Macroprudential Tools for Banks and Non-Banks

MPT

TARGET GROUP | Mid-level to senior officials from central banks, regulatory agencies and ministries of finance or economics who are involved in financial stability and macroprudential policy.

DESCRIPTION | This one-week course will explore the macroprudential tools and techniques that policymakers can use to safeguard the stability of the financial system as a whole.

The course will focus on designing a proper macroprudential mandate and operating framework, and analyzes the links between macroprudential policy, monetary policy and microprudential supervision in various institutional set-ups. It will also cover international aspects of macroprudential policy.

It will then proceed to analyze in detail various macroprudential instruments that can be applied to banks and bank lending transactions. Along the time dimension of systemic risk, the course will address how to properly use instruments, such as countercyclical capital buffers, time-varying risk weights, limits on LTV/LTI, leverage ratio or through-the-cycle provisioning, in a countercyclical way. In this regard, it will also present indicators, such as credit cycle variables and indicators of excessive risk taking that can be used to calibrate the tools. In this context the course will also look at how these macroprudential tools sit alongside microprudential capital requirements and prudential measures for the housing market. Within the cross-sectional dimension of systemic risk, the course will review the SIFI identification methodology and the use of SIFI surcharges. In addition, the course will look at liquidity risk and approaches to address it using liquidity and funding adequacy tools from a microprudential perspective or from a systemic perspective.

In a subsequent step, the course will proceed to discuss the emerging field of macroprudential policy beyond banking. This part of the course will also draw insights from crisis episodes in parts of the non-bank financial sector in recent years and discuss their relevance for preventive macroprudential policy and central bank balance sheet tools. The course will close with a general discussion on possibilities and limits of macroprudential policy both for banks and non-banks.

The course requires a high level of participation. Several participants may be invited to give presentations in their fields of expertise. The seminar will be supplemented by practical sessions that will explore several techniques in greater depth.

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Course Details

Start: 20250908Sep 08
End: 20250912Sep 12

Language: English

Sponsoring Organization: JVI/BoE

Admin Arrangements


Application Deadline: June 08, 2025

Apply here