Macro-prudential Policy: Implementing the Financial Stability Mandate 2022

Macro-prudential Policy: Implementing the Financial Stability Mandate

Macro-prudential Policy: Implementing the Financial Stability Mandate

March 14 – 17

Live Content sessions held : 8am–12pm (EST) | 1pm–5pm (GMT) | 9pm–1am (SGT) 

Chair: Maria Nieto, senior advisor in the directorate of financial stability, regulation and resolution, Bank of Spain 

What are the long-term impacts – and policy lessons – from the Covid-19 pandemic?

How can central banks, as the institution responsible for financial stability incorporate climate change into regular assessments and stress tests?

What are the systemic implications of CBDCs and stablecoins – and what are the priorities from a financial stability viewpoint?

For those charged with managing financial stability within central banks, these are just some of the major questions they are facing when addressing systemic risks in the global financial system. Increasingly, central bankers recognise the need not just to update toolkits but to overhaul frameworks.

This course is designed to equip central bankers to meet these challenges.

Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, with time set aside for a workshop on implementing key learnings.

View chair letter.

 

Course agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

Macro-prudential Policy: navigating a volatile landscape

13:0013:30

Course introduction
Course introduction session led by the chair

13:00 - 13:30

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations
Maria Nieto

senior advisor, International Economics

Bank of Spain

María J. Nieto is Senior Advisor in the Directorate of Financial Stability, Regulation and Resolution, at Bank of Spain where she has developed her career since December 2000. She is author of several articles on banking, financial stability and regulatory issues that have been published by prestigious peered reviewed journals and she is member of the Editorial Boards of the Journal of Banking Regulation and the Journal of Financial Regulation and Compliance. She has cooperated as consultant with the IMF and the Federal Reserve Bank of Atlanta and has worked at the ECB, Council of Economic Advisors to the Spanish President and the IMF. Ms Nieto earned a PhD cum laude from the Universidad Complutense de Madrid and MBA (finance) from the University of California Los Angeles.

13:3014:30

Macro-prudential policies: policy responses to Covid-19

13:30 - 14:30

  • Tips for effective coordination and calibration of macro- and micro-prudential policy
  • Implications for institutional arrangements and organisation
  • Examples of mechanisms for a continuous exchange of information for conflict resolution
  • Case study: macro- and micro-prudential supervision in a Covid-19 era 
John Fell

Deputy director general, macro-prudential policy and financial stability

European Central Bank

John Fell is Deputy Director General for Macroprudential Policy & Financial Stability in the ECB. He is also the chair or co-chair of several international working groups - including the Eurosystem’s Macroprudential Policy Group (MPPG), the European Systemic Risk Board’s (ESRB) Instrument Working Group (IWG), and the ESRB’s task force on stress-testing. He is a member of the ECB’s Financial Stability Committee (FSC), the ESRB’s Advisory Technical Committee (ATC), and the Financial Stability Board’s Standing Committee on Assessing Vulnerabilities (SCAV). He led the stress-testing work for the ECB’s “comprehensive assessment” in 2014 as well as EU-wide banking sector stress-tests coordinated by the Committee of European Banking Supervisors (CEBS) (2009, 2010) and the European Banking Authority (EBA) (2011, 2014). His crisis management experience is extensive, including negotiating EU/IMF financial assistance programs in several euro area countries (e.g. in Ireland, Portugal and Spain). Between 2003 and 2010, he was Head of the ECB’s Financial Stability Division, spearheading the inaugural issue of the ECB’s Financial Stability Review in 2004 and directing it thereafter. Before moving to the financial stability area in 2003, he was an Adviser in the ECB’s Monetary Policy Directorate. Prior to joining the ECB in 1998, as a principal economist, he held various positions at the European Monetary Institute (EMI) and the Central Bank of Ireland. John holds postgraduate degrees in Economics (1987) and in Finance (1993) from University College Dublin and Dublin City University respectively, and is a PhD candidate at the Rotterdam School of Management, Erasmus University. He has published his research in several academic and policy journals.

