Macroprudential Supervision, including Stress Testing (joint with FSS)

Event Code :MP4A
Venue :Indonesia
Host Name :Bank Indonesia
Coordinator :Ms. Mangai
Date From :06 Aug 2018
Date To :10 Aug 2018

Descriptions


The financial crisis highlighted the limitations of monetary policy instruments in the pursuit of the financial stability objective. The same applies to supervision that mainly focuses on individual financial institutions without taking proper account of the soundness of the entire financial system. Thus, to deal with risks to financial stability in a more comprehensive manner, macroprudential policy is being increasingly used as part of the central banks’ policy mix. This course will cover the objective and rationale for macroprudential policy, the range of macroprudential instruments, and institutional arrangement needed to best design and operationalize macroprudential policy. The course also covers analytical tools to detect risks to financial stability with the aim of activating (and deactivating) macroprudential instruments.

Target Participants: The course is designed for staff from central banks, monetary authorities, and other national authorities involved in formulating and implementing macroprudential policy, or overseeing risks to financial stability. Course participants should have at least three years of work experience that relates to the course content to allow them to meaningfully participate in the various interactive sessions, many of which require sharing of experiences. A participant group with diverse background experiences is beneficial as it reflects the need for cross-functional collaboration within and among national authorities in devising and successfully implementing macroprudential policy measures.

Objective


At the end of the course, participants will be able to:

  • (1) have a clearer understanding of the complementarity and substitutability between monetary policy and macroprudential policy;
  • (2) better understand the externalities that macroprudential policy might create;
  • (3) appreciate the challenges and pitfalls in the implementation of macroprudential policy;
  • (4) have a more comprehensive view of the institutional and governance arrangements for the financial stability mandate; and
  • (5) understand the importance of robust analytical tools in support of judgmentbased policy making.