International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank

 
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Centre for Technical Central Bank Cooperation
International Central Banking
Courses 2018

                                                Foto: Jan Eckert
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Centre for Technical Central Bank Cooperation
International Central Banking
Courses 2018
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Content

Foreword ............................................................................................................................................................4
Introduction.........................................................................................................................................................6
Our team.............................................................................................................................................................7
Our range of international central banking courses...............................................................................................8
Annual overview of our courses.........................................................................................................................12

Monetary policy...................................................................................................................................... 14
     Macroeconomic analysis and forecasting......................................................................................................16
     Monetary policy frameworks........................................................................................................................17
     Issues in monetary policy implementation.....................................................................................................18
     Monetary policy implementation using an interest steering approach............................................................20
     Foreign reserve management........................................................................................................................21
     Monetary policy implementation in the Eurosystem......................................................................................22
     Analytical tools for monetary policy..............................................................................................................23
     Monetary policy implementation..................................................................................................................71
	  In cooperation with the Joint Vienna Institute and the Oesterreichische Nationalbank

Banking supervision................................................................................................................................. 24
     Stress tests – methods and areas of application.............................................................................................26
     Banking supervision within the Basel framework – Course level I...................................................................27
     On-site banking supervision..........................................................................................................................28
     Banking supervision within the Basel framework – Course level II..................................................................29
     Banking supervision within the Basel framework...........................................................................................70
	  In cooperation with the Joint Vienna Institute and the Oesterreichische Nationalbank

Financial and monetary system................................................................................................................ 30
     Digital financial innovations..........................................................................................................................32
     Financial stability, systemic risk and macroprudential policy – Course level I...................................................33
     Recovery and resolution with a focus on credit institutions............................................................................34
     Financial stability, systemic risk and macroprudential policy – Course level II..................................................36
     Understanding the monetary and financial system........................................................................................37
     Developing financial markets........................................................................................................................39
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Cash management and payment systems................................................................................................ 40
     Current challenges for cash management.....................................................................................................42
     Cash management and combating counterfeit money..................................................................................43
                                                                                 ed
                                                                    cancell
     Combating counterfeit money by the National Analysis Centre.....................................................................44
     Payment and securities settlement systems...................................................................................................45
     Combating money laundering......................................................................................................................46

Good governance.................................................................................................................................... 48
     Economic education – the role of central banks............................................................................................50
     Public procurement......................................................................................................................................51
     Auditing internal services and support functions at a central bank.................................................................52
     Data sharing.................................................................................................................................................53
     Operational risk management, continuity management and crisis management............................................54
     Human resources management....................................................................................................................55
     Public relations.............................................................................................................................................56
     Central bank governance..............................................................................................................................57
     Design and application of a quality assurance and improvement programme (QAIP) – best practices.............58
     Document management...............................................................................................................................59
     Controlling at central banks..........................................................................................................................61

Statistics.................................................................................................................................................. 62
     Big data and central banking........................................................................................................................64
     Seasonal adjustment of economic data.........................................................................................................65
     Price and volume indices in official statistics – theory and practice.................................................................66

Courses in cooperation with the Joint Vienna Institute and the Oesterreichische Nationalbank............... 68
Banking supervision within the Basel framework................................................................................................70
Monetary policy implementation........................................................................................................................71

Course impressions............................................................................................................................................72
Administrative information.................................................................................................................................74
Inside the Deutsche Bundesbank........................................................................................................................76
Our venues........................................................................................................................................................78
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Foreword
   Page 4

   Foreword

                                             In 2017, the Bundesbank celebrated its 60th anniver-
                                             sary under the motto “Committed to a stable currency”.
                                             This theme also reflects our awareness that it is not
                                             sufficient to keep just our own house in order. As we
                                             share responsibility for the euro and for ensuring a stable
                                             financial system, we need to look beyond our own
                      Photo: DGaby Gerster

                                             borders, especially − but not only − within Europe.

                                             In fact, there is a long tradition of cooperation between
                                             central banks. Its origins date back to the first half
                                             of the 20th century. At that time, there was growing
                                             recognition that autonomous monetary policy deci-
Dr Jens Weidmann                             sions have side effects on economic conditions in
President
Deutsche Bundesbank                          other countries (policy spillovers), which exacerbate
                                             existing imbalances and in doing so can increase the
                                             probability of crises. Conversely, living as we do in a
                                             time of increasingly interconnected global markets,
                                             there is little prospect of tackling the current chal-
                                             lenges single-handedly anymore, as the response to
                                             the economic and financial crisis has shown.

                                             Over time, various types of institutionalised coopera-
                                             tion have developed, eg in the committees of the Bank
                                             for International Settlements or through membership
                                             of the International Monetary Fund. In addition, the
                                             role played by informal dialogue between central banks
                                             at a lower level should not be underestimated. Not
                                             only does this help broaden the shared knowledge
                                             base and exchange experience, it also contributes to
                                             building mutual understanding at all levels of the hier-
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Foreword
                                                                                     Page 5

archy. This type of environment is particularly suitable
for fostering a shared understanding of “stability” in
the face of increasingly complex tasks.

Next year our international central banking courses

                                                                                        Photo: Frank Rumpenhorst
will once again provide a platform for our colleagues
at central banks outside the European Union and the
traditional group of industrial countries, in particular,
to exchange ideas and experiences. Depending on the
target group, we would like not only to help newcom-
ers “get on board” in the world of central banking,
but also to facilitate an in-depth exchange of ideas on     Dr Andreas Dombret
                                                            Member of
cutting edge topics through expert panels.
                                                            the Executive Board
                                                            Deutsche Bundesbank

The monetary policy and regulatory response to the
economic and financial crisis will once again feature
prominently in the programme, alongside both tradi-
tional central banking topics related to our core busi-
ness activities and good governance. Furthermore,
the impact of technological development on the
world of central banking will continue to be a major
theme on the current agenda. Following this year’s
expert panel on blockchain, we will round off our
course programme next year with expert panels on
digital financial innovation and data sharing.

