Training Program

Mid-level to senior officials working on financial supervision or financial stability in central banks or other supervisory authorities.

Participants are expected to have experience with stress testing, Basel regulations, and financial stability analysis.

This course, presented by the Monetary and Capital Markets Department (MCM), discusses recent developments in solvency and liquidity stress testing for banks. This course gives participants the opportunity to learn and apply new tools used or created by MCM for purposes of stress testing and systemic risk analysis. Some of the tools are integral to the Financial Sector Assessment Program (FSAP) and have been also used in the context of the most recent China FSAP, therefore, the content is adapted to models that can be used under the specific data environment. Moreover, the course allows participants to share their past experiences on stress testing methodologies and financial stability analysis. The course reviews stress testing objectives, methodologies, techniques, and good practices. Much of the course consists of hands-on modules that expose participants to the entire stress testing cycle: from entering data and estimating macro-financial models to designing scenarios, selecting assumptions, running tests, communicating the results, and incorporating them in policy decision making, for example, by informing the calibration of capital and liquidity buffers.