Training Program

Mid-level to senior officials in central banks, regulatory agencies, supervisory authorities, ministries of finance, deposit insurance funds, and other agencies with responsibility for bank supervision, bank resolution, and the operation of financial safety nets. Participants are expected to have experience in bank supervision, bank resolution (policy issues or operational experience) and/or depositor protection, and expected to play a key role in financial crisis preparedness and management in their respective institutions.

This course, presented by the IMF's Monetary and Capital Markets Department in collaboration with the Yale Program on Financial Stability and the JVI, provides a comprehensive overview of conceptual and operational issues related to the restructuring and resolution of weak banks. Among the topics discussed during the course are:

• Identification and supervision of weak banks: common causes of banking problems and how to identify them as well as early intervention tools and supervisory approaches for dealing with weak banks;
• Operational preparedness: institutional foundations of the financial safety net and inter-agency coordination; building blocks of effective resolution regimes (guided by the Financial Stability Board's Key Attributes of Effective Resolution Regimes); recovery and resolution planning; initiatives to test operational preparedness; and the role of deposit insurance and depositor preference;
• Crisis containment: liquidity support, government guarantees, and exceptional administrative measures to stop persistent liquidity outflows;
• Bank restructuring and resolution: initiation of resolution proceedings; resolution options for systemically important and non-systemic banks; cross-border resolution; system-wide diagnostics and restructuring strategies; and policy considerations and instruments for public capital support;
• Dealing with distressed assets: market failures and policy reforms; approaches for resolving nonperforming loans-supervisory policies, insolvency and debt enforcement, distressed asset markets and the role of asset management companies.

The course draws on lessons learned from past crisis management strategies in crisis countries and has a strong applied focus, as reflected by numerous mini case studies, workshops and a crisis simulation group assignment that are integrated into the course.