We hope that our programme for 2018 will be of
interest to you and we would be delighted to wel-
come you to the Bundesbank next year for one of our
international central banking courses.
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Introduction
   Page 6

   Introduction

The Deutsche Bundesbank has been working with                the Centre for Technical Central Bank Cooperation at
central banks worldwide since its foundation in 1957.        the Central Office in Frankfurt.
The aim of central bank cooperation is to promote the
creation and development of central banking systems          All international central banking courses are held in
appropriate to a market economy, to foster the pro-          English. Each of these courses is open to individuals at
cess of monetary reform, and to enhance economic             different stages of their professional career, depending
and financial stability in our partner countries. Training   on the topic and type of the event. Central bank staff
programmes and advisory assistance for executives            from all our partner countries are cordially invited to
and other members of staff of foreign central banks          register as participants.
serve as a vehicle for exchanging knowledge and ex-
perience. The topics featured cover the entire range of      The international central banking courses take place
economic, operational and legal instruments used in          in Frankfurt, Munich, Mainz, Eltville and Vienna. The
modern central banking.                                      Bundesbank provides accommodation to all participants
                                                             for the duration of the course. Meals taken with other
The Bundesbank adopts a variety of approaches to             course members and excursions to places of interest
enhance this cooperation, including                          help to create an international atmosphere based on
                                                             mutual trust which, in turn, fosters an open exchange
– sending experts or project support to the countries        of ideas.
  concerned
– arranging study visits to the Bundesbank to discuss        Details of the courses planned for 2018 can be found
  specific issues with in-house experts                      on the following pages.
– running course programmes in Germany and
  abroad.                                                    Finally, we encourage you to visit the Deutsche
                                                             Bundesbank’s website where you can watch our video
All these activities, which draw on the entire resources     on Technical Central Bank Cooperation:
of the Bundesbank, are organised and coordinated by          www.bundesbank.de/tcbc_film
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Our team
                                                                                                                                   Page 7

   Our team

                                                                                                                           Photo: Bert Bostelmann

Back row (left to right):
Jens Fuhrmann, Daniel Januschka, Dr Sonja Juko, Jan Eckert, Jörn Flegler, Dr Martin Pontzen
Middle row (left to right):
Anika Hollmann, Ralf Hannemann, Silke Frühklug, Maximilian Paulus, Malte Vieth, Katja Hofmann
Front row (left to right):
Christoph Stute, Christa Lampe, Birgit Engelmann, Lisa Bauscher, Martin Dinkelborg (Director), Claudia Brune (Deputy Director), Dr Martine
Niederkorn, Silke Schrupp

At the Deutsche Bundesbank’s Centre for Technical                         Our team would be pleased to welcome you to one
Central Bank Cooperation, a dedicated team is re-                         of our international central banking courses due to be
sponsible for organising international central banking                    held mostly in Frankfurt in 2018.
courses. It not only plans and prepares the courses
but also provides advice and support for our foreign                      The course organisation team:
guests during their visits to the Deutsche Bundesbank.                    internationalcourses@bundesbank.de
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Our range of international central banking courses
  Page 8

  Our range of international
  central banking courses
Course level I
Content                                                   Our level I courses in 2018
Level I courses cover core aspects of central banking     – Banking supervision within the Basel framework –
or supervision with the aim of offering a general over-     Course level I
view and transmitting basic knowledge in major central    – Financial stability, systemic risk and macroprudential
banking topics. They also provide a platform for dis-       policy – Course level I
cussion and give participants an opportunity to ex-       – Monetary policy frameworks
change views and ideas with central bankers from          – Data Sharing
around the world.                                         – Monetary policy implementation using an interest
                                                            steering approach
The various lectures, which are held by Bundesbank        – Understanding the monetary and financial system
experts and external specialists, are supplemented        – Seasonal adjustment of economic data
by workshops or exercises and the possibility for dis-    – Price and volume indices in official statistics –
cussion.                                                    theory and practice
                                                          – Banking supervision within the Basel framework
Target group                                                in cooperation with the Joint Vienna Institute
The courses are primarily targeted at young profes-         and the Oesterreichische Nationalbank”
sionals with work experience of up to two years in the    – Monetary policy implementation
designated central banking field or a central bank area     in cooperation with the Joint Vienna Institute
that is related to the topic of the course.                 and the Oesterreichische Nationalbank”
International Central Banking Courses 2018 - Centre for Technical Central Bank Cooperation - Deutsche Bundesbank
Our range of international central banking courses
                                                                                                        Page 9

