Banking Policy Formulation and Management

9 December to 20 December

There is need to understand the bank’s policy formulation mechanism in the context of its auditing the broader monetary policy strategy, touching on the choice of the monetary policy/exchange rate regime, monetary policy objectives and instruments, operational goals, and the functioning of the monetary policy transmission mechanism.

Bank policy formulation should focus on the practicalities of implementing operational policy including its effects on the central bank’s balance sheet. Discussing auditing fiscal and monetary policy instruments, factors affecting short-term money market liquidity, forecasting liquidity, the conduct of open market operations, and the role of required reserves, standing facilities, and central bank communication.  

Target Audience: 

This course is aimed at Middle Management to Senior-level officials in central banks responsible for monetary policy analysis and policy formulation or the conduct of monetary policy operations; Bankers, Financial analysts and ministries of finance/economy with an interest in gaining a deeper understanding of monetary policy implementation.

Course Outcomes: 

Upon completing this workshop, the delegates should be able to:

  • Understand the link between bank policy, what can generate tension with central banks’ other objectives because bank reserves play other important roles in the economy
  • Understand the important to understand the tension between the daylight and overnight need for reserves and the potential problems that may arise.
  • Develop  an  understanding  of  the  demand for reserve balances will vary inversely with the market interest rate, since this rate represents the opportunity cost of holding reserves
  • Outline best practices for a financial institution’s policy audit function; Provide a framework for performance and promotion of a broad range of policy audit activities
  • Establish the basis for measuring performance in the policy audit function and indicate how the work of the policy audit function can improve the financial institution’s processes and operations