TARGET GROUP | Junior- to mid-level government officials involved in the surveillance of the financial sector, specifically including the staff of the central bank, financial regulatory agencies, and other agencies involved in macroprudential oversight. Participants should have a degree in economics or finance (preferably at the master’s level), or equivalent work experience, good quantitative skills, and proficiency in the use of computers to analyze data. Participants are strongly recommended to have completed the online Financial Market Analysis (FMAx) course prior to enrolling in this course. Many of the workshops involve the use of Excel worksheets and familiarity with the basics of Excel is important.
DESCRIPTION | This two-week course, presented by the IMF’s Institute for Capacity Development, aims at introducing participants to key elements and tools used in the analysis and mitigation of financial sector vulnerabilities that provide a foundation on which to build surveillance systems. It focuses on the assessment of the main risks facing bank and non-bank financial institutions and their potential macroeconomic implications. The course explains how to detect a build-up of vulnerabilities that may threaten financial stability, and how they may propagate to other sectors of the economy. A combination of lectures and hands-on workshops allows participants to use the latest techniques for risk assessment.
Upon completion of this course, participants should be able to:
• Measure banks’ main risks (e.g., credit, market, funding) and use bank balance sheet indicators of financial soundness (e.g., asset quality, liquidity, etc., including the IMF’s Financial Soundness Indicators), to assess banking system risks
• Design and perform basic macro stress tests of solvency and liquidity and interpret the results
• Describe the importance of non-bank financial intermediaries and their links to banks
• Assess macro-financial linkages (e.g., the impact of business cycles on banks’ soundness), including the links between the financial sector, the government, and the real economy
• Track the buildup of systemic risk and vulnerabilities associated with credit, real estate prices, leverage, balance sheet mismatches, and interconnectedness
• Assess how shocks can propagate and amplify through the financial system, including through adverse liquidity spirals, the new approach to financial regulation since the Global Financial Crisis