Collateral Framework, Risk Management, Counterparty Eligibility, and ELA - Repo markets and Machine Learning techniques

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Collateral Framework, Risk Management, Counterparty Eligibility, and ELA - Repo markets and Machine Learning techniques (CRMF)

Invitation

Session No.: PT 25.04

Location: Asuncion, Paraguay

Date: July 21-25, 2025 (1 week)

Delivery Method: In-person Training

Primary Language: English

Interpretation Language: Spanish

Target Audience

Legal, Supervisory, Risk Management and Financial Market Departments of the central banks. Or relevant authority engaged in activities related to the topics covered in this course.

Qualifications

    Professional Experience: Roles in Legal, Supervisory, Risk Management, or Financial Markets departments.
    Skills & Knowledge: Familiarity with basics of monetary policy, financial stability, or collateral frameworks. Strong analytical and policy design capabilities.
    Seniority: Mid- to senior-level professionals involved in policy or operational decision-making.

Course Description

This course provides central bank professionals with a comprehensive understanding of collateral policy and counterparty eligibility frameworks, essential for effective monetary policy implementation and financial stability. Participants will explore the design and application of collateral frameworks-including eligibility criteria, valuation, and risk controls-as well as the principles guiding counterparty selection and financial soundness assessments. Discussions will include recent developments - theoretical and practical - in risk management techniques aiming at protecting central bank's balance sheet while safeguarding central-bank market neutrality. The course emphasizes policy design, risk analysis, and operational considerations, equipping attendees with the tools to support resilient and efficient central banking operations. Concepts discussed during the lectures and workshops will be practiced in emergency liquidity assistance simulation exercise.

Course Objectives

Upon completion of this course, participants should be able to:

Understand the role of collateral frameworks in central bank lending operations and their importance in mitigating financial and operational risks.
Learn the key components of a collateral policy, including eligibility criteria, valuation methods, and risk control tools such as haircuts and margining.
Explore the design and implementation of counterparty eligibility criteria, distinguishing between rule-based and discretionary approaches, as well as between traditional banks and non-bank financial institutions.
Assess the impact of eligibility frameworks on monetary policy effectiveness, financial stability, market neutrality, and operational efficiency.
Enhance understanding of communication and transparency requirements for both monetary policy and emergency liquidity assistance (ELA) frameworks.
Foster interdepartmental collaboration among legal, supervisory, risk management, and financial market teams within central banks.

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