Pilika W. Palik

The FSM Banking Board’s revolving banking supervision roles include off-site monitoring and analysis; follow up on-site examination visits; and other corporate activities.

The Banking Board bases its present supervisory activities on a system whereby detailed information on the activities of the banking institutions are reported regularly throughout the year. These reports are analyzed to ensure that the activities of the banks comply with the terms of their licenses and other specified prudential standards and requirements. These reports are also analyzed for any significant changes in the institutions’ financial conditions.

My current responsibilities include leading the examination team as Examiner in Charge in their follow up on-site examination visits to the licensed commercial banks in the FSM. In on-site examinations we confirm compliance with FSM banking laws and other prudential requirements and also assess the safety and soundness of banks. My other responsibilities include training other Staff in off-site analysis and on-site examination assessments. I also assist in other corporate activities and attend to meetings and regional workshops relating to banking supervision.

The following list some of my current responsibilities and other duties assigned:

• Improving and developing needed improvement to current call report forms, related explanatory notes for the banking system, and examination manuals for on-site review.
• Assessing and scoping risk areas to examine.
• Leading and conducting on-site reviews.
• Presenting examination findings and corrective measures to Bank Management.
• Writing examination reports.
• Supervise and oversee the work of other technical staff, including but not limited to monthly, quarterly and annual analysis of individual bank and sector-wide financial returns, collection of financial sector statistics and information, in-depth and detailed review of ban documents, records, as well as general observations of bank operations.
• Assist in the hiring, training and transition of technical staff and administrative/clerical staff into their new roles.
• Assist in the administration and implementation of the banking laws, other bank-related laws, regulations, policies, approval and enforcement.
• Attend Board meetings and present reports on bank activities and financial conditions, and contribute to both technical and high-level discussions.
• Investigate complaints against any bank involving violations of banking laws,regulations and policies.
• Conducts research and studies on problems involving bank operations;
• Coordinate state visits with State leadership and assist in providing public educational programs with stakeholders and receiving comments and concerns regarding financial sector supervision and regulation.
• Perform other duties as assigned, including the following:

- Assist in the annual budget process for our independent agency.

- Maintain and update office website.

- Acting as Banking Commissioner when the Banking Commissioner is on travel.

- Draft communications on behalf of the Commissioner and the Board.

- Meet with bank executives, management and personnel on behalf of the Commissioner.

- Attend US Federal Deposit Insurance Corporation (FDIC) Examination Team on-site visit meetings and exam review.

- Attend the President’s cabinet meetings on behalf of the Commissioner and update on the office’s undertakings.

- Represent the Commissioner and the Board to meeting and conferences.

- Attend and contribute to assigned Committees by the President for Christmas functions and other government functions and important activities.

- Receive courtesy visits and meet with other agencies on matters of mutual interests including the FDIC, IMF, World Bank, US Embassy, Bank Branch Headquarters, etc.

- Meet with Banks and discuss with FDIC on appropriate strategies to minimize and mitigate impacts of the COVID-19 crisis on the performance, safety, soundness and stability of the banking system.

The FSM Banking Board’s revolving banking supervision roles include off-site monitoring and analysis; follow up on-site examination visits; and other corporate activities. The licensed commercial banks in the FSM are required to submit quarterly and monthly Call Reports to the Board. My major responsibilities included the analysis, monitoring and reporting of the financial statements of the banks to the regulatory Board.

The technical Staff of the Board conduct its on-site examinations on a semi-annual basis and I was also trained to join the examination team.

My other responsibilities included monthly submissions of FSM statistical reports to the International Monetary Fund. I also assisted in the conducting of the Board’s quarterly meetings, took minutes of their meetings, and contribute to the discussions that involve policy-decision makings. Other duties included assisting in developing and updating the quarterly written report on the condition of the FSM banking system to the President and Speaker of the country.

The following list some responsibilities as Financial Analyst:

• Reviewed and analyzed returns and reports submitted by the banking financial institutions and ascertain those institutions’ conditions and compliance with laws and regulations as well as ascertaining the accuracy of periodic reports being compiled for the government and others.
• Drafted new form/formats needed in order to obtain information from the financial institutions on a regular or special basis.
• Monitored timely receipt of periodic returns, accuracy of their contents and follow-up on discrepancies of non-compliance by each financial institution, identified problems needed remedial actions to correct indicated weaknesses, updates database for all financial institutions on a monthly, quarterly and yearly basis;
• Prepared narrative analysis for each financial institution and the consolidated system for the Banking Commissioner on a periodic basis, highlighting the safety and soundness, the financial trends, as well as stressing problem areas and recommended corrective measures.
• Developed and updated quarterly written report on the condition of FSM banking system to the President and Speaker of the country.
• Supported the on-site examination team on its periodic review of each financial institution.
• Initiated and assisted on the annual budget process for our independent agency.
• Took minutes of Board meetings.
• Attended Board visits to the State and present on the banking financial condition of the banking system.
• Performed other duties as assigned.

After six years of attending the University of Hawaii at Hilo, Hawaii, I returned to Kosrae, Federated States of Micronesia and was hired as an Accountant at the JBI Enterprises. Some of my major duties and responsibilities included the following: (1) maintenance/updating of all financial records in the Enterprise; (2) responsible for initiating the inward shipments of all the Enterprise’s goods and products that were ordered from a number of overseas suppliers. A robust periodic physical inventory of all “shelves items” and warehouse stocks was done; (3) responsible for the maintenance and updating of the bank accounts. This area of responsibility included the records of all the bank’s deposits/transactions and the monthly reconciliation work; and (4) responsible for the quarterly preparations and filing of the Enterprise’s business gross receipt tax, the withholding salary taxes to the appropriate national and state government offices.

Along with the above, I was also consulted by proprietor/management when hiring of new staff would be made. Additionally, I took part in the strategic plan in the expansion of the Enterprise when such proposal was tabled for consideration.