Course level II
Content                                                      Our level II courses in 2018
Courses focus on specific subjects related to central        – On-site banking supervision
bank tasks. These topics will be treated at an ad-           – Macroeconomic analysis and forecasting
vanced level and shall facilitate an in-depth analysis.      – Cash management and combating counterfeit
They are also designed to enable participants to ex-           money
change their views and to deepen and broaden                 – Financial stability, systemic risk and macroprudential
knowledge or to generate new opinions and ideas.               policy – Course level II
                                                             – Data Sharing
Courses involve lectures, group work, case studies or        – Payment and securities settlement systems
discussions. The courses require an active contribution      – Foreign reserve management
by participants. The lectures will be held by Bundes-        – Monetary policy implementation in the Eurosystem
bank specialists and external experts.                       – Banking supervision within the Basel framework –
                                                               Course level II
Target group                                                 – Human resources management
The courses are primarily directed at experienced em-        – Public relations
ployees with more than two years of work experience          – Central bank governance
in the respective central banking field. Participants are    – Analytical tools for monetary policy
expected to have a basic expertise and to be familiar        – Developing financial markets
with general aspects in the working area which will be       – Controlling at central banks
the focus of the course.                                     – Combating money laundering
                                                             – Banking supervision within the Basel framework
                                                               in cooperation with the Joint Vienna Institute
                                                               and the Oesterreichische Nationalbank”
Our range of international central banking courses
  Page 10

Expert panels
Content                                                   Our expert panels in 2018
Expert panels are designed to provide central bank        – Stress tests – methods and areas of application
employees with a discussion platform to share their       – Current challenges for cash management
experience and knowledge about very specific central      – Digital financial innovations
banking topics.                                           – Economic education – the role of central banks
                                                          – Big data and central banking
Participants are expected to actively contribute to the   – Public procurement
discussion. Experts are requested to submit a paper or    – Auditing internal services and support functions at
a presentation in advance to be presented during the        a central bank
panel. Expert panels require a considerable amount of     – Combating counterfeit money by the National
active participation, high proficiency in English and a     Analysis Centre
true interest in engaging in discussions with central     – Issues in monetary policy implementation
bankers from around the world.                            – Recovery and resolution with a focus on credit
                                                            institutions
Target group                                              – Operational risk management, continuity
Expert panels are aimed exclusively at experienced          management and crisis management
employees, ideally with work experience of more than      – Design and application of a quality assurance and
five years. Participants should have extensive and de-      improvement programme (QAIP) – best practices
tailed knowledge of the respective subject area. While    – Document management
the individual topics have already been set, the needs
of specific groups of participants can also be taken
into consideration.
Our range of international central banking courses
                                                                                                             Page 11

Ad hoc expert panels
In addition, the Deutsche Bundesbank’s Centre for                  If you have a suggestion for a possible ad hoc expert
Technical Central Bank Cooperation will organise ad hoc            panel, please send us your proposal by e-mail:
expert panels on topics of special interest that arise
during the course of the year. These ad hoc expert                 internationalcourses@bundesbank.de
panels will be announced on our website and organ-
ised in the same way as our regular expert panels.

                                                                 Content                             Target group

 Course level I               core aspects of central bank       lectures, exercises, discussions    young professionals with work
                              tasks                              or workshops                        experience up to two years

 Course level II              specific aspects of central bank   lectures, exercises, discussions,   experienced professionals with
                              tasks at an advanced level         workshops, group work, case         work experience of more than
                                                                 studies                             two years

 Expert panel                 specific aspects of central bank   expert discussions, case studies/   experienced professionals in a
                              tasks at an advanced level         country experience presented        specific field of central banking
                                                                 by panel participants, hands-on     ideally with work experience of
                                                                 exercises                           more than 5 years
Annual overview of our courses
 Page 12

 Annual overview of our courses

Date             Title                                                                    Course type            Venue       Page

January

15 – 17 Jan      Stress tests – methods and areas of application                          Expert panel           Frankfurt   26

22 – 26 Jan      Banking supervision within the Basel framework – Course level I          Level I                Frankfurt    27

22 – 26 Jan      Banking supervision within the Basel framework*                          Level I and Level II   Vienna       70

29 – 31 Jan      Current challenges for cash management                                   Expert panel           Frankfurt    42

February

5 – 9 Feb        On-site banking supervision                                              Level II               Munich       28

19 – 21 Feb      Digital financial innovations                                            Expert panel           Eltville     32

19 – 21 Feb      Macroeconomic analysis and forecasting                                   Level II               Frankfurt    16

26 Feb – 2 Mar   Cash management and combating counterfeit money                          Level II               Frankfurt    43

March

12 – 14 Mar      Economic education - the role of central banks                           Expert panel           Frankfurt    50

12 – 16 Mar      Monetary policy implementation*                                          Level I                Vienna       71

19 – 23 Mar      Financial stability, systemic risk and macroprudential policy - Course   Level I                Frankfurt    33
                 level I

April

9 – 11 Apr       Big data and central banking                                             Expert panel           Frankfurt    64

16 – 20 Apr      Monetary policy frameworks                                               Level I                Frankfurt    17

23 – 25 Apr      Public procurement                                                       Expert panel           Eltville     51

24 – 26 Apr      Auditing internal services and support functions at a central bank       Expert panel           Frankfurt   52

May

14 – 16 May      Issues in monetary policy implementation                                 Expert panel           Frankfurt    18

14 – 17 May      Combating counterfeit money by the National Analysis Centre              Expert panel           Mainz        44    cancelled
23 – 25 May      Recovery and resolution with a focus on credit institutions              Expert panel           Frankfurt    34

June

4 – 8 June       Financial stability, systemic risk and macroprudential policy –          Level II               Frankfurt    36
                 Course level II

11 –15 June      Data sharing                                                             Level I and Level II   Frankfurt    53

18 – 22 June     Monetary policy implementation using an interest steering approach       Level I                Frankfurt    20
Annual overview of our courses
                                                                                                                        Page 13

 Date                Title                                                                   Course type     Venue        Page

 July

 2 – 6 July          Payment and securities settlement systems                               Level II        Frankfurt    46

 16 – 20 July        Foreign reserve management                                              Level II        Frankfurt     21

 23 – 27 July        Understanding the monetary and financial system                         Level I         Frankfurt     37

