Macroprudential Approach to Supervision and Managing Systemic Risk

10/30/2017 - 11/03/2017 at SARB Academy,Pretoria,South Africa

While many countries in the southern African region are implementing select elements of the Basel III Capital Adequacy Standard, there are policy and strategic demands on a number of them to complete implementation of Basel II and adopt some of the elements of Basel III. Further, several countries in the region are adopting a macroprudential approach to supervision and putting in place macroprudential regulations. In addition, many central banks in the region are setting up financial stability frameworks, which have a macroprudential dimension. With the increasing adoption of macroprudential tools as part of regulatory frameworks, the focus has now shifted to the implementation of these tools. This seminar will highlight practical implementation issues of interest to practitioners and policymakers. Particular emphasis will be put on discussing and drawing lessons from the experience of authorities around the world in implementing various elements of the
macroprudential toolbox.

The primary goal of the seminar is to make the participants aware of the inter-linkages, overlaps and similarities amongst these standards and frameworks. Aided by this awareness, officials will be better equipped to design supervisory frameworks appropriate for their jurisdictions.

The participants will have the opportunity to discuss and learn the following:
- microprudential and macroprudential supervision: concepts, history, and current thinking
- Basel II and Basel III: evolution of the supervisory reform agenda
- designing macroprudential tools – conceptual aspects and governance arrangements
- the buffers in Basel III
- countercyclical toolkit and recent experiences
- leverage requirement in Basel III
- capital requirement for systemically important banks under Basel III and Supervisory review Process (SRP) for systemically important banks under Pillar 2 of Basel II
- liquidity requirement under Basel III and liquidity risk assessment under Pillar 2 of Basel II
- microprudential stress testing under Basel II and macroprudential stress testing: concepts and case studies
- risk-based supervision (RBS), Pillar 2 of Basel II and macroprudential approach to supervision in Basel III
- presentation by participants of country experiences

The seminar will require close interaction among the participants, with the resource persons guiding the interactions.

Participants from select countries will be asked to make presentations on their country experiences. Presentations will be made by international experts, including from IMF headquarters. Participants are expected review the reading materials on the list of references.

This course will be conducted in collaboration with the South African Reserve Bank’s Academy.