Financial crises occur infrequently but, as experience shows, their costs are enormous. Economies falter, growth stalls, and the poor are disproportionately affected with more people falling into poverty and the opportunities for escaping poverty rapidly drying up.
Financial sector supervisors must react quickly when a crisis occurs. Whether the crisis originates domestically or in another part of the world, they will want to limit the impact on their country and prevent the impact from spreading further. Toronto Centre offers programs in crisis preparedness and crisis management to help supervisors do this effectively. These programs include crisis simulation exercises that prepare supervisors for these high-impact events. We offer sessions on macroprudential regulation, systemic risk assessment frameworks, bank resolutions, central bank instruments (emergency liquidity assistance), and contingency planning, which assist agencies to be prepared for potential crises and better deal with them when they occur.