Risk-Based Banking Supervision

This course, presented by the IMF's Monetary and Capital Markets Department, focuses on the fundamentals and goals of Risk-Based Supervision (RBS) while discussing its challenges and key success factors. The course covers the main RBS components and steps for its implementation through a mix of both lectures and practical applications. It seeks to balance the discussion of technical, financial modeling techniques with that of less analytical bank supervision techniques. On the first day, the course covers the different concepts and tools of RBS. During the following three days, the focus is mainly on credit, liquidity, market, and operational risk assessment and stress testing techniques, respectively. On the final day, as well as during some short sessions presented during the previous days, the course discusses combining information for constructing supervisory scores, developing supervisory plans, and allocating supervisory resources and activities. 

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

• Describe the main components of RBS and their importance for effective supervision. 

• Identify various banking risks and evaluate their impact on the bank’s risk profile. 

• Apply RBS tools and concepts to develop supervisory plans and perform supervisory activities.