Financial Reporting, Accountability and Independence in Central Banking

Why Attend

“Do central banks have the financial resources they need to fulfil their mandate?” Once an abstract, academic question, this became front page news in March 2020 following official sector responses to Covid-19. The Covid pandemic has demonstrated that even if the crisis is beyond the narrow financial markets mandate, the central bank is a first responder. For those charged with overseeing their central bank’s balance sheet, the impact of the crisis will be felt for years to come. More broadly, central bankers’ stakeholders continue to critically question long-held tenets on reporting of central bank’s performance, the justification for their balance sheet composition and ability to adopt to evolving challenges in financial market and intermediation. This course, “Financial Reporting, Accountability and Independence in Central Banking” is designed to assist central bankers with responsibilities in finance and financial reporting to effectively discharge their transparency requirements that support central bank independence. Each day will feature three hours of expert-led live content to maximise the opportunity to share and learn. The course chair will ensure participants have opportunities to network throughout the programme.

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Course Objectives

  • At the conclusion of the training, participants will be able to:
  • • Understand how to tackle the challenges in a multi-mandate environment
  • • Gain insight into the state of the art in fintech
  • • Assess best practice of accounting standards for modern central banks
  • • Analyse the optimisation of IT applications for central bank reporting
  • • Tackle the management of the audit process

Target Audience

Central Bankers only

New Dynamics Shaping Central Bank Balance Sheets

  Course introduction

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations


The reality of central banking under a multi-mandate framework

  • The key issues facing the modern central bank
  • Challenges central banks face in adapting to the new environment
  • Implications for balance sheets, contingent liabilities and shareholder relations
  • Discussion: impact of Covid-19 measures on balance sheets in participants’ home jurisdictions


Protecting policy solvency: the question of capital structures

  • Evaluating the relationship between a central bank's capital arrangements and its functions
  • Overview of models of profit and loss sharing across central banking
  • The impact of Covid-19 measures on central bank balance sheet and results
  • How can capital arrangements be improved in participants’ home institutions?


CBDCs: how will they shape central banks?

  • What are the models for CBDCs and how would they work?
  • What are the opportunities and risks for central banks and the banking system?
  • Discussion: lessons from CBDC projects?


Financial statement challenges facing central banks

  • Appropriate central bank reporting framework
  • Specific challenges in IFRS and IPSAS
  • Accounting policies to best match policy performance
  • Discussion: how financial statements can add value


Audit: a cornerstone of governance

  • How can the central bank accountants react effectively to the audit process
  • How should central bank accounts communicate with audit function
  • What criteria the auditors use to assess the appropriateness of the reporting frameworks
  • Strategies to deal with the challenges of the audit process at central banks


Central bank financial results as part of the principal-agent contract between it and the political authorities

  • Financial relationships between central banks and government
  • Central government funding of central banks
  • Loss sharing and capital adequacy
  • Financial statements as a measure of performance

Strengthening Accountability: Stakeholder Engagement and Assurance


Effective IT for central bank reporting

  • Evolution of the role of IT in central banking reporting
  • Identifying opportunities for improved process and controls
  • Examples of applications and coordination of various digital tools
  • Case study: building a resilient data storage and management framework


Understanding and managing operational and financial risk in a central bank governance framework

  • What are the key operational and financial risks a central bank face?
  • Understand the implications of risk management matrix
  • Strategies for effective co-ordination with the risk functions
  • Effective collecting of data and reporting on risks


Aligning resource use with mandates: functional reporting for a central bank

  • Reporting by function vs reporting by department: a comparison
  • Strategies for an effective functional reporting
  • Implications for transparency and interdepartmental cooperation
  • Case study: how to report the costs (and income) by function

Safeguarding Independence


Central bank profit (and loss) sharing models

  • Evaluating the relationship between a central bank's capital arrangements and its functions
  • Considerations for determining profit distribution models
  • Overview of models of profit and loss sharing across central banking
  • Considerations for future arrangements.


Oversight and accountability: an effective framework for co-operation

  • How do accountants work effectively with the board?
  • What are the needs of the board and how can they encouraged to be an effective part of financial reporting?
  • Understanding independence: how can those in financial reporting help the board maintain its independence
  • Discussion: practical examples from delegates home jurisdictions


Closing remarks and delegate action plans

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points

Implementation Workshop

Benefits of attending the Implementation Workshop:

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

This course has not been scheduled, however you can request for In-House training