Training Comprehensive Financial Management for Central Banks

Training Comprehensive Financial Management for Central Banks

INTRODUCTION

Central banks are not commercial banks. They do not seek profits. Nor do they face the same financial constraints as private institutions. In practical terms, this means that most central banks could lose enough money to drive their equity negative, and still continue to function completely successfully. For most central banks, one would have to go far to construct a scenario under which they might have to compromise their policy objectives in order to keep paying their bills. This course aims at presenting the accounting principles and mechanisms and their implementation at Central Banks.

PROGRAMME OBJECTIVES

• Understanding the budgetary planning process
• Discussing financial balance and financial risk management in a central bank
• Covering Accounting organization and control environment
• Explaining main accounting reports: balance sheet and income statement analysis,
• Understanding accounting principles and techniques applicable to central bank activities, and their implementation

WHO SHOULD ATTEND?

• Central Banks Staff 
• Risk Managers
• Financial Regulators and Supervisors
• Legal Counselors
• Policy Makers

PROGRAM OUTLINE

• • Components of central bank finances
  • Central banks financial resources 
  • Central Bank Balance Sheet
  • Central Bank Balance Sheets in Theory and Practice
  • Income statement analysis
  • Data and Stylized Facts
  • The Interaction between Inflation-Output

• • Budgetary planning process of central banks
  • Good Practice Accounting and Reporting
  • The Reporting Requirement
  • Commercial Accountability
  • Public Sector Accountability
  • Management reporting
  • Achieving Good Practice

• • Financial performance assessment 
  • Accounting organization
  • Control environment
  • Foreign reserves management governance 
  • Investment results

• • Risk management 
  • Financial market activities
  • Market risk
  • Market VaR
  • Credit risk
  • Credit VaR
  • Collateral and risk management tools
  • Institutional coverage of financial risks and accounting mechanisms

• Capital adequacy
• Central Bank and Financial Stability
• Financial independence of central banks 
• Legal independence
• Goal independence
• Operational independence
• Financial independence