Cooperation Urged in Training Central Europe Bank Examiners

A group of international bankers said Tuesday that industrialized countries must help train examiners in central Europe if they expect these countries to operate safe-and-sound regulatory systems.

The Institute of International Finance, which represents 255 banks worldwide, urged the United States and countries in Western Europe to establish a centralized training facility for examiners from former East Bloc countries such as Poland, Hungary, and the Czech Republic. They also should institute exchange programs for examiners from central Europe.

"A true partnership must be forged between bank regulators," said John Haseltine, the institute's deputy managing director.

The World Bank or International Monetary Fund could foot the bill for much of the training, he added.

The remarks came as the group introduced a report endorsing the Basel Committee's recently proposed core principles for banking supervision, which outline model licensing, examination, and risk-management procedures.

The group's report concentrated solely on central Europe. Reports later this summer will look at whether the principles will work for banks in Asia and South America.

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