Validating Bank Holding Companies’ Value-at-Risk Models for Market Risk
After completing this reading, you should be able to: Describe some important considerations for a bank in assessing the conceptual soundness of a VaR model during the validation process. Explain how to conduct sensitivity analysis for a VaR model, and…
Regulating the Crypto Ecosystem: The Case of Unbacked Crypto Assets
After completing this reading, you should be able to: Define and describe crypto assets, including the categories broadly used by global financial regulators to classify them. Evaluate the key components within the crypto ecosystem, the potential risks generated by these…
Monetary and Fiscal Policy: Safeguarding Stability and Trust
After completing this reading, you should be able to: Compare and contrast the channels through which fiscal policy and monetary policy influence a country’s economic activity and financial markets, and define the “region of stability” in terms of their joint…
The Rise and Risks of Private Credit
After completing this reading, you should be able to: Describe characteristics of private credit, including its typical investors and borrowers, and compare private credit to other types of loans and fixed-income instruments. Explain the return profile and growth profile of…
Laying a robust macro-financial foundation for the future
After completing this reading, you should be able to: Explain why the sudden increase in inflation that reached a peak in 2022 following the Covid-19 pandemic did not result in a full-scale global recession. Identify and describe key factors that…
Interest Rate Risk Management by EME Banks
After completing this reading, you should be able to: Describe the mechanisms through which changes in market interest rates affect a bank’s economic value and the key methods banks use to manage interest rate risk. Compare the methods banks in…
Artificial Intelligence and the Economy: Implications for Central Banks
After completing this reading, you should be able to: Identify and describe the risks arising from the widespread use of AI applications in the financial sector. Describe how central banks can harness AI to fulfill their policy objectives. Explain the…
Generative Artificial Intelligence in Finance: Risk Considerations
After completing this reading, you should be able to: Compare generative AI and traditional AI/ML algorithms. Explain the challenges generative AI systems pose for the financial sector, including those related to data privacy, embedded bias, model robustness, and explainability. Examine…
2023 Bank Failures, Preliminary lessons learnt for resolution
After completing this reading, you should be able to: Evaluate the Credit Suisse case and its implications for the international resolution framework. Evaluate the US bank failures of 2023 and their implications for the international resolution framework. Identify and describe…
Central Clearing 2
After completing this reading, you should be able to: Define a central counterparty (CCP) and describe the mechanics of central clearing. Explain the concept of novation under central clearing. Define netting, multilateral offset, and compression and provide examples of each….