14:3014:45

Break

14:30 - 14:45

14:4515:45

Climate risks as the new source of systemic instability

14:45 - 15:45

  • Implications of climate change for the stability of financial systems
  • Overview of key transition and physical risks
  • The role of financial policy and regulation
  • Climate scenario analysis for central banks and supervisors
Thomas Allen

Research economist

Banque de France

Thomas Allen is a Research economist at the Banque de France. His research focuses on green finance, working on the development of metrics and modeling tools for climate and environment-related financial risk assessment. Thomas is assigned to the NGFS Secretariat (hosted at the Banque de France), where he was charge of the second workstream of the NGFS dedicated to Macrofinancial issues. He supported the WS2 Chair’s team in developing the NGFS reference scenarios for the first phase of work. He also helped coordinate the Banque de France/ACPR’s application of the NGFS scenarios for its pilot risk assessment exercise. Prior to joining the Banque de France, Thomas worked for the OECD, Bioversity International (CGIAR) and the French National Institute for Agronomic, Food and Environmental Research (INRAE).

15:4516:15

Networking break
An opportunity to share experiences with your fellow participants.

15:45 - 16:15

16:1517:15

Stress testing

16:15 - 17:15

  • Stress testing: taxonomy and key concepts
  • Stress testing in the euro area, UK, and the US
  • Stress testing: the way forward
  • Climate change stress tests
Pedro Duarte Neves

Former vice-governor

Bank of Portugal

Pedro Duarte Neves was Vice-Governor of Banco de Portugal from June 2006 to September 2017. During that period, he also chaired the Board of the Deposit Guarantee Fund, the Board of the Resolution Fund and the Board of the National Council for Audit Supervision. As of September 2017 he acts as Adviser for the Board of Directors of Banco de Portugal.

Pedro Duarte Neves acted as Alternate Chairperson of the EBA from July 2013 to June 2018 and, over the past years, chaired a number of European groups on economic and financial matters in the scope of the Financial Stability Board, the European Banking Authority and the Joint Committee of the European Supervisory Authorities. Pedro Duarte Neves was a member of the ECB’s Supervisory Board until September 2014 and a member of the General Board of the European Systemic Risk Board, from its creation to September 2017.

He joined the Research Department of Banco de Portugal in 1994 and served there until July 2004. He chaired the National Communications Authority (ANACOM) from September 2004 to June 2006.

Pedro Duarte Neves holds a PhD in Economics from Université Catholique de Louvain and he is Professor at Católica Lisbon – Business and Economics.

Building an effective framework against systemic risk

13:0014:00

Formulation of macro-prudential policies: implementation and governance issues

13:00 - 14:00

  • Key steps for the effective design of macro-prudential policy
  • Ensuring effective use of policy tools and instruments
  • Main operational and governance challenges, institutional limitations and how to overcome them
  • Discussion: formulation, implementation, and governance of macro-prudential policy in the delegates’ jurisdictions
John Fell

Deputy director general, macro-prudential policy and financial stability

European Central Bank

John Fell is Deputy Director General for Macroprudential Policy & Financial Stability in the ECB. He is also the chair or co-chair of several international working groups - including the Eurosystem’s Macroprudential Policy Group (MPPG), the European Systemic Risk Board’s (ESRB) Instrument Working Group (IWG), and the ESRB’s task force on stress-testing. He is a member of the ECB’s Financial Stability Committee (FSC), the ESRB’s Advisory Technical Committee (ATC), and the Financial Stability Board’s Standing Committee on Assessing Vulnerabilities (SCAV). He led the stress-testing work for the ECB’s “comprehensive assessment” in 2014 as well as EU-wide banking sector stress-tests coordinated by the Committee of European Banking Supervisors (CEBS) (2009, 2010) and the European Banking Authority (EBA) (2011, 2014). His crisis management experience is extensive, including negotiating EU/IMF financial assistance programs in several euro area countries (e.g. in Ireland, Portugal and Spain). Between 2003 and 2010, he was Head of the ECB’s Financial Stability Division, spearheading the inaugural issue of the ECB’s Financial Stability Review in 2004 and directing it thereafter. Before moving to the financial stability area in 2003, he was an Adviser in the ECB’s Monetary Policy Directorate. Prior to joining the ECB in 1998, as a principal economist, he held various positions at the European Monetary Institute (EMI) and the Central Bank of Ireland. John holds postgraduate degrees in Economics (1987) and in Finance (1993) from University College Dublin and Dublin City University respectively, and is a PhD candidate at the Rotterdam School of Management, Erasmus University. He has published his research in several academic and policy journals.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Basel IV – The Final Countdown

