefore, it was agreed that all those Banks that wish to send their officer(s) to another Bank of a SAARC country under Staff Exchange Program would explicitly request from that particular Bank.

8. Regarding improvement of the current contents of the SAARCFINANCE e-Newsletter, the Chairman informed that Bangladesh Bank received two comments from State Bank of Pakistan and Central Bank of Sri Lanka so far. Accordingly, Bangladesh Bank has already revised e-Newsletter. He also informed that one of the coordinators has suggested to include names and contact details of SAARC central banks’ governors, finance secretaries and SAARCFINANCE coordinators in the e-Newsletter. But an observer from the Bangladesh Bank opined that instead of including that in the e-Newsletter it would be better to upload these separately in the SAARCFINANCE web folder. The observer cited that Bangladesh Bank has already uploaded names and contact details of its governor, finance secretary and SAARCFINANCE coordinator in the SAARCFINANCE web folder which can be revised at any time when there would be any change. The Chairman then requested the delegates to make comments on improving the current contents the SAARCFINANCE e-Newsletter. The delegates agreed that they would inform later in consultation with their respective authorities.

9. The Chairman informed that the SAARCFINANCE chair would move to India after the forthcoming 14th SAARC Summit scheduled to be held in New Delhi during 3-4 April 2007. He hinted that the formal hand over of SAARCFINANCE chair may take place in the upcoming SAARC Summit.

10. At the end, the Chairman thanked all the delegates for their lively discussion and active participation. Delegates also appreciated Bangladesh Bank for its hospitality and excellent logistic support.

11. The meeting ended with a vote of thanks from the Chair.

(Habibullah Bahar)

Economic Adviser, Bangladesh Bank
&     
SAARCFINANCE Coordinator, Bangladesh

Attachment-I

7th SAARCFINANCE Coordinators’ Meeting
15 March 2007, Dhaka, Bangladesh
List of Agenda Items:

1. Adoption of Agenda

1. Before starting main discussion of the meeting, the coordinators or delegates of   the meeting may reaffirm already agreed agenda items and they may also propose new item(s) for discussion. 

2. Review of SAARCFINANCE progress report

1. Mainly country-wise activities of SAARCFINANCE since January 2006 can be highlighted.

3. Preparation of a tentative program of SAARCFINANCE seminars/governors’ symposiums, workshops, studies etc. for the current year

1. The participants of the fourteenth SAARCFINANCE Group meeting decided to organize following Seminars/Symposiums of the Governors:
1. Foreign Remittance Management to be hosted by the Nepal Rastra Bank in May 2007;
2. Payment System to be hosted by the Central Bank of Sri Lanka sometime in 2007 and
3. Implementation of BASEL-II to be hosted by the Maldives Monetary Authority sometime in 2007.
2. Specific timing of holding the above mentioned seminars/symposiums can be determined and
3. Remaining member countries may also propose to organize any other seminars/governors’ symposiums, workshops, studies etc. for the current year.

4. Conducting a research project annually on the topic which has a high regional concern.

1. The project should comprise the representatives from all member countries and lead by the chairing central bank. The topic for the project should be finalized by the Coordinators' Meeting.
2. The chairing central bank should publish the research paper after the completion of the project (could be in the beginning of the following year).

5. Review of the status of creation of a SAARCFINANCE web folder at each SAARC central bank and standardization of the already created SAARCFINANCE web folders

1. As per decision of the 4th SAARCFINANCE Coordinators’ Meeting, State Bank of Pakistan, Central Bank of Sri Lanka, Bangladesh Bank and Nepal Rastra Bank have already created SAARCFINANCE web folders at their respective central banks’ websites.
2. Progress of others can be discussed and a discussion on standardization of contents of SAARCFINANCE web folders for maintaining uniformity can also be included.

6. Enhancing Staff Exchange Program by all SAARC countries

1. Potential problems and their probable solutions can be highlighted.

7. Reviewing and improving the current contents of the SAARCFINANCE e-Newsletter

1. As per decision of the 6th SAARCFINANCE Coordinators’ Meeting, Bangladesh Bank has already prepared the first issue (December 2006) of SAARCFINANCE e-Newsletter.
2. Since the responsibility of publishing the SAARCFINANCE e-Newsletter rests on the central bank whose Governor acts as the Chairperson in rotation, the second issue (June 2007) of the said e-Newsletter is expected to be prepared and published by the Reserve Bank of India. The contents of the existing SAARCFINANCE e-Newsletter can be further improved through discussion.

8. Discussion on the timing of changing the SAARCFINANCE Chair to Reserve Bank of India

1. Since the SAARCFINANCE Chair moves in rotation with the change of the SAARC Chair, the formal handing over of its current Chair from the Bangladesh Bank to the Reserve Bank of India can take place in the upcoming 14th SAARC Summit (New Delhi, 3-4 April 2007).

9. Any other issue(s).

Attachment-II

7th SAARCFINANCE Coordinators' Meeting
(15 March 2007 Dhaka, Bangladesh)
List of Participants

  Members/Representatives

  Observers