Financial stability – systemic risk, macroprudential policy and stability analysis Level II course
05 May 2023
In its capacity as Germany’s central bank, the Deutsche Bundesbank has a legal mandate and an inherent interest in ensuring that the financial and monetary system is stable, and remains so. The aim here is to provide a solid foundation for sustainable future economic growth as a precondition for the effective implementation of monetary policy. Furthermore, the Bundesbank’s duty to contribute to the safeguarding of financial stability is explicitly enshrined in the Financial Stability Act.
As part of its macroprudential mandate, the Bundesbank regularly conducts analyses to identify any potential risks to the stability of the financial system. To this end, it monitors financial intermediaries, financial markets and market infrastructures, as well as any interconnections between them, using system-wide data. These analyses are geared to identifying systemic risks, i.e. structural and cyclical vulnerabilities, which constitute a threat to the stability of the financial system.
In order to gain macroprudential insights, it is essential to take into account spillovers within and across different sectors of the financial system as well as any feedback effects arising in the financial system due to macroeconomic developments. In addition, the Bundesbank investigates the (potential) effects of macroprudential instruments so as to calibrate these ex ante and evaluate the effectiveness of enacted macroprudential policy steps ex post.
The course aims to shed light on the Deutsche Bundesbank’s role in the macroprudential policy cycle and its approach to financial stability analysis. Participants will gain a thorough understanding of financial stability, systemic risk and macroprudential policy. Where possible, the course will include both theoretical and practical components.
- Risk analyses and current risks in Germany
- Macroprudential stress testing of investment funds
- Macroprudential surveillance of systemically important institutions
- Early warning models and macroprudential surveillance of cyclical systemic risk
- Climate change and its financial stability implications
- Financial stability risks from real estate (mortgage and commercial real estate)
- Evaluation of macroprudential measures
This course is aimed at central bank officials working in the area of financial stability. Participants should have a good understanding of the surveillance and analysis of systemic risk and macroprudential policy. Input from participants on current developments in their home countries is appreciated. The course may also be of interest to staff working in other central bank areas related to financial stability, such as banking supervision, monetary policy or payment systems.
A nominating person is mandatory for the participation in our in-person courses.