TARGET GROUP | Mid- to senior-level officials in central banks, supervisory authorities, ministries of finance, deposit insurance funds, and other agencies with responsibility for bank supervision, bank resolution, and the operation of financial safety nets. Participants are expected to have a degree in economics, finance, accounting, or equivalent experience.
DESCRIPTION | This one-week course, presented by the IMF’s Monetary and Capital Markets Department, provides a comprehensive overview of conceptual and operational issues related to the restructuring and/or resolution of weak banks.
Topics discussed during the course include:
• Weak bank identification and supervision: overview of common causes of banking problems and how to identify them, supervisory approaches for dealing with weak banks and techniques for quantifying systemic banking problems (asset quality reviews and stress tests)
• Crisis preparedness: building blocks of effective resolution regimes, guided by the Financial Stability Board’s Key Attributes of Effective Resolution Regimes; recovery and resolution planning; initiatives to test operational readiness; and the role of deposit insurance and depositor preference
• Crisis containment: actions designed to contain emerging crises and reestablish public confidence (emergency liquidity support, asset and liability guarantees and exceptional administrative measures to stop persistent liquidity outflows)
• Systemic bank restructuring and resolution: early intervention measures; diagnosis, triage and loss recognition; approaches for winding-down non-viable banks; stabilization options to achieve continuity of systemically important functions, policy considerations and instruments for public capital support; governance of the restructuring process
• Dealing with impaired assets: supervisory policies and strategies for the reduction of nonperforming loans, role of asset management companies
Upon completion of this course, participants should be able to:
• Explain the key building blocks of crisis preparedness and management
• Identify weak banks and come up with strategies for dealing with such institutions
• Assess their national bank resolution frameworks against international good practice
• Design credible strategies for systemic bank restructuring and resolution
• Identify and compare options for dealing with distressed assets