Financial Sector Policies

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Financial Sector Policies

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Bibliographic details

• Session: CT 19.05
• Location: Dalian, China
• Dates: April 15-26, 2019 (2 weeks)
• Primary language: English
• Interpretation language: Chinese

Target Audience and Qualifications

• Target Audience:
  • Junior to senior government officials engaged in setting policy for the financial sector, particularly the staff of central banks, financial regulators, and any other agencies involved in micro or macro prudential oversight.
• Qualifications:
  • Advanced degree in economics or finance or equivalent work experience.
  • Basic understanding of econometrics and the ability to interpret econometric results.
  • Strongly recommended: completion of the FMAx course and a working knowledge of Excel.
  • Preferable: prior completion of the Financial Sector Surveillance (FSS) course because understanding and assessing financial sector risks is important to the design of mitigating policies.

Course Description

• Overview:
  • Begins with an overview of how risks are transmitted within and between the financial and real sectors.
  • Examines the design and impact of financial sector policies for mitigating vulnerabilities.
• Policy focus:
  • Rationale for microprudential and macroprudential policies.
  • Interactions between macroeconomic and prudential policies.
  • Emphasis on preventive strategies, with discussion of policies to deal with distress situations.
• Methodology:
  • Combination of lectures, case studies, and hands-on workshops to discuss and experiment with various policies and gauge intended and unintended outcomes.
• Note:
  • Participants primarily interested in risk assessment are referred to the Financial Sector Surveillance course, where that is the focus.

Course Objectives

• Upon completion, participants should be able to:
  • Identify channels through which shocks are transmitted between the financial sector and the real economy, and within and between financial systems.
  • Analyze relevant micro- and macroprudential policies, how they are likely to interact with other policies, and any possible unintended consequences.
  • Recommend macroprudential tools to prevent and mitigate systemic risk and identify likely specific implementation challenges.
  • Assess the effectiveness of microprudential and macroprudential policies.

References

• Core Elements of Banking Supervision (CBS)
• Advanced Government Finance Statistics (GFS-A)
• Fiscal Sustainability (FS)
• Safeguards Assessments of Central Banks (SAC)
• Macroeconomic Management in Resource Rich Countries (MRC)