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 in the directorate of financial stability, regulation and resolution

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 

14:3014:45

Break

14:30 - 14:45

14:4515:45

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

14:45 - 15:45

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

15:4516:15

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

15:45 - 16:15

16:1517:15

Climate change stress testing

16:15 - 17:15

  • Climate change and financial stability
  • Stress testing and scenario design
  • Capital stress tests vs climate change stress tests
  • Case studies
  • Policy implications

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

14:0014:15

Break

14:00 - 14:15

14:1515:15

The central credit register and effective calibration of macro-prudential instruments

14:15 - 15:15

  • Overview of central credit registers as micro- and macro-prudential tools
  • Examples of credit register data applications for detecting risk build-up and concentration
  • Tips for calibration of macro-prudential instruments and assessment of their effectiveness
  • Case study: building a new central credit register framework

15:1515:30

Break

15:15 - 15:30

15:3016:30

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?

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?

14:0014:15

Break

14:00 - 14:15

14:1515:15

Understanding the dynamics of financial stability: Financial Sector Stability Assessments

14:15 - 15:15

  • Conceptual underpinnings of Financial Sector Assessment Program (FSAP)
  • Discussion of a case study

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
  • Opportunities and challenges of disruptive technological innovation  
  • Discussion: Is Covid-19 prompting a reassessment?

Topical issues of financial stability

13:0014:00

Debt restructuring in the Covid-19 era: A reassessment of insolvency procedures both for corporates and sovereigns

13:00 - 14:00

  • Requirements of effective corporate liquidation procedures
  • Corporate debt: Out of court vs court supervised procedures
  • Sovereign debt restructuring:  recent initiatives proposed by the G-20

14:0014:15

Break

14:00 - 14:15

14:1515:15

Financial stability and the evolution of global interest rates: how low for how long?

14:15 - 15:15

  • Causes of the secular decline in interest rates
  • Stability implications
  • Effects on emerging markets
  • Recent developments and risk factors
  • Possible policy responses

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 in the directorate of financial stability, regulation and resolution

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 in the directorate of financial stability, regulation and resolution

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.