Safeguarding the stability of the financial system requires more than a sound and thorough supervision of single financial institutions. The Global Financial Crisis has revealed that the mere reliance on microprudential policy tools could lead to looming systemic risks being missed or ignored. The general recognition of this gap in surveillance led to the accelerated development and implementation, throughout the world, of macroprudential policies.
Against this background, this course will first introduce the key objectives and instruments of macroprudential policy in the European context. It will then engage in more details with the implementation and use of selected macroprudential instruments (e.g. the countercyclical capital buffer, systemic risk buffers, instruments for the real estate sector, liquidity instruments). Based on their expertise in the field, the course instructors will lastly expose participants to the lessons learned from the implementation of macroprudential policies and will ask how to apply certain tools in the non-banking financial sector.
Gain an overview of the type, scope and use of macroprudential instruments and related requirements
Become familiar with the institutional framework, objectives and instruments of macroprudential policy in the European Union
Learn to apply certain macro-pru instruments in real-life cases
Understand calibration dilemmas
Become exposed to lessons learned of macroprudential policy
Draw conclusions from past experiences for the non-bank financial sector