Financial Stability Policy of Central Banks

FSCB

TARGET GROUP | Junior to mid-level officials from central banks, ministries of finance and regulatory agencies in charge of financial stability or financial regulation and supervision.

DESCRIPTION | The purpose of this one-week course is to give participants a comprehensive understanding of the financial policy toolkit available to central banks for safeguarding the stability of the financial system and discuss some of the recent trends and challenges related to financial stability.

The course will begin by discussing the surveillance of vulnerabilities and risks to financial stability and providing a rationale for the use of macroprudential policies. Participants will learn about the different instruments available, their objectives, and the existing evidence of their effectiveness. Specifically, the course will discuss the use and calibration of capital-based measures (such as countercyclical capital buffer) as well as borrower-based measures (like loan-to-value ratios or debt-to-income ratios) as crucial tools for building resilience and taming the financial cycle. To reinforce the theoretical knowledge, hands-on workshops will be conducted where participants will assess risks in the financial system and discuss calibration of macroprudential policy instruments. Additionally, lectures and workshop sessions will provide insights into establishing an early warning system and conducting macroprudential stress tests. These sessions will demonstrate how these analytical tools are employed in France to help policymakers make informed decisions in using macroprudential policy instruments.

Furthermore, the course will address the risks posed by significant levels of dollarization that characterize the economic and financial systems of many emerging markets. It will explore the factors driving this phenomenon and discuss policies that can help mitigate these risks.

Subsequent sessions of the course will focus on recent financial stability trends and challenges, in particular, the interaction of monetary and financial stability policies in the current inflationary environment and financial stability implications of climate change.

Back to course overview

Course Details

Start: 20240122Jan 22
End: 20240126Jan 26

Language: English

Sponsoring Organization: JVI/BdF

Admin Arrangements


Application Deadline: November 28, 2023