14:15 - 15:15

  • Basel IV implementation: Overview of global progress and main challenges
  • EU Banking Package 2021: Finalisation of the CRR 3 and CRD 6 legislative process
  • Progress in other key jurisdictions: Focus on the new US Basel III endgame and UK Basel 3.1 proposals
  • Expected impact across regions: Will Basel IV disadvantage EU banks versus their US or global counterparts?
Bozena Gulija

Financial regulation and risk management expert

Former Croatian National Bank

Bozena has over 15 years of experience in the financial sector covering banking supervision, financial regulation, and risk management across several areas (global, EU, Croatia, Luxembourg, Germany, Belgium). She has worked for private companies including Euroclear, State Street, Nordea, PBZ (Intesa Sanpaolo Group), as well as public institutions like the European Court of Auditors and the Croatian National Bank. She has also collaborated with professional and academic institutions through lectures and research projects, as well as authored and contributed to articles on global and European financial sector regulatory developments and risk management.

LinkedIn: https://www.linkedin.com/in/bozenagulija

Email: [email protected]

15:1515:30

Break

15:15 - 15:30

15:3016:30

Making the most of big data and advanced analytics in macro-prudential analysis

13:00 - 14:00

  • Big data
  • Big data and central banks
  • Opportunities & risks
  • Applications to systemic risk
Stefano Borgioli

Senior team lead - economist-statistician

European Central Bank

Stefano Borgioli is a Senior Team Lead - Economist-Statistician in the Monetary & Economic Statistics Division of the Directorate General Statistics of the European Central Bank (ECB). He joined the ECB in April 1999 after 3-year working experience as an economist in the Macro-Prudential Department of Banca d’Italia. He had temporary stints in both the Directorate General Macroprudential Policy & Financial Stability and the Directorate General Economics of the ECB.

He has worked extensively on banking statistics, statistics for macroprudential analysis and financial integration. He published in these areas and he frequently gives lectures at Universities (Politecnico di Milano, University of Florence, University of Frankurt).

Expanding the financial stability toolkit

13:0014:00

Monetary policy and financial stability: longevity of ‘leaning against the wind'

13:00 - 14:00

  • Key areas of interactions between financial stability and monetary policy
  • Overview of dilemmas associated with ‘leaning against the wind’
  • Implications for risk taking, credit and asset prices
  • Discussion: how closely should decision on macro-prudential and monetary policy be integrated?
Karsten Gerdrup

Director, macroeconometric modelling - monetary policy and financial stability

Norges Bank

14:0014:15

Break

14:00 - 14:15

14:1515:15

Shadow banking and its role in the recent Covid-19 crisis

15:30 - 16:30

  • Recent developments in shadow banking: some relevant statistics
  • The role of shadow banking institutions during the Covid-19 crisis
  • Is there a need to reassess the prudential regulatory approach?
Anand Sinha

Former deputy governor

Former Reserve Bank of India

Anand Sinha joined the Reserve Bank of India (RBI) in July 1976 and became deputy governor in January 2011. He was adviser in RBI up to April 2014 after demitting the office of deputy governor in RBI on January 18, 2014. As deputy governor, he was in charge of regulation of commercial banks, non-banking financial companies, urban cooperative banks and information technology, among others. He has represented the RBI in various Committees/Groups of the Bank for International Settlements (BIS), was on the G20 Working Group on Enhancing Sound Regulation & Strengthening Transparency and also a board member of the Securities and Exchange Board of India. He holds master’s degree in physics from the Indian Institute of Technology, New Delhi.

15:1515:45

Networking break
An opportunity to share experiences with your fellow participants.

15:15 - 15:45

15:4516:45

Systemic stress-testing: new tools and frameworks: is Covid-19 prompting a reassessment?

15:45 - 16:45

  • The evolving role of systemic stress-testing in financial stability assessment
  • Building blocks of an effective stress testing framework
  • Avenues for post-Corona stress-testing  
  • Discussion: is Covid-19 prompting a reassessment?
Jérôme Henry

Principal adviser, macroprudential policy and financial stability

European Central Bank

Jérôme Henry is the principal adviser in the European Central Bank (ECB) macroprudential policy and financial stability division. His responsibilities cover financial stability assessments and the related infrastructure requirements. Henry has led ECB teams for quality assurance of the single supervisory mechanism stress tests and was involved in country crisis management. He also worked at the Bank for International Settlements as a Financial Stability Institute fellow. Prior to this, Henry was a long-standing Eurosystem forecast co-ordinator. He started his time at the ECB leading the macromodelling team. Prior to his central bank career, Henry conducted research at the French Economic Observatory and the French National Institute of Statistics and Economic Studies. He is a founding member of the Centre for Economic Policy Research Euro Area Business Cycle Network. An Ensae Paris graduate, Henry holds a PhD in Economics and a bachelors degree in History from Paris Sorbonne.

