Financial crises occur infrequently, but as recent experience has shown, the potential public costs are enormous. As the effects of the current financial crisis spreads, the need for central banks and supervisory authorities to be prepared for crisis increases. Crisis simulation exercises are one way to prepare for such low probability, high impact events. In collaboration with the Toronto Centre, The SEACEN Centre will organise a regional crisis preparedness Programme, which will include a crisis simulation exercise.

Objectives: The simulation Pogramme is designed to provide participants with the opportunity to practice the roles that the supervisory authorities and central banks play in managing a crisis arising from problems in a potentially systemic financial institution. The simulation will include cross border flows. In a simulated environment, the participants will be able to (i) practice using processes of contingency planning and dealing with failing banks; (ii) co-ordinate with supervisors, central banks and deposit insurers and with other authorities nationally in a crisis; and (iii) deal with systemic consequences of a bank failure.

Resource Persons: The faculty of speakers will comprise technical experts from the Toronto Centre, the World Bank and other international financial institutions.

Target Group: The simulation programme is organised for staff of central banks/monetary authorities who deal with financial stability, financial surveillance and supervision of banking institutions.