 August

 6 – 10 Aug          Monetary policy implementation in the Eurosystem                        Level II        Frankfurt     22

 14 – 16 Aug         Operational risk management, continuity management and crisis           Expert panel    Frankfurt     54
                     management

 27 – 31 Aug         Banking supervision within the Basel framework – Course level II        Level II        Frankfurt     29

 27 – 31 Aug         Human resources management                                              Level II        Eltville      55

 September

 17 – 21 Sep         Public relations                                                        Level II        Frankfurt     56

 October

 8 – 12 Oct          Seasonal adjustment of economic data                                    Level I         Frankfurt     65

 15 – 19 Oct         Central bank governance                                                 Level II        Frankfurt     57

 22 – 24 Oct         Design and application of a quality assurance and improvement           Expert panel    Frankfurt     58
                     programme (QAIP) – best practices

 24 – 26 Oct         Document management                                                     Expert panel    Frankfurt     59

 29 – 31 Oct         Analytical tools for monetary policy                                    Level II        Frankfurt     23

 November

 5 – 9 Nov           Developing financial markets                                            Level II        Frankfurt     39

 12 – 16 Nov         Controlling at central banks                                            Level II        Frankfurt     61

 26 – 30 Nov         Price and volume indices in official statistics – theory and practice   Level I         Frankfurt     66

 December

 3 – 7 Dec           Combating money laundering                                              Level II        Frankfurt     46

 10 – 14 Dec         Payment and securities settlement systems                               Level II        Frankfurt     45

* in cooperation with the Joint Vienna Institute and the Oesterreichische Nationalbank
Monetary
Workshop    policy

                     Photo: Dieter Rosen
Monetary policy
                                                                                                                               Page 15

   Content

Macroeconomic analysis and forecasting ............................................................................................... 16
19 – 21 February 2018 (deadline for application: 29 December 2017)

Monetary policy frameworks................................................................................................................... 17
16 – 20 April 2018 (deadline for application: 23 February 2018)

Issues in monetary policy implementation............................................................................................... 18
14 – 16 May 2018 (deadline for application: 23 March 2018)

Monetary policy implementation using an interest rate steering approach.............................................. 20
18 – 22 June 2018 (deadline for application: 27 April 2018)

Foreign reserve management.................................................................................................................. 21
16 – 20 July 2018 (deadline for application: 25 May 2018)

Monetary policy implementation in the Eurosystem................................................................................ 22
6 – 10 August 2018 (deadline for application: 15 June 2018)

Analytical tools for monetary policy ....................................................................................................... 23
29 – 31 October 2018 (deadline for application: 7 September 2018)

Please apply online at www.bundesbank.de/courseregistration
Monetary policy
   Page 16

Course level II

   Macroeconomic analysis and forecasting

Duration                                                     Content
19 – 21 February 2018 (3 days)                               – Analysis and forecast of the international
                                                               environment
Deadline for application                                     – Short-term macroeconomic projections
29 December 2017                                             – Macroeconometric model of the Bundesbank
                                                             – Macroeconomic forecasting at the Bundesbank
Venue                                                        – Simulation exercise and scenario analysis with
Frankfurt                                                      macroeconometric models
                                                             – Potential output and medium term projections
Objective                                                    – Analysis and projections of labour market and
Monetary policy decisions require a thorough analysis          wage developments
of the national and international macroeconomic en-          – Analysis of the housing market and projections of
vironment. Central banks have to develop sophisticated         house prices
analytical skills in order to model complex macroeconomic    – Analysis of price developments and inflation
relationships and forecast their underlying potential          forecasting
to cause risks to price stability. This 3-day course pro-    – Research projects related to macroeconomic
vides an overview of the modelling and forecasting             forecasting
approach used by the Deutsche Bundesbank in the
context of the monetary policy decision-making pro-          Target group
cess in the euro area. The focus is on the practical         Junior to mid-level central bank officials working in
aspects of the macroeconomic analysis. Bundesbank            the area of macroeconomic analysis.
experts will present and discuss key fundamentals of their
regular analytical work. The programme will begin with       Please note:
a general discussion of the macroeconometric models          The course does not cover topics related to the deeper
and forecasting tools used by Bundesbank experts,            analysis of monetary and financial developments. There
distinguishing between short-term and medium-term            is a separate course on this (see course on “Analytical
analysis. The course will then cover specific analytical     tools for monetary policy”; page 23). What is more,
approaches that Bundesbank staff use to assess develop-      the course does not provide an introduction to econo-
ments in the selected segments of the economy such           metrics or specific modelling techniques. Potential
as the labour and the housing market.                        candidates who wish to apply for the course should
                                                             have a sound understanding of basic econometric
                                                             methods.
Monetary policy
                                                                                                        Page 17