Topical issues of financial stability

13:0014:00

Understanding the dynamics of financial stability: Financial Sector Stability Assessments

14:15 - 15:15

  • A comprehensive approach to financial stability
  • Conceptual underpinnings of Financial Sector Assessment Program (FSAP)
  • Case studies
Daniel Hardy

Former head of capital markets department

Former International Monetary Fund

Daniel C. Hardy is currently a Visiting Scholar at the Vienna University for Economics and Business. For most of his career he worked at the International Monetary Fund, contributing to macroeconomic and financial sector surveillance; Fund-supported programs; Fund policies; and technical assistance in a wide range of industrialized, emerging market, and developing countries. Recently he was in charge of the Debt Capital Markets Division, leading work on debt management; debt market development; and sovereign debt restructurings. He has held positions at the Deutsche Bundesbank, the Austrian Financial Market Authority, and St. Antony’s College, Oxford. His recent research has addressed topics in public sector governance; the development of the European Monetary Union and the Capital Market Union; and sovereign debt management. He studied at the universities of Oxford and Princeton.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Financial stability and the evolution of global interest rates: the end of the low interest rate era?

14:15 - 15:15

  • Causes of the secular decline in interest rates
  • Stability implications
  • Effects on emerging markets
  • Recent and prospective interest rate movements
  • Possible policy responses
Daniel Hardy

Former head of capital markets department

Former International Monetary Fund

Daniel C. Hardy is currently a Visiting Scholar at the Vienna University for Economics and Business. For most of his career he worked at the International Monetary Fund, contributing to macroeconomic and financial sector surveillance; Fund-supported programs; Fund policies; and technical assistance in a wide range of industrialized, emerging market, and developing countries. Recently he was in charge of the Debt Capital Markets Division, leading work on debt management; debt market development; and sovereign debt restructurings. He has held positions at the Deutsche Bundesbank, the Austrian Financial Market Authority, and St. Antony’s College, Oxford. His recent research has addressed topics in public sector governance; the development of the European Monetary Union and the Capital Market Union; and sovereign debt management. He studied at the universities of Oxford and Princeton.

15:1515:30

Break

15:15 - 15:30

15:3016:15

Closing remarks and delegate action plans
Concluding session led by the chair

15:30 - 16:15

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points
Maria Nieto

senior advisor, International Economics

Bank of Spain

María J. Nieto is Senior Advisor in the Directorate of Financial Stability, Regulation and Resolution, at Bank of Spain where she has developed her career since December 2000. She is author of several articles on banking, financial stability and regulatory issues that have been published by prestigious peered reviewed journals and she is member of the Editorial Boards of the Journal of Banking Regulation and the Journal of Financial Regulation and Compliance. She has cooperated as consultant with the IMF and the Federal Reserve Bank of Atlanta and has worked at the ECB, Council of Economic Advisors to the Spanish President and the IMF. Ms Nieto earned a PhD cum laude from the Universidad Complutense de Madrid and MBA (finance) from the University of California Los Angeles.

Learning outcomes

At the conclusion of the training, participants will be able to:

  • Evaluate their macro-prudential policies in the light of Covid-19
  • Create scenario based stress testing for climate-related risks
  • Understand how to measure macro-prudential instruments’ effectiveness
  • Formulate an outlook for macro-prudential policy in the near-term
  • Analyse emerging international standards and future policy initiatives

Maria Nieto

senior advisor, International Economics

Bank of Spain

María J. Nieto is Senior Advisor in the Directorate of Financial Stability, Regulation and Resolution, at Bank of Spain where she has developed her career since December 2000. She is author of several articles on banking, financial stability and regulatory issues that have been published by prestigious peered reviewed journals and she is member of the Editorial Boards of the Journal of Banking Regulation and the Journal of Financial Regulation and Compliance. She has cooperated as consultant with the IMF and the Federal Reserve Bank of Atlanta and has worked at the ECB, Council of Economic Advisors to the Spanish President and the IMF. Ms Nieto earned a PhD cum laude from the Universidad Complutense de Madrid and MBA (finance) from the University of California Los Angeles.