International Central Banking Models and Legal Framework Course

Course Overview:

The course on International Models and Legal Frameworks of Central Banking is designed to provide learners with all the knowledge regarding structures, functions, operations and legal frameworks of central banking in different countries in the world. Participants will delve into the fundamental objectives of central banks, such as the execution of state monetary policy, the assurance of the country’s financial system, and the management of foreign exchange reserves.

The course addresses various models including Dynamic Stochastic General Equilibrium (DSGE) and explores the links between central banks and legal institutions including autonomy and ownership.

This legal aspect will also help the learners to appreciate the tools and instruments available to central banks in attempt to control the financial systems of the country in relation to the law which prohibits the central bank from giving out loans to the government.

The target audience is top management, bank managers, legal consultants, and auditors who are somehow engaged in the processes of central banking and international finances.

Course Objectives:

At the end of this International Central Banking Models and Legal Framework Course, learners will be able to do:

• develop an in-depth understanding of international central banking models and legal framework
• enhance the operations of one’s organization to help build stronger sustenance for supporting global operations and transactions
• define and review the monetary policy to check if one’s organization is in adherence and is updated with industrial standards
• apply and invest in different models of operations to ensure maximum benefit in terms of economic growth
• mentor other professionals on critical aspects surrounding international central banking
• make the best use of technology and other tools to optimize operations and data recording and maintenance for faster, smarter resolution
• be aware and apply necessary laws and regulations to safeguard organizational interests
• predict and address all possible risks that could stem from international associations and operations, functioning within the legal and regulatory limits of concerned nations
• assume greater responsibilities in overseeing critical processes and operations for one’s organization to support economic growth, thus securing one’s future in terms of opportunities for career progression
• take pride in supporting one’s organization and nation in achieving economic success

Who Should Attend?

This course is ideal for:

• Top management of organizations involved in providing strategic leadership and guidance to the organization
• Bankers and other financial executives involved in key central banking processes
• Legal advisors and attorneys need to be well aware of the required legal framework related to international central banking
• Internal and external auditors are responsible for ensuring adherence to required standards and protocols
• Managers and leaders overseeing multiple central banking functions for one’s organization
• Any other professional interested to know more about international central banking models and related legal frameworks

Course Outlines:

Module 1 – Components of a Financial System

• Money
• Banking and financial institutions
• Financial instruments
• Financial markets
• Central banks

Module 2 – Pillars of Central Banking

• Price stability
• Stable banking system
• Safe and reliable payments system

Module 3 – Functions of a Central Bank

• Implementing monetary policies
• Setting the official interest rate
• Controlling money supply
• Lender of last resort
• Managing foreign exchange and gold reserves
• Regulating and supervising the banking industry

Module 4 – Principles Behind Central Bank Co-operation Activities

• Global monetary and financial stability
• Relationship building
• Openness and respect
• Efficiency
• Sustainability
• Evaluation

Module 5 – Overview of Bank for International Settlements (IBS)

• The organization of central banks
• Goals
• Role in banking supervision

Module 6 – Dynamic Stochastic General Equilibrium (DGSE) Model

• History
• Structure
• Schools
• Criticism

Module 7 – Foreign Exchange Reserve Management

• Guidelines
• Objectives
• Institutional framework
• Risk management

Module 8 – Monetary Policy Tools

• Open market operations
• Reserve requirement
• Discount rate

Module 9 – Monetary Policy Instruments

• Interest rates
• Open market operations
• Quantitative easing
• Capital requirements
• Reserve requirements
• Credit guidance and control
• Exchange requirements
• Margin requirements
• Limits on policy effects
• Forward guidance
• More radical instruments

Module 10 – Elements Determining Central Bank Autonomy

• Mandate
• Relationship to the state
• Power to make policy decisions
• The officer appointment process and term limits

Module 11 – Types of National Central Bank Legal Systems

• Civil law tradition
• Common law tradition
• Mixed tradition

Module 12 – Legal Ownership of Central Banks

• Fully owned by the state/public sector
• Half owned by the state/public sector
• The majority is owned by the public sector

Module 13 – Prohibitions of Central Bank Lending to Governments

• Blanket prohibitions
• Quantity limits
• By purpose
• By term/maturity of government activity financing

see more: Introduction to Markets, Securities and Modern Portfolio Management Course