Course level I

  Monetary policy frameworks

Duration                                                   Content
16 – 20 April 2018 (5 days)                                – Review of theoretical basics of monetary policy
                                                           – Key elements of monetary policy frameworks
Deadline for application                                   – Consistency and conflict of interests
23 February 2018                                           – Policy strategy vs implementation
                                                           – Monetary policy mandates and objectives
Venue                                                      – Monetary policy anchors / intermediate targets
Frankfurt                                                  – Policy analysis and decision making: rules vs
                                                             discretion
Objective                                                  – Operational targets and monetary policy
Central banks conduct monetary policy in the context         instruments
of a country-specific policy framework. Despite their      – The role of monetary policy communication
particularities, monetary policy frameworks consist of
a common set of key elements. This 5-day course aims       Target group
to provide an introduction to monetary policy frame-       The content level of the course is targeted at junior
works and an overview of their basic features. After       central bankers with little to no knowledge and work
the course, participants should have a broad under-        experience in the area of monetary policy who are
standing of the key aspects of monetary policy frame-      interested in getting a general overview of monetary
works and be familiar with major issues related to         policy frameworks and gaining a basic understanding
them. For this purpose, key elements that central          of their key elements and issues related to them. The
banks have to establish in order to set up a monetary      course is meant mainly for staff who have only re-
policy framework will be discussed individually to allow   cently started working in the area of monetary policy.
for a deeper reflection of relevant issues. The content    It may also be of interest for staff working in other
will be presented through a mixture of lectures intro-     central bank areas that are somehow related to mon-
ducing key concepts. Lectures will be complemented         etary policy such as communication, financial stability,
by moderated workshops in the form of case studies         banking supervision, payment systems or statistics.
and group discussions in which participants are ex-
pected to contribute actively.
Monetary policy
   Page 18

Expert panel

   Issues in monetary policy implementation

Duration                                                     – Liquidity analysis and forecasting
14 – 16 May 2018 (3 days)                                      • How has your central bank improved the
                                                                 liquidity analysis and forecasting over time?
Deadline for application                                       • What specific techniques can you recommend to
23 March 2018                                                    produce reliable forecasts?
                                                             – Optimal design of monetary policy instruments
Venue                                                          • What is the rationale behind the choice of
Frankfurt                                                        monetary policy instruments?
                                                               • What were the arguments to opt for specific
Objective                                                        design features of individual policy instruments?
Monetary policy implementation is not static. It has to        • What are – based on your central bank’s
adjust to changes in the policy environment (eg develop-         experience – advantages and disadvantages of
ments in the financial sector) and the evolution of the          specific design features?
monetary policy stance that may cause new issues               • How does your central bank assess and ensure
and create challenges for policy implementation. In              consistency in the operational framework?
order to ensure a smooth transmission of their mone-           • How does your central bank deal with external
tary policy stance into the financial and the real sector,       criticism (eg of counterparties) regarding its
central banks have to regularly review and assess the            monetary policy instruments?
functionality and effectiveness of their operational         – Effectiveness of the operational framework and
frameworks and work out ways to address weaknesses             changes to monetary policy instruments
in their implementation approach. Against this back-           • How does your central bank monitor and assess
ground, central banks are permanently faced with the             the effectiveness of the operational framework/
challenge of selecting and calibrating the way in                individual monetary policy instruments?
which they implement their monetary policy without             • What kind of internal analysis is prepared on a
becoming erratic, inconsistent and unpredictable in              regular basis to review the need for adjustments?
their actions. The expert panel aims to bring together         • What measures has the central bank introduced
central bank experts from around the world to discuss            to make policy implementation more effective?
current issues and challenges related to the implemen-         • What major changes has your central bank
tation of monetary policy and to exchange views, expe-           introduced in order to promote the effectiveness
riences and innovative ideas on how to deal with them.           of monetary policy instruments?
                                                               • What were the main reasons for these changes?
Content                                                        • How were operational changes introduced and
The specific topics that will be covered in the expert           phased in?
panel depend largely on the input of participants. The         • How did the central bank involve counterparties
list below contains topics that expert panel participants        in the process or prepare them for upcoming
may choose to present in a case study.                           changes?
Monetary policy
                                                                                                     Page 19

Target group                                            lar liquidity analysis and the management and the de-
The expert panel is targeted at mid and senior-level    sign of operational frameworks. Participants will be
central bankers who are directly involved and have at   expected to contribute actively to the panel by pre-
least 5 years of work experience in monetary policy     senting a short country case study focusing on one
implementation. Candidates should have an extensive     specific topic that offers useful insights and illuminat-
knowledge and sound understanding of different          ing ideas for other central banks.
sub-dimensions of policy implementation, in particu-

                                                                                                                    Photo: Jan Eckert
Monetary policy
   Page 20

Course level I

   Monetary policy implementation using
   an interest rate steering approach
Duration                                                    Content
18 – 22 June 2018 (5 days)                                  – Review of key elements of monetary policy
                                                              frameworks
Deadline for application                                    – Operational framework and monetary policy
27 April 2018                                                 instruments
                                                            – Interest rate corridor and design of standing
Venue                                                         facilities
Frankfurt                                                   – Central bank liquidity: analysis and management
                                                            – Interbank (money) market and central bank open
Objective                                                     market operations: role and functioning
The financial crisis and the introduction of quantitative   – Reserve requirements
easing have led numerous central banks to adopt an
implementation approach that relies on an active use        Target group
of their balance sheets. Despite the operational            The content level of the course is targeted at junior
changes that have taken place in recent years, interest     central bankers with little to no prior knowledge and
rate steering remains the fundamental underlying            work experience related to the course topic who are
concept of monetary policy implementation, not only         interested in gaining a broad overview and a general
in developed economies. Under this approach, central        understanding of how monetary policy is implemented
banks manage liquidity and their balance sheet in a         using an interest rate steering approach. The course is
rather passive and market-oriented way in order to          primarily designed for staff working in the area of
steer the interest rate level in the economy. This 5-day    monetary policy, but could also be of interest for staff
course aims to provide an overview and a basic under-       who work in central bank communication.
standing of monetary policy implementation following
an interest rate steering approach. After the course,
participants should have a good general understand-
ing of how central banks steer interest rates and the
key issues related to this approach. The content will be
presented through a mixture of lectures introducing
basic concepts and fundamental aspects. Lectures will
be complemented by moderated workshops in the
form of case studies, group discussions and simula-
tions in which participants are expected to contribute
actively.
Monetary policy
                                                                                                      Page 21

