Training Program

Officials from central bank financial stability departments, banking regulatory and supervisory bodies, and ministries of finance.

Participants are expected to have a degree in economics or finance. Experience with financial stability analysis is highly desirable.

The content of this topical course on Systemic Macro-Financial Risk Analysis in its 2021 inception will be centered—first—on financial sector policy measures deployed in response to the Covid-19 pandemic around the world. The course aims to convey to its participants the economic rationale and channels for various policies to exert their impact, regarding policies such as loan deferrals (moratoria), guarantees, the relaxation of capital buffers, exceptional bank liquidity support, etc. It will discuss various considerations concerning the retreat from such expectational support measures and the possibly evolving risks to financial stability arising from their current use in the future.
Second, the course will focus on Expected Credit Loss (ECL) modeling for financial institutions; from the perspective of supervisory and macroprudential oversight institutions. This topic is of particularly high relevance at the current juncture for two reasons. First, it is in view of the accounting regime change in 2018 and the subsequent efforts of financial institutions, their supervisors, as well as the authorities in charge of macroprudential stress testing, to define what data needs are implied, to conduct the data collections, and to explore what quantitative methods ought to be developed to operate under the new accounting regime. Second, it is highly relevant in view of the ongoing Covid-19 pandemic and the temporary policy responses (as well as financial institutions’ own behavioral responses) of diverse kinds in relation to the accounting regime and its interplay with regulatory capital requirements.