Macro Prudential Analysis

One Week £ 1,900 | Two Week £3,500 | One Week ₦120,000

 

When looking at the health of the underlying financial institutions in the system, macroprudential analysis uses indicators that provide data on the health of these institutions as a whole including capital adequacy, asset quality, management performance, profitability, liquidity and sensitivity to systematic risks. Macroeconomic data used includes gross domestic product (GDP) growth rates, inflation, interest rates, balance of payments, exchange rates, asset prices and the correlation of markets within the system.

This course is intended to give participants the framework to design and implement the processes for Macro prudential Analysis. The course will focus on both the major factors and methodologies for Macro prudential Analysis. In addition to this, participants will learn about stress testing and how to take remedial action when less than satisfactory results occur.

  • Overview of Micro & Macro Prudential analysis and key banking businesses
  • Goals of financial regulation
  • Booms are followed by busts
  • Micro & Macro prudential regulation compared
  • Counter- cyclical capital charges
  • Role of contingency planning for the prevention of financial crisis
  • Role of central banks in prudential supervision
  • Macro and Micro Prudential in Europe in-depth analysis
  • European Micro & Macro Prudential Financial Regulatory framework compared
  • Marrying the macro and micro prudential dimensions of financial stability
  • Stress testing and macro prudential regulation compared
  • Rethinking Micro & Macro prudential supervision
  • Introduction to Risks and Systematic Risks
  • Why Micro-Prudential Regulation Fails?
  • Recommended framework for macro prudential analysis
  • Case study: Bank Supervision Russian Style
  • Risk Base Supervision

Upon completion of this course, the participant will, at a minimum, be able to

  • Understand the principles of macro prudential regulation and its importance.
  • Identify the macro-economic factors that affect a bank’s balance sheet
  • Examine the various models used to measure macro-economic effects
  • Develop a macro-economic model for an economy including stress testing.
  • Understand the corrective measures that can be taken when stress testing provides unsatisfactory scenarios.