Course level ll

  Foreign reserve management

Duration                                                  Content
16 – 20 July 2018 (5 days)                                – Management of the ECB’s and the Bundesbank’s
                                                            foreign reserves
Deadline for application                                  – Reserve management service offered by the
25 May 2018                                                 Bundesbank
                                                          – Level and adequacy of foreign reserves
Venue                                                     – Financial instruments used in reserve management,
Frankfurt                                                   eg repos, gold deposits and financial derivatives
                                                          – Portfolio management
Objective                                                 – Investment guidelines and strategic benchmarking
In recent years, foreign reserve managers have been       – Market and credit risk control
challenged by low or negative interest rates. At the      – Performance measurement
same time, counterparty and liquidity risk have in-       – Gold management
creased.
                                                          Target group
This course aims to explain the current reserve manage-   The course is aimed at employees responsible for re-
ment policies and practices of the Bundesbank and         serve management at the policy making, operational
the ECB. Special attention will be paid to portfolio      or risk control level. Participants should have a sound
management and diversification, as well as the attrac-    knowledge of portfolio management to be able to
tiveness of the various financial instruments used in     share their experience and contribute actively to dis-
reserve management. The course will also focus on         cussions.
risk management issues and benchmarking.

To broaden the perspective, participants will be asked
to make an active contribution to discussions and to
share their national experience of selected aspects
relating to reserve management.
Monetary policy
   Page 22

Course level II

   Monetary policy implementation in the
   Eurosystem
Duration                                                     the context of monetary union. The course also pro-
6 – 10 August 2018 (5 days)                                  vides a platform for participants to reflect on and dis-
                                                             cuss how monetary policy implementation in the euro
Deadline for application                                     area differs from the way it is done in their countries. The
15 June 2018                                                 content will be presented through a mix of lectures
                                                             that are supplemented by group discussions.
Venue
Frankfurt                                                    Content
                                                             – Macroeconomic and institutional context
Objective                                                    – General monetary policy framework
While the ultimate objectives of monetary policy are         – Liquidity analysis and liquidity management in the
often fairly similar, central banks diverge in how they        monetary union
operationalise and implement their monetary policy           – General operational framework and set of policy
goal(s). The specification of operational frameworks           instruments
and, more particularly, the choice of the operational        – Evolution and use of non-standard measures
target, the selection and the design of policy instruments   – Open market operations and associated
as well as the specific procedures and methods that            procedures
central banks apply reveal significant differences.          – Counterparty monitoring
Despite increased efforts to provide extensive public        – Risk control framework
information and explain central bank actions in a            – Collateral management
transparent way, it often remains difficult for outsiders
to fully understand how monetary policy is imple-            Target group
mented in practice and the motives that explain a cen-       The content level of the course is targeted at mid-
tral bank’s operational decisions.                           level central bankers working in the area of monetary
                                                             policy implementation who are interested in gaining
Against this background, this 5-day course aims to           an overview and a deeper understanding of how
offer deeper insights and explain how monetary policy        monetary policy is implemented in the context of
is implemented within the Eurosystem, ie the system          European monetary union. Candidates should have a
of central banks responsible for the single monetary         sound general understanding of key concepts as well
policy of the euro area. The focus of individual course      as the various tasks related to monetary policy imple-
sessions will be on key aspects of monetary policy im-       mentation and should have practical work experience
plementation in the Eurosystem, ie the general opera-        of a minimum of two years in that area (eg design of
tional framework, the use and evolution of individual        operational framework and monetary policy instruments,
policy instruments and the procedures applied within         liquidity analysis, carrying out open market operations).
Monetary policy
                                                                                                       Page 23

Course level II

  Analytical tools for monetary policy

Duration                                                  Content
29 – 31 October 2018 (3 days)                             – Money market analysis
                                                          – Monetary analysis
Deadline for application                                  – Capital markets analysis
7 September 2018                                          – Monetary transmission analysis
                                                          – Current research projects related to monetary
Venue                                                       policy
Frankfurt
                                                          Target group
Objective                                                 Junior to mid-level central bank officials working in the
Monetary policy decision-making requires a thorough       area of monetary analysis or financial market analysis.
analysis of economic, monetary and financial develop-
ments. Central banks have to construct an analytical      Please note:
framework, ie a systematic and structured analysis        The course does not cover topics related to broader
encompassing all aspects that are essential to support    macroeconomic analysis. There is a separate course
the decision-making process and the formulation of a      on this (see course on “Macroeconomic analysis and
monetary policy stance. The analytical framework          forecasting”; page 16). What is more, the course
should be based on and tailored to meet the require-      does not provide an introduction to econometrics or
ments of the underlying monetary policy strategy. This    specific modelling techniques. Potential candidates
3-day course provides an overview of various analytical   who wish to apply for the course should have a sound
tools used by the Deutsche Bundesbank in the context      understanding of macroeconomic theory and econo-
of the monetary policy decision-making process in the     metric methods.
euro area. The focus is on the practical aspects of the
monetary policy analysis. Bundesbank experts will
present and discuss key fundamentals of their regular
analytical work. The programme covers specific ap-
proaches that Bundesbank staff use to monitor and
assess developments in the money market, in the area
of money and credit, in capital markets as well as in
relation to the monetary transmission process.
Banking
Workshop   supervision

                         Photo: Justin Lightley
Banking supervision
                                                                                                                                  Page 25

   Content

Stress tests – methods and areas of application....................................................................................... 26
15 – 17 January 2018 (deadline for application: 1 December 2017)

