Financial Stability and Macroprudential Policy: A Comprehensive Training Course

Introduction

Financial stability is a critical public good, essential for the efficient functioning of an economy and for sustained economic growth. This training course is designed to provide policymakers and analysts with a comprehensive understanding of the conceptual foundations of financial stability and the modern policy toolkit used to safeguard it. Participants will gain a deep understanding of the causes and consequences of financial crises, the role of systemic risk, and the importance of a resilient financial system.

The program focuses on the emerging field of macroprudential policy, exploring the tools and frameworks used to mitigate systemic risk. We will examine how central banks and other regulatory bodies use instruments like loan-to-value (LTV) limits, countercyclical capital buffers, and debt-to-income (DTI) ratios to address vulnerabilities that threaten the entire financial system. By combining theoretical foundations with practical case studies, this course will equip participants with the skills necessary to identify and manage systemic risk and contribute to a more stable and resilient financial system.

Target Audience

  • Central bank financial stability staff
  • Financial regulators and supervisors
  • Commercial bank risk managers
  • Government finance and planning officials
  • Academics and students of finance
  • International financial institution staff
  • Public sector debt managers
  • Legal and compliance professionals

Duration

5 days

Course Objectives

Upon successful completion of this training, participants will be able to:

  • Explain the core concepts of financial stability and systemic risk.
  • Analyze the causes and consequences of financial crises.
  • Describe the policy toolkit for macroprudential policy.
  • Evaluate the effectiveness of different macroprudential tools.
  • Discuss the role of central banks and regulators in financial stability.
  • Apply analytical techniques to assess and monitor systemic risk.

Modules Course Content

Module 1: The Foundations of Financial Stability

  • Defining financial stability and systemic risk
  • The role of financial intermediaries
  • The causes and consequences of financial crises
  • The importance of a resilient financial system
  • The role of central banks as a lender of last resort

Module 2: The Macroprudential Policy Framework

  • The purpose of macroprudential policy
  • The difference between macro- and microprudential policy
  • The goals of macroprudential policy
  • The policy trade-offs and challenges
  • The role of a financial stability committee

Module 3: Macroprudential Tools

  • The use of loan-to-value (LTV) limits
  • The use of debt-to-income (DTI) limits
  • The countercyclical capital buffer (CCB)
  • The use of stress testing and scenario analysis
  • The role of a systemic risk tax

Module 4: The Role of the Central Bank

  • The central bank's mandate for financial stability
  • The coordination of monetary and macroprudential policy
  • The role of central banks in a crisis
  • The importance of data and surveillance
  • The challenges of independence and accountability

Module 5: Systemic Risk and Interconnectedness

  • The sources of systemic risk (e.g., liquidity, credit)
  • The role of network effects
  • The use of network analysis
  • The impact of cross-border financial linkages
  • The challenges of measuring systemic risk

Module 6: Financial Crises and Early Warning Indicators

  • The different types of financial crises
  • The use of early warning indicators
  • The challenges of forecasting a crisis
  • The role of credit cycles
  • The importance of a crisis management plan

Module 7: The External Sector and Financial Stability

  • The impact of capital flows on financial stability
  • The role of exchange rates and foreign currency debt
  • The challenges of managing a currency crisis
  • The role of international cooperation
  • The importance of a resilient external sector

Module 8: The Role of Technology and FinTech

  • The impact of FinTech on financial stability
  • The role of new technologies in payment systems
  • The challenges of regulating FinTech
  • The impact of digital currencies
  • The use of technology for surveillance

Module 9: Global Regulatory Frameworks

  • The role of the Financial Stability Board (FSB)
  • The Basel Accords (Basel III)
  • The challenges of global policy coordination
  • The role of international standards
  • The future of global regulation

Module 10: Case Studies and Current Debates

  • The 2008 Global Financial Crisis
  • The lessons from past financial crises
  • The debate over macroprudential policy
  • The challenges of managing a financial crisis
  • The future of financial stability

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

Financial Stability And Macroprudential Policy: A Comprehensive Training Course in Kenya
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