Effective liquidity management and robust payment system operations are fundamental to maintaining financial stability and market confidence. This training course offers an immersive look into the critical functions performed by central banks to ensure the smooth flow of funds within the financial system. We will explore the theoretical underpinnings of liquidity provision, the design and oversight of modern payment infrastructures, and the practical challenges of managing real-time gross settlement (RTGS) systems. This program is designed for finance professionals seeking to master the operational tools and policy frameworks that underpin a resilient and efficient financial ecosystem, helping to safeguard against systemic risk.

This course goes beyond the basics to provide a comprehensive understanding of the central bank's role as a supervisor and operator of payment systems. Participants will learn how to analyze the liquidity needs of financial institutions, implement effective collateral management strategies, and understand the technical and policy considerations behind payment system innovation. By the end of this five-day course, attendees will be equipped to evaluate and enhance the operational resilience of their institution’s payment and settlement processes, and contribute to the development of a secure, transparent, and stable financial market infrastructure.

Duration: 5 days

Target Audience:

• Central bank operations and policy staff
• Financial market infrastructure managers
• Payment systems analysts and supervisors
• Treasury and collateral managers
• Risk and compliance officers
• Information technology specialists in finance
• Financial regulators and examiners
• Back office and settlement personnel
• Private sector bank managers
• Economists focused on financial markets

Objectives:

• Grasp the core principles of central bank liquidity provision
• Analyze the structure and function of modern payment systems
• Explain the role of the central bank in payment system oversight
• Implement effective collateral management and intraday credit strategies
• Understand the operational risks and controls in payment systems
• Evaluate the impact of payment system innovations on liquidity
• Formulate policies for managing payment system disruptions
• Interpret and apply international standards for financial market infrastructures
• Assess the relationship between liquidity operations and monetary policy

Course Modules: Module 1: Foundations of Liquidity and Payment Systems

• The role of a central bank in providing liquidity
• The structure of a modern payment ecosystem
• Real-time Gross Settlement (RTGS) vs. Net Settlement systems
• Understanding the payment clearing and settlement process
• The importance of intraday liquidity in financial markets

Module 2: Central Bank Payment Operations

• The operational mechanics of RTGS systems
• Managing daylight overdrafts and intraday credit
• The function of central bank accounts for financial institutions
• Liquidity forecasting and monitoring
• The role of the central bank as a settlement agent

Module 3: Collateral Management

• The purpose and types of collateral in central bank operations
• Collateral valuation, haircuts, and eligibility criteria
• Operational procedures for managing a collateral portfolio
• Legal and operational risks in collateral management
• The link between collateral and intraday liquidity

Module 4: Oversight and Regulation

• The central bank's role as a payment system supervisor
• Applying international standards, such as the PFMI
• Mitigating systemic and operational risks in payment systems
• The legal and regulatory framework for payment systems
• Compliance and enforcement mechanisms

Module 5: Risk Management in Payment Systems

• Identifying credit and liquidity risks in settlement
• Operational and cybersecurity risks in payment infrastructures
• Establishing robust business continuity and disaster recovery plans
• The role of risk models and stress testing
• Governance and internal controls for payment operations

Module 6: Payment System Technology and Innovation

• The impact of new technologies like distributed ledger technology (DLT)
• The rise of faster payments and instant payment systems
• Central bank digital currencies (CBDCs) and their implications
• Data management and analytics in payment operations
• Cybersecurity defenses for payment systems

Module 7: The Interplay of Liquidity and Monetary Policy

• How liquidity operations support monetary policy implementation
• The transmission of policy signals through payment systems
• Managing excess reserves and open market operations
• Sterilization techniques for liquidity injections
• The effect of unconventional policies on liquidity management

Module 8: Crisis Management and Financial Stability

• The central bank as a lender of last resort in a crisis
• Managing liquidity during a financial market disruption
• The role of payment systems in a crisis
• Cross-border and foreign currency payment systems
• Case studies of payment system failures and recovery

Module 9: Future Trends and Global Standards

• Harmonization of payment systems across borders
• The future of correspondent banking and cross-border payments
• Adapting to new global standards and regulations
• The evolution of liquidity management practices
• Emerging challenges and opportunities in the payment landscape

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.