Course Overview

This program equips financial sector professionals with the tools, frameworks, and analytical techniques required to monitor, assess, and safeguard the stability of the financial system. It aligns with World Bank, IMF, and Basel Committee standards for financial stability analysis, macro‑prudential oversight, and crisis preparedness.

Participants will learn how to identify systemic risks, evaluate financial soundness indicators, conduct stress tests, and support policy decisions that strengthen financial sector resilience in developing and emerging economies.

2. Learning Objectives

Participants will be able to:

• Understand the structure and functioning of financial systems.

• Apply World Bank and IMF frameworks for financial sector surveillance.

• Analyze financial soundness indicators (FSIs) and macro‑financial linkages.

• Identify systemic risks, vulnerabilities, and contagion channels.

• Conduct stress testing and scenario analysis.

• Evaluate regulatory and supervisory frameworks using global standards.

• Produce financial stability reports and policy briefs aligned with international norms.

3. Target Audience

• Central bank financial stability departments

• Financial sector regulators and supervisors

• Ministry of Finance and Treasury officials

• Banking sector risk managers

• World Bank–funded project teams

• Economists and financial analysts

• Researchers in financial stability and macro‑finance

4. Detailed Course Outline

Module 1: Introduction to Financial Sector Surveillance

• Purpose and importance of FSS

• Financial stability vs. financial development

• World Bank and IMF roles in financial sector diagnostics

• Overview of the Financial Sector Assessment Program (FSAP)

• Key challenges in developing and emerging markets

Module 2: Structure & Components of the Financial System

• Banking sector, capital markets, insurance, pensions

• Non‑bank financial institutions (NBFIs)

• Payment systems and financial market infrastructure

• Financial inclusion and digital financial services

• Interconnectedness and systemic importance

Module 3: Financial Soundness Indicators (FSIs)

• Core and encouraged FSIs

• Capital adequacy, asset quality, earnings, liquidity, sensitivity to market risk

• Interpreting trends and identifying vulnerabilities

• Data sources and compilation techniques

• Using FSIs for macro‑prudential surveillance

Module 4: Macro‑Financial Linkages & Systemic Risk

• Credit cycles and leverage

• Asset price cycles and bubbles

• Exchange rate and interest rate risks

• Contagion channels and spillovers

• Early warning indicators and systemic risk dashboards

Module 5: Stress Testing & Scenario Analysis

• Types of stress tests: sensitivity, scenario, reverse

• Designing macro‑financial scenarios

• Solvency and liquidity stress testing

• Interbank contagion models

• Interpreting results for policy action

• Stress testing in low‑data environments

Module 6: Regulatory & Supervisory Frameworks

• Basel I, II, III, and IV principles

• Macro‑prudential policy tools

• Micro‑prudential supervision and risk‑based supervision

• Crisis management and resolution frameworks

• Financial safety nets: deposit insurance, lender of last resort

Module 7: Financial Markets Surveillance

• Money markets, bond markets, equity markets

• Market microstructure and volatility monitoring

• Foreign exchange market surveillance

• Capital flows and external vulnerabilities

• Market integrity and transparency

Module 8: Financial Inclusion, Innovation & Risks

• Digital financial services (DFS) and fintech

• Mobile money and digital credit risks

• Cybersecurity and operational resilience

• Consumer protection and market conduct

• Balancing innovation with stability

Module 9: FSS in World Bank & IMF Programs

• Financial Sector Assessment Program (FSAP) methodology

• Financial Stability Reports (FSRs)

• Financial development indicators (FDIs)

• FSS requirements in lending operations and diagnostics

• Case studies from World Bank–supported reforms

Module 10: Practical Exercises & Capstone Project

• Hands‑on compilation of FSIs

• Conducting a simplified stress test

• Building a systemic risk dashboard

• Capstone: Prepare a Financial Stability Assessment for a simulated country

• Presentation to a panel (simulated central bank/World Bank review)

5. Training Methodology

• Expert‑led lectures and guided discussions

• Hands‑on data analysis and modelling exercises

• Case studies from World Bank, IMF, and global financial crises

• Group work and scenario‑based simulations

• Practical sessions on FSIs and stress testing

• Capstone project with peer and instructor feedback

6. Deliverables & Outputs

Participants will receive:

• A Financial Sector Surveillance Toolkit (frameworks, templates, datasets)

• FSI compilation and stress testing templates

• Access to macro‑financial data and analytical tools

• Capstone project report and presentation

• Certificate of Completion from Regewall Training Institute