The Program is designed to provide participants with tools to assist them in their surveillance of the financial sector and to take necessary measures when alerted to an impending crisis. It also provides them the opportunity to practise the roles that central banks, supervisory/regulatory authorities and deposit insurance corporations play in managing a crisis arising from problems in a potentially systemic financial institution. The simulation will include exposure to the spill-over effects due to interconnectedness of markets and sectors, and practise using the tools available to deal with the systemic consequences of the failure of a financial institution.
Participants will learn how to use various indicators and approaches to alert them to risks of impending problems and crises and to carry out their surveillance of financial institutions and the financial system. They will learn about assessments of SIFIs, and how to choose the most relevant from among the resolution options available, including assessing various costs involved in bail-ins such as consideration of creditor compensation, and how to prepare contingency plans to manage crises.
The Program will provide participants with the opportunity to:
- Clearly understand the theoretical underpinnings of Recovery, Crisis Management and Resolution Frameworks.
- Map the existing Recovery, Crisis Management and Resolution Powers amongst the different authorities responsible for safeguarding financial stability.
- Develop Emergency Liquidity Assistance Frameworks for consideration by the Government.
- Practise the roles that the supervisory authorities and central banks play in managing financial crises through simulation exercises.
- Prepare Draft National Financial Sector Crisis Management and Contingency Plan including institutional structures, coordination mechanism and communication strategy.
The Toronto Centre uses a highly interactive approach to teaching through the use of case studies, lectures, simulations and exercises. Participants will work in discussion groups on group activities on issues raised in the case studies and lectures. In a simulated environment, the participants will be able to (i) practise using processes of contingency planning and dealing with failing banks and the impact on other financial system entities; (ii) co-ordinate with supervisors, central banks and deposit insurers and with other authorities nationally and internationally in a crisis; and (iii) deal with systemic consequences of a financial crisis. At the end of the Program, participants will be able to better understand and tailor the critical components of a crisis preparedness/contingency planning guide in the event of a financial crisis in accordance with international best practices.
The Program is designed for senior supervisors and regulators from Sub-Saharan Africa, particularly from the Central Bank, Capital Markets Authority/Securities Commission, Insurance Regulatory Authority, Deposit Insurance Corporation and other agencies involved in financial stability concerns, including resolution options.
PLEASE NOTE THAT THE PROGRAM FOLLOWS WEST AFRICAN STANDARD TIME.