Banking supervision within the Basel framework – Course level I............................................................ 27
22 – 26 January 2018 (deadline for application: 8 December 2017)

On-site banking supervision..................................................................................................................... 28
5 – 9 February 2018 (deadline for application: 22 December 2017)

Banking supervision within the Basel framework – Course level II........................................................... 29
27 – 31 August 2018 (deadline for application: 6 July 2018)

Please apply online at www.bundesbank.de/courseregistration
Banking supervision
   Page 26

Expert panel

   Stress tests –
   methods and areas of application
Duration                                                     Content
15 - 17 January 2018 (3 days)                                – Basic principles of stress testing
                                                             – Application of stress tests at banks
Deadline for application                                     – Stress tests as an information source for
1 December 2017                                                supervisors
                                                             – The Bundesbank’s stress tests
Venue                                                        – Macro stress tests
Frankfurt                                                    – EU-wide stress testing exercises

Objective                                                    Target group
The importance of comprehensive risk management              The course is aimed at experts in banking supervision
and its constant ongoing development has been                or financial stability with a sound background in stress
made abundantly clear by recent developments in the          testing. They should have a thorough understanding
financial markets. Stress tests are one of the instruments   of the stress testing approaches used at their central
used by banks as well as by central banks and super-         bank, and they should be prepared to share their
visory authorities to detect potential vulnerabilities.      knowledge with the other participants in the group.

Consequently, banks have clearly expanded and re-
fined their methodology in this area. Banks are called
upon, not least by supervisors, to conduct regular
stress tests in order to ensure their capital adequacy.
Furthermore, stress tests are conducted by central
banks for stability studies.

The course aims to impart comprehensive expert
knowledge on stress testing. It will focus on both
theory and practice, where possible.
Banking supervision
                                                                                                            Page 27

Course level I

   Banking supervision within the Basel
   framework – Course level I
Duration                                                      Content
22 – 26 January 2018 (5 days)                                 – Banking supervision in Germany
                                                              – The Single Supervisory Mechanism as a first step
Deadline for application                                        towards a banking union in Europe
8 December 2017                                               – Motivation behind Basel III, scope of application,
                                                                implementation process
Venue                                                         – Capital – quality, quantity and transparency
Frankfurt                                                     – Risk coverage – credit risk, operational risk, market
                                                                risk
Objective                                                     – Macroprudential instruments – capital conservation
Basel III is a comprehensive set of reform measures             buffer, countercyclical capital buffer, systemically
developed by the Basel Committee on Banking Super-              important banks, systemic risk buffer
vision to strengthen the regulation and supervision of        – Leverage ratio
the banking sector. In this context, the three pillars of     – Liquidity – quantitative standards, monitoring
Basel II have been considerably updated and supple-             tools, management principles
mented. Specifically, Basel III focuses on strengthening      – Pillar 2: approaches and principles (overview)
the quality and quantity of the regulatory capital            – Business model analysis
framework, introduces a global liquidity standard,            – Supplemental Pillar 2 guidance
deploys measures to reduce cyclicality, introduces a          – German implementation: ICAAP and SREP
leverage ratio and provides a basic approach to regu-         – Supervision of IT risks including cyber risks
lating systemically important banks. The Basel frame-         – Pillar 3: market discipline
work is also a major component of the regulatory
harmonisation process within the European Union               Target group
and was transposed via the Capital Requirements               This course is aimed at bank inspectors and employees
Directive IV package and implemented in 2014.                 working in the banking supervision department of
                                                              their central bank or supervisory authority. Basic
The course aims to impart comprehensive expert know-          knowledge of the new regulations under Basel II and
ledge on major issues relating to the implementation          III is essential for productive participation. Participants
of the Basel III framework in the EU and Germany. The         should also be familiar with the supervisory policies
course will focus on both theory and practice, where          and practices applied at their institution and should be
possible. A key focus of the course will be an introduc-      prepared to take an active part in discussions.
tion to major Pillar 2 issues (supervisory review process).
Banking supervision
   Page 28

Course level II

   On-site banking supervision

Duration                                                    – Introduction to on-site inspections
5 - 9 February 2018 (5 days)                                  • Inspection approach
                                                              • Types of inspections
Deadline for application                                      • Inspection planning and organisation
22 December 2017                                              • On-site inspection process
                                                              • Documentation and wrap-up
Venue                                                       – Introduction to the German qualitative regulations
Munich                                                        as laid out in the Minimum Requirements for Risk
                                                              Management
Objective                                                   – Qualitative and quantitative supervisory regulations
The course is designed to provide on-site examiners           and review thereof
from central banks and supervisory authorities with an        • General risk management requirements
understanding of how on-site inspections are carried          • Risk management and risk-taking capacity
out at the Deutsche Bundesbank. The course will focus         • Credit business and credit risk
on risk-based examination as well as on common                • Trading business and market risk
analytical and supervisory topics and techniques. In          • Liquidity risk
particular, supervisory experts from the Bundesbank           • Operational risk
will provide policy background information and share          • Information technology security, IT risk, and
hands-on experience about how Pillar 2 of Basel II is           business continuity management
implemented via on-site inspections (eg for credit,           • National experience with regard to on-site
market or liquidity risk). The course will include inter-       inspections
active sessions in which participants will be invited to
give short presentations about specific aspects of          Target group
on-site supervisory processes in their home country         This course is aimed at bank inspectors and senior em-
and share their experience.                                 ployees working in the banking supervision depart-
                                                            ment of their central bank or supervisory authority.
Content                                                     Basic knowledge of the new regulations under Basel
– The Single Supervisory Mechanism (SSM) as part of         II and III is essential for productive participation. Par-
  the European banking union, including new regu-           ticipants should be familiar with the supervisory poli-
  latory requirements such as Basel III                     cies and practices applied in their home country.
– Banking supervision in Germany                            Moreover, they are invited to take an active part in the
                                                            discussions and to make contributions with regard to
                                                            the on-site inspection processes in their jurisdictions.
Banking supervision
                                                                                                         Page 29

