Virtual: Financial Sector Policies

Source details

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 macroprudential oversight.

Expected qualifications:
- Advanced degree in economics or finance, or equivalent work experience.
- Basic understanding of econometrics.
- Ability to interpret econometric results.
- Working knowledge of Excel.
Strong recommendations:
- It is strongly recommended that applicants have completed the online Financial Market Analysis (FMAx) course and the Financial Sector Surveillance (FSS) course because understanding and assessing financial sector risks is important to the design of mitigating policies.

The course begins with an overview of financial risks and how they are transmitted within and between the financial system and the real sector.
Participants examine the design and impact of financial sector policies to mitigate assessed vulnerabilities, starting with the rationale for micro-prudential and macroprudential policies.
The interactions between macroeconomic and macro-prudential policies are discussed.
Emphasis is on preventive strategies, with additional coverage of policies to manage situations of financial distress and contingency planning.
Teaching methods:
- Combination of lectures, case studies, and hands-on workshops.
- Participants discuss and experiment with various policies to gauge their outcomes, intended and unintended.
Referral:
- Participants primarily interested in risk assessment are referred to the Financial Sector Surveillance course, where the focus is primarily quantitative.

Upon completion of the course, 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 micro-prudential and macroprudential policies.