In today's interconnected global economy, financial market stability is more critical than ever. This training course is designed to provide participants with an in-depth understanding of the operational mechanics of financial markets and the strategic frameworks for responding to periods of severe stress. We will explore the day-to-day functions of central banks and regulatory bodies in maintaining market liquidity and order, while also preparing for the unpredictable events that can trigger a crisis. This course is an essential guide for professionals who need to develop a proactive and informed approach to managing systemic risk and ensuring financial resilience.

This intensive five-day program will delve into the critical tools and policy decisions that define an effective crisis response. We will analyze historical and recent case studies to draw out key lessons in early warning, intervention, and post-crisis recovery. Participants will learn how to assess market vulnerabilities, understand the role of international cooperation, and evaluate the impact of new regulations on financial market stability. By the end of this course, you will be equipped with the knowledge to contribute to a more stable and robust financial system, both in times of calm and during periods of extreme volatility.

Duration: 5 days

Target Audience:

• Central bank financial market staff
• Bank treasury and risk managers
• Financial regulators and supervisors
• Portfolio and hedge fund managers
• Investment bank operations personnel
• Economists and policy analysts
• Credit and market risk specialists
• Government officials in finance ministries
• International financial institution staff
• Academics and researchers

Objectives:

• Understand the operational structure of key financial markets
• Analyze the role of central banks in ensuring market liquidity
• Identify early warning signs of financial market instability
• Formulate strategies for effective crisis intervention and management
• Evaluate the impact of regulatory changes on market operations
• Develop robust risk management and contingency planning frameworks
• Interpret the dynamics of market contagion and systemic risk
• Examine the tools used to restore market confidence during a crisis
• Apply lessons from historical crises to current market conditions

Course Modules: Module 1: Foundations of Financial Market Operations

• The structure and function of money, bond, and foreign exchange markets
• The role of market makers, dealers, and brokers
• Understanding clearing and settlement systems
• The flow of funds and liquidity channels
• The importance of market integrity and conduct

Module 2: Liquidity Management & Central Bank Operations

• Central bank tools for providing liquidity
• Managing liquidity during periods of market stress
• The role of open market operations in stabilizing markets
• The lender of last resort function and its applications
• Collateral policies and intraday credit

Module 3: Early Warning & Crisis Risk Assessment

• Identifying macroeconomic and financial vulnerabilities
• Using financial stability indicators and stress tests
• The role of market surveillance and data analytics
• Analyzing interconnectedness and contagion channels
• Differentiating between liquidity and solvency crises

Module 4: Financial Crises: Causes and Anatomy

• The causes of the 2008 global financial crisis
• Sovereign debt crises and their market impact
• Currency crises and exchange rate volatility
• The dynamics of asset bubbles and their bursts
• Case studies of historical market failures

Module 5: Intervention Tools & Response Strategies

• The central bank's role as a market stabilizer
• Policy options for managing a liquidity crisis
• Implementing capital controls and other macroprudential tools
• Emergency liquidity assistance (ELA) frameworks
• Communication strategies during a crisis

Module 6: International Coordination & Cooperation

• The role of international bodies like the IMF and BIS
• Cross-border crisis management and resolution
• The importance of global regulatory standards
• Managing the spillovers from international crises
• Bilateral and multilateral swap lines

Module 7: Post-Crisis Regulatory Reforms

• The rationale behind new regulatory frameworks
• The impact of Basel III and other capital requirements
• The evolution of macroprudential policy
• The regulation of over-the-counter (OTC) derivatives
• The role of central clearing counterparties (CCPs)

Module 8: The Role of Non-Bank Financial Intermediaries

• The growing importance of the shadow banking sector
• The unique risks posed by non-bank institutions
• Regulatory challenges in overseeing shadow banking
• The impact of non-bank financial intermediaries on market operations
• Policy responses to address risks from the sector

Module 9: Future Challenges & Market Resilience

• The impact of climate-related financial risks
• The challenges posed by FinTech and digital assets
• Cybersecurity threats to financial market infrastructure
• The future of liquidity provision in a new normal
• Building a more resilient and sustainable financial system

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.