Training Program

Central bank officials from CDOT and SARTTAC member countries.

The participants are expected to be involved in the design and operationalization of the Emergency Liquidity Assistance (Lender of last resort) framework. They usually belong to the Monetary Operations, Banking Supervision, Financial Stability, Risk Management, and Legal departments.

This course is a continuation of the joint SARTTAC-CDOT course. Earlier segments included: i) interest rate corridor (August 2021); ii) central bank daily liquidity management (October 2021); and iii) collateral framework for central bank liquidity-providing operations (January 2022). The topic of the April 2022 segment is Emergency Liquidity Assistance (Lender of last resort). All central banks should be ready to act as lenders of last resort, by providing Emergency Liquidity Assistance (ELA) to solvent banks facing temporary liquidity stress, to preserve financial stability. The topic is of interest to officials from central banks in the region, independent of their current monetary policy regime. The course will be delivered remotely. The segment on ELA will consist of three 90-minute sessions held over three days. It will bring together in a virtual format country officials and IMF experts to discuss the importance of and ELA framework. On day one an IMF expert will deliver a presentation on the key principles of an ELA framework. The lecture on day 2 way will elaborate on the operational considerations to implement such a framework. On day 3, invited central banks will present a case study to share its experience and challenges faced in the design and implementation of an ELA framework. This will be followed by a panel discussion.