Financial Sector and Payment Systems Programmes
FSMP 01-R: Regional Course on Banking Supervision and Resolution Level I
Date: March 27 - April 7, 2023
Duration: 10 days
Venue: Lagos, Nigeria.
Bank failure could result in the loss of investments by depositors, thereby putting the much needed confidence in banks at risk. There may also be a disruption of the payment system, with spill-over effects to other banks, financial institutions and markets as well as the entire economy. Thus, there is the risk of bank failure snowballing into contagion or a run on other banks if it goes unchecked. To avoid systemic risk and ensure sound, stable and healthy banking/financial system, it is important to equip banking supervisors not only with the tools but also update their knowledge to be in line with current development/challenges in the banking/financial sector.
Given the complexities in the banking sector and the significant role it continues to play in the developmental process of our economies, it is important for bank supervisors to be continuously trained to possess the needed know-how to steady the growth of the banking system. Sound banking principles and supervisory techniques interfaced with legal framework to handle banking crisis and its resolution require continuous upscaling of knowledge of bank supervisors. Accordingly, there is an urgent need for a well guided risk management process in the banking system to ensure good corporate governance and best practices.Objective
The objective of the course is to enhance participants knowledge in banking supervision to enable them to effectively and efficiently perform their duties as bank supervisors. Specifically, the course will provide the participants with indepth knowledge of the techniques of supervision, bank licensing and preventive measures needed to avoid bank failures.Broad Themes
The following are the themes to be covered:
- • Bank licensing process
- • Bank failure: causes, prevention and resolution
- • Capital and capital verification
- • Consolidated supervision
- • Forex operations and forex examination process
- • Bank accounting
- • Financial statement analysis
- • Bank investment and liquidity management
- • On-site examination process
- • Off-site examination process
- • Fraud and forgeries
- • Corporate government principles
- • Money laundering, financial crime
- • Framework for prompt corrective action and
- • International Financial Reporting Standards (IFRS) principles.
It is expected that at the end of the course the participants would benefit in the following ways:
- • Broaden their understanding of bank supervision methodology and techniques
- • Enable them to appreciate the causes of bank failure, its prevention and resolution and
- • Enable them acquire the necessary skills to conduct on-site examination and off-site surveillance of Financial institutions
The course is targeted at junior/middle level staff of central banks, policy-making ministries, deposit money banks, audit firms and other supervisory agencies in the financial sector with basic experience in bank examination, as well as supervision of banks and non-bank financial institutions.
FSMP 02-R: Regional Course on Microprudential and Macroprudential Analysis
Date: April 24 - 28, 2023
Duration: 5 days
Venue: Abuja, Nigeria.
The recent financial crisis has underscored the necessity to move beyond a purely micro technique to financial regulation and supervision to a macro approach. Macroprudential analysis assesses the collective behaviour of financial institutions and the way in which it may pose risks to the overall system. This contrasts with microprudential analysis which looks at institutions in isolation and produces assessments at the individual firm level. There is a growing consensus among policymakers that a macroprudential approach to regulation and supervision should be adopted to enable monetary authorities have direct influence on the supply of credit. These macrprudential tools are needed because credit/asset price cycles can be key drivers of macroeconomic volatility and potential financial instability.
Macroprudential analysis underpinned by microprudential help to guide monetary policy which involves measures designed to regulate and control the volume, cost, availability of money and credit in an economy to achieve some specified macroeconomic goals. The major objective of monetary policy is to maintain relative stability in domestic prices. Since the policy interest rate is used to achieve the objective of price stability, macroprudential policy is required to achieve the additional objective of financial stability. However, effective macroprudential policy instruments are an important missing ingredient from the current policymaking toolkit.Objectives
The main objective of the course is to upgrade the knowledge and skills of participants to effectively analyze monetary and macroprudential policies for price and financial stability. Specifically, the course is aimed at enhancing participants’ competence in:
- • formulating appropriate supervisory & regulatory policies and taking timely actions to promote safe, smooth and sound operations of the financial system.
- • analyzing the different mucroprudential and macroprudential policy options that would limit the risk of contagion with the resultant possible systemic crises.
The following broad themes, among others, will be covered at the course:
- • Banking System: Banking behaviour and vulnerabilities (crises)
- • Analytical Methods: Stress testing financial systems
- • Qualitative Aspects: Incentives
- • Macroprudential indicators of the health and stability of financial systems;
- • Microprudential versus macroprudential approaches to financial regulation and supervision;
Financial soundness indicators (FSI);
Sectorial balance sheet analysis;
Observance of standards and codes;
Attendance is for senior/middle level officials in central banks, (research, monetary policy, legal, financial surveillance departments, etc) core economic and finance ministries, central statistical offices, research-oriented institutions and other public/private organizations whose staff are involved in monetary, financial and economic management
FSMP 03-R: Regional Course on Combating Money Laundering and Cyber Crimes in the Financial Services Industry
Date: May 8 - 12, 2023
Duration: 5 Days
Venue: Monrovia, Liberia.
The integrity of the banking and financial services sector depends on the perception that it functions within a framework of high legal, professional and ethical standards. Within the West African sub-region, there has been growing concern about the dangers associated with money laundering and other financial crimes to the stability, growth and integrity of the financial system. Generally, money laundering is the processing of criminal proceeds to disguise their illegal origin. It is a derivative crime from predicate offences like illicit trafficking in narcotics and human beings, corruption, kidnapping, prostitution, illegal mining and other nefarious activities as well as financial crimes such as foreign exchange malpractices, bank and tax frauds, etc. All these impact negatively on the health and stability of the financial system. Money laundering and financial crimes are global in nature and because of the interconnectedness of such crimes, national measures often achieve limited success. Thus, concerted efforts are needed through global, regional and national linkages as well as inter-agency collaboration within these various layers to combat money laundering and other financial crimes. Apart from intelligence gathering there is urgent need to strengthen and sustain capacity building of the various agencies involved in tackling this organized crime.
