Banking Supervision Regulation Financial Stability

Course Overview.
A risk-based or risk-focused supervisory regime directs supervisory attention towards those
banks, and towards those activity areas within individual banks, that generate the highest risk of
failure and potentially costly government intervention. Using the Basel Committee Core
Principles of Effective Banking Supervision as an organizational tool, this interactive course
offers a sweeping review of the primary risks faced by banks – solvency, credit, market,
operational, liquidity, compliance, reputation, strategic, and misconduct – and shows how a
preliminary identification and assessment of risks can be made using data generated from
regulatory reports. Working in groups with actual bank data, participants will utilize level, trend,
and peer group analysis to gain a deep understanding of the risk profile, condition, and
performance of sample banks, and will develop findings and conclusions that can be tested on-
site.

Financial stability can be defined as a condition in which the financial system is capable of
withstanding shocks and the unraveling of financial imbalances. Safeguarding financial stability
requires identifying the main sources of inefficiencies in the allocation of financial resources and
the mismanagement of financial risks. The aim of this course is to provide an overview of recent
theories and empirical findings that constitute the prerequisites to understanding, monitoring, and
safeguarding financial stability.

Training modules
 Bank Analysis and Supervision
 Off-site Monitoring
 On-site Examination
 Stress Testing
 Problem Bank Intervention and Resolution
 Financial Stability and Macroprudential Supervision
 Expected Credit Losses and Provisioning
 Systemic risk in banking
 Liquidity Risk Measurement and Management
 Banking crisis resolution
 Banking sector globalization and financial crisis transmission
 Unconventional monetary policy
 Macroprudential regulation and supervision
 ICT Risks, including Cybersecurity
 Big Data, Regulatory Technology, and Supervisory Technology
 Solvency analysis and profitability of bank entities
 Solvency analysis and profitability of non-bank financial institutions
 Modeling financial stability in general equilibrium
 Macroprudential policy: instrumentation and strategy
 The future of Bank supervision and financial stability

Way forward After the Training
Participants will develop a work plan through the help of facilitators that stipulates application
of skills acquired in improving their organizations. ASPM will monitor implementation progress
after the training.

Training Evaluation:

Participants will undertake a simple assessment before the training to knowledge, skills and
another assessment will be done after the training in-order to demonstrate knowledge gained
through the training.