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BIS-IMF Bank Resolution Online Course (BROC)

Financial Sector Policies

The structured online course is jointly organized by the Monetary and Capital Markets Department of the International Monetary Fund (IMF) and the Financial Stability Institute (FSI) of the Bank for International Settlement, in collaboration with the International Association of Deposit Insurers. This course consists of live webinars as well as self-study, web-based materials from FSI Connect and the IMF. The online training will:

  • explore the common drivers for bank failures and introduce participants to the international standards on bank resolution regimes, including how these can be proportionally implemented;
  • enhance understanding of the main resolution tools and develop skills on how these can be applied in the case of bank failures;
  • introduce participants to the most important elements of resolution planning, resolution strategies and resolvability of banks, contingency planning, enhance awareness about the roles of both home and host authorities in this process and introduce modalities for their international cooperation;
  • familiarize participants with international standards on Deposit Insurance Schemes (DIS), the most important modalities of DIS (including types of DIS and depositor preference), the way DIS can be combined with resolution tools, and the proportional implementation of DIS; and
  • enhance understanding about the relevant processes that need to be in place to make bank resolution operational, introducing vital topics such as funding in resolution, loss absorbing capacity and operational preparedness for resolution actions. 
     
Read More Topic : Financial Sector Policies

    Target Audience

    Country officials that have limited familiarity with bank resolution proceedings and the operation of financial safety nets in central banks, regulatory agencies, supervisory authorities, ministries of finance, deposit insurance agencies, and other agencies with responsibility for bank resolution. 

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    Qualifications

    Participants are expected to have experience with supervising and/or addressing weak banks, and/or depositor protection. Internet access, specifically through the Google Chrome web browser, is essential in order to complete the online tutorials and join the webinars.

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    Course Objectives

    Upon completion of this course, participants should be able to:

    • Identify the causes of bank failure, explain the resulting origins of bank resolution regimes, and recognize the FSB Key Attributes for effective resolution regimes and associated guidance and how these can be proportionally implemented. 
    • Explain the main tools for effecting orderly resolution, and, more specifically, practice with the utilization of, and preconditions for, the application of transfer powers (i.e., purchase and assumption agreements).
    • Explain the main elements of resolution planning, while recognizing the home and host perspective. 
    • Identify key components of operational readiness for authorities dealing with bank failures. 
    • Recognize the IADI Core Principles for effective Deposit Insurance Schemes and identify the most important modalities of a DIS (including mandates, reimbursement mechanics, single customer view); explain how DIS can interact with resolution tools and identify the benefits of depositor preference. 
    • Recall and practice the main elements related to funding in resolution and the role of loss absorbing capacity in resolution. 
       
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