Background

In the wake of the global financial crisis, supervisory practices have evolved from micro-prudential supervision to the adoption of macroprudential supervision. The objective of this evolution is to identify and mitigate systemic risk. The recent turmoil in the banking sector indicates that vulnerabilities continue to linger while more risks could emerge in the future. Macroprudential supervision plays a critical role in enhancing the resilience of financial markets and maintaining financial stability because it focuses on the safety and soundness of the entire financial system.

This workshop aims to provide a good understanding of macroprudential supervision and its role in maintaining financial stability. It includes theoretical foundations, practical applications, and real-world case studies to equip participants with the necessary knowledge of the key priorities of macroprudential supervision. At the end of the course, participants will be expected to identify key issues relevant to the development of macroprudential supervision frameworks within their countries and region.

Objectives

The course aims to:

• Equip participants with a solid understanding of macroprudential supervision.
• Develop the ability to identify, monitor, and assess systemic risks within the financial system using various tools, indicators, and analytical techniques.
• Provide key concepts of designing and implementing countercyclical policies and measures.
• Enhance practical knowledge of participants on conducting stress tests to evaluate the resilience of financial institutions and the entire financial system.
• Provide understanding of the importance and implementation issues of capital and liquidity buffers.

Course Content

The course covers:

• Systemic risk identification and monitoring.
• Countercyclical measures.
• Stress testing design and execution.
• Capital and liquidity buffers.
• Financial interconnectedness and contagion risk measures.
• The development and implementation of macroprudential tools to mitigate systemic risk.
• Inter-agency cooperation.

Target Group

This course targets middle-level officials responsible for micro-prudential and macroprudential supervision from the financial services authorities, including supervisors and financial stability departments, of MEFMI countries.