Macro-prudential Policy: Implementing the Financial Stability Mandate

Why Attend

What are the financial stability implications to the banking and non-banking sector, firstly in the Covid-19 era and secondly the digitisation era? What does it take to design, implement and enforce an effective framework for a sustainable, robust and resilient ecosystem? How would a disorderly transition to a low carbon economy affect the economy and the financial system? And is the macro-prudential toolkit flexible enough to adapt to the new challenges? For those charged with managing financial stability within central banks, these are just some of the major questions they are facing when addressing systemic risks in the global financial system. A truly global crisis, Covid-19 can offer many learnings for managing financial stability. And the risks and demands do not stand still. Technology is changing not just markets but the way financial stability policy makers and experts work. Environmental, Social and Governance (ESG) is increasingly identified as an important risk factor in the rapidly changing and dynamic global financial system. Chaired by Maria Nieto, and a roster of speakers from central banks around the world, this course will address the key challenges confronting financial stability and present effective tools and frameworks to overcome them. 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:
  • • Effectively design a macro-prudential policy
  • • Create scenario based stress testing for climate financial risks
  • • Build a framework for systemic stress testing
  • • Understand how to measure their macro-prudential instruments’ effectiveness
  • • Assess insolvency procedures for corporates and sovereigns


Target Audience


Central Bankers only

Macro-prudential Policy: Navigating a Volatile Landscape

Course introduction

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

 

Macro-prudential policies: policy responses to Covid-19

  • Tips for effective coordination and calibration of macro- and micro-prudential policy
  • Implications for institutional arrangements and organisation
  • Examples of mechanisms for a continuous exchange of information for conflict resolution
  • Case study: Macro- and micro-prudential supervision in a Covid-19 era 

 

Making the most of big data and advanced analytics in macro-prudential analysis

  • Big data 
  • Big data and central banks 
  • Opportunities & risks 
  • Applications to systemic risk 

 

Climate change stress testing

  • Elements of a Climate Change Stress Test exercise
    • Objectives
    • Scenario design and narrative
    • Evaluation of financial impacts
    • Forward looking assessment: resilience, implications for business models, potential responses
  • The role of stress testing when dealing with climate-financial risks
    • Complementarity with other policy actions
    • Extensions: financial stability, insurance sector and other financial markets

 


Building an Effective Framework against Systemic Risk

 

Formulation of macro-prudential policies: implementation and governance issues

  • Key steps for the effective design of macro-prudential policy
  • Ensuring effective use of policy tools and instruments
  • Main operational and governance challenges, institutional limitations and how to overcome them
  • Discussion: formulation, implementation, and governance of macro-prudential policy in the delegates’ jurisdictions

 

The central credit register and effective calibration of macro-prudential instruments

  • Overview of central credit registers as micro- and macro-prudential tools
  • Examples of credit register data applications for detecting risk build-up and concentration
  • Tips for calibration of macro-prudential instruments and assessment of their effectiveness
  • Case study: building a new central credit register framework

 

Shadow banking and its role in the recent Covid-19 crisis

  •  Recent developments in shadow banking: some relevant statistics
  • The role of shadow banking institutions during the Covid-19 crisis
  • Is there a need to reassess the prudential regulatory approach?

Expanding the Financial Stability Toolkit

 

Monetary policy and financial stability: longevity of ‘leaning against the wind'

  • Key areas of interactions between financial stability and monetary policy
  • Overview of dilemmas associated with ‘leaning against the wind’
  • Implications for risk taking, credit and asset prices
  • Discussion: How closely should decision on macro-prudential and monetary policy be integrated?

 

Understanding the dynamics of financial stability: Financial Sector Stability Assessments

  • Conceptual underpinnings of Financial Sector Assessment Program (FSAP)
  • Discussion of a case study

 

Systemic stress-testing new tools and frameworks: is Covid-19 prompting a reassessment?

  • The evolving role of systemic stress-testing in financial stability assessment
  • Building blocks of an effective stress-testing framework
  • Opportunities and challenges for stress-testing in Corona times 
  • Discussion: is Covid-19 prompting a reassessment?

Topical Issues of Financial Stability

 

Debt restructuring in the Covid-19 era: A reassessment of insolvency procedures both for corporates and sovereigns

  • Requirements of effective corporate liquidation procedures
  • Corporate debt: Out of court vs court supervised procedures
  • Sovereign debt restructuring: recent initiatives proposed by the G-20

 

Financial stability and the evolution of global interest rates: how low for how long?

  • Causes of the secular decline in interest rates
  • Stability implications
  • Effects on Emerging Markets
  • Recent developments and risk factors
  • Possible policy responses

 

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

Step 1: Select Prefered Schedule


Date Fee (GHS)

Step 2: Choose Registration Type