Introduction to financial stability, systemic risk and macroprudential policy Online course
24 February 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.
- Financial stability – tasks and objectives
- Institutional setup and coordination of macroprudential policy in Germany and the EU
- Macroprudential oversight of non-banks/ the insurance sector
- Risk analyses and current risks in Germany
- Financial market infrastructure and financial stability
- Introduction to stress testing
- Developments in the real estate sector and financial stability
- Macroprudential instruments
This course is aimed at central bank officials working in the area of financial stability. Participants should have a basic 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.
Computer with microphone, camera, speakers or headphones; an up-to-date internet browser.