Course level II

   Banking supervision within the Basel
   framework – Course level II
Duration                                                    process). Unlike the level I course, the level II course
27 - 31 August 2018 (5 days)                                will look in depth at the new requirements for the
                                                            advanced approaches to covering credit and market
Deadline for application                                    risk as well as the securitisation framework.
6 July 2018
                                                            Content
Venue                                                       – Banking supervision in Germany
Frankfurt                                                   – The Single Supervisory Mechanism as a first step
                                                              towards a banking union in Europe
Objective                                                   – Motivation behind Basel III, scope of application,
Basel III is a comprehensive set of reform measures,          implementation process
developed by the Basel Committee on Banking Super-          – Capital – quality, quantity and transparency
vision, to strengthen the regulation and supervision of     – Risk coverage – credit risk, securitisation, counter-
the banking sector. In this context, the three pillars of     party credit risk, market risk, operational risk
Basel II have been considerably updated and supple-         – Macroprudential instruments – capital conservation
mented. Specifically, Basel III focuses on strengthening      buffer, countercyclical capital buffer, systemic risk
the quality and quantity of the regulatory capital            buffer
framework, introduces a global liquidity standard,          – Leverage ratio
deploys measures to reduce cyclicality, introduces a        – Liquidity – standards, monitoring tools,
leverage ratio and provides a basic approach to regu-         management principles
lating systemically important banks.                        – Pillar 2: ICAAP, SREP – business model analysis
                                                            – Corporate governance
The Basel framework is a major component of the
regulatory harmonisation process within the European        Target group
Union. It was transposed via the Capital Requirements       The level II course is aimed at experts from central
Directive IV package and implemented in 2014. This          banks and supervisory authorities involved in the im-
course aims to impart comprehensive expert know-            plementation of Basel III. A sound knowledge of the
ledge on major issues relating to the implementation        revised framework is essential for participation. Par-
of the Basel III framework in the EU and Germany.           ticipants should also be familiar with the supervision
                                                            policies and practices of their financial system and
The course will focus on both theory and practice,          should be prepared to take an active part in the dis-
where possible. A key focus of the course will be an        cussions.
introduction to major Pillar 2 issues (supervisory review
Financial
Workshop and
 monetary system

                   Photo: gettyimages/SusanneB
Financial and monetary system
                                                                                                                               Page 31

   Content

Digital financial innovations..................................................................................................................... 32
19 – 21 February 2018 (deadline for application: 29 December 2017)

Financial stability, systemic risk and macroprudential policy – Course level I............................................ 33
19 – 23 March 2018 (deadline for application: 26 January 2018)

Recovery and resolution with a focus on credit institutions..................................................................... 34
23 – 25 May 2018 (deadline for application: 30 March 2018)

Financial stability, systemic risk and macroprudential policy – Course level II........................................... 36
4 – 8 June 2018 (deadline for application: 13 April 2018)

Understanding the monetary and financial system.................................................................................. 37
23 – 27 July 2018 (deadline for application: 1 June 2018)

Developing financial markets................................................................................................................... 39
5 – 9 November 2018 (deadline for application: 14 September 2018)

Please apply online at www.bundesbank.de/courseregistration
Financial and monetary system
   Page 32

Expert panel

   Digital financial innovations

Duration                                                      the direction in which disintermediation might go. There
19 - 21 February 2018 (3 days)                                are already cases of fintechs and incumbent financial
                                                              intermediaries starting to cooperate, of fintechs being
Deadline for application                                      bought up, and of established financial intermediaries
29 December 2017                                              developing new technologies themselves. In addition,
                                                              the expert panel will also discuss digitalisation in pay-
Venue                                                         ments, ie new products, new players and new chal-
Eltville                                                      lenges.

Objective                                                     This expert panel is designed to provide central bank
Providers of technically enabled innovations such as          employees with a discussion platform to share their
crowdfunding platforms and of new digital technolo-           experience and knowledge. We therefore expect par-
gies for the financial services industry – also called fin-   ticipants to actively contribute. Participants might be
techs – have experienced significant growth in recent         requested to submit a paper or presentation.
years. Benefits of these developments might include
efficiency improvements by reducing costs and facili-         Content
tating competition, which contributes positively to           – Fields of applications of technology-enabled
consumer welfare, innovation and economic develop-              financial innovations
ment. Identifying and mitigating potential risks to finan-    – Opportunities and risks of fintech-induced
cial stability and finding the right balance with the           disintermediation
potential benefits of digital finance are key challenges,     – Digital financial innovations and related systemic
also for central banks and regulators. Therefore, this          risks
expert panel will first of all provide an overview of         – Influence of digital financial innovations on the
fields of applications, opportunities and risks of tech-        traditional banking landscape
nology-enabled financial innovations. It will be a plat-      – Impact on financial and banking regulation
form to discuss possible risks to the financial system        – Digitalisation in payments
and whether regulatory answers are necessary (and if
so, which ones). Secondly, the expert panel will also         Target group
focus on the impact on the traditional banking industry       Central bank experts in the following areas: financial
as fintechs may add further pressure to banks’ already        stability, banking regulation, payment systems.
beleaguered profitability. The expert panel will discuss
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