Cyber threats in the financial services industry can have wide-ranging consequences, not just to organizations under attack, but to the economic health of entire nations. The next evolution in cybersecurity requires cutting edge technology, vigilant people, and innovative processes, to articulate cybersecurity baselines, identify gaps, develop strategic road maps, and support program execution to promote a proactive – if not predictive posture. Financial services organizations possess a gamut of critical data and information supporting the financial health of a host of customers of various types. On a daily basis, the average financial services company handles thousands of complex and critical transactions processed through mammoth data centres and numerous third-party vendors, such as cloud, and servers. Banking institutions have also deployed payments system channels, such as ATMs, Point of Sale Terminals, internet banking, use of Credit and Debit cards etc. Thus, the financial services industry is a prime target of cyber criminals.Objectives
The course intends to develop critical skills in tracking money laundering and financial crimes perpetrated through the financial system in the sub-region.The specific objectives include the following:
- • To enable participants understand the concept and techniques of money laundering
- • To enhance the knowledge of participants in AML/CFT supervision and compliance and
- • To expose participants to current developments and trends in global initiatives to combat money laundering and other financial crimes.
- • Expose participants to the threats posed by cyber-crimes to organizations and measures to mitigate these threats; and
- • Evaluate different approaches for securing complex computer networks, and discuss the risks and threat prevention measures, in the different layers of services in the financial service industry.
The following broad themes will be covered:
- • Overview of money laundering, economic and other financial crimes (Definitions, Stages, Types, etc)
- • Effects of money laundering on the financial system
- • Enhancing the role of FIUs and other structures for effective AML/CFT Regimes
- • Procedures, monitoring tools and investigative techniques for combating money laundering
- • Combating Advance fee Fraud (aka 419): Lessons from Nigeria
- • International/Regional Initiatives: The Revised FATF Standards-Implication for robust AML/CFT Regime in West Africa
- • Financial Crimes and the production of fraudulent documents (Identity theft, Credit Cards, Visa and Passports, Counterfeit crimes, etc)
- • Risk Based Approach in Implementing AML/CFT programmes
- • New challenges in AML Supervision
- • Designing AML Compliance Systems for enforcement in Financial Institutions
- • Customer Due Diligence: The Link to Robust AML/CFT Framework.
- • Overview of cyber-security concepts and drivers in the financial services industry;
- • The role of the regulator in relation to cyber-security;
- • What constitutes compliance for firms in the industry;
- • Legal initiatives relating to cyber-security and cybercrimes;
- • Best practice cyber-security frameworks and strategies;
- • Establishing effective mechanisms for sharing intelligence for cybercrimes prevention and learning lessons on cyber incidents across the financial services industry;
- • Reliance on critical information infrastructure in the financial services industry in the event of a cyber-attack or multiple cyber-attacks; and
- • Cyber-security issues in the provision of; Electronic banking services
Mobile financial services
Cheque truncation services
Online stock trading services through the central security clearing system
Future outlook: cyber-security and the financial services industry
The course is targeted at senior/middle level officials of central banks, deposit money banks, parliaments, core economic ministries, mass media, security agencies and other institutions responsible for ensuring compliance with anti-money laundering and combating the financing of terrorism (AML/CFT).
FSMP 04-R: Regional Course on Reserves Management (Level 11)
Date: June 19 - 23, 2023
Duration: 5 days
The need for efficient management of foreign exchange and foreign reserves is imperative within the context of efforts to evolve greater prudence and efficiency in the management of public and corporate finances.
In addition to its traditional role of facilitating international trade finance and the exchange of goods and services among nations, effective and active management of reserves and foreign exchange is increasingly being used as a tool for sustainable revenue generation by central banks, commercial banks and other players in the financial system. The realization of the revenue generating potential and the consequent professionalization of the foreign exchange and reserves management functions have resulted in the development of special tools and techniques applicable to the trade. A firm grasp of these tools and techniques by foreign exchange dealers and reserve managers is essential to acquiring a competitive edge in this global environment.Objectives
The course is designed to acquaint participants with critical skills required to effectively play their roles in treasury/foreign reserves management. Specifically, the course is meant to:
- • improve understanding and enhance the skills of participants in analyzing foreign exchange market information;
- • improve their ability to develop and review portfolio management strategy;
- • sharpen their analytical skills and operating techniques in managing foreign exchange and reserves; and
- • increase their ability to make decisions on which specific instruments to use, when and how.
The following broad themes will be covered:
- • Overview of Reserves Management
- • Foreign Exchange Markets and Products
- • Reserves Pooling Mechanisms (Regional Perspective)
- • Investment Portfolio Management
- • Liquidity Analysis and Reserves Tranching
- • Technical and Fundamental Analysis in Reserves Management
- • Monitoring of Exchange Market Information and Market Movements
- • Reserves Investment Markets and Instruments (Derivatives: Swaps, Options, etc.)
- • Risk in Portfolio Management and Risk Management Framework
- • International Reserves Management Accounting
- • Approved Currencies as Stock of Reserves
- • Control of Expenditure as a Reserve Management Tool
- • Reserve Placements and Corresponding Banking Relationships
Middle/executive level officials of central banks, financial regulatory agencies, deposit money banks, core economic ministries and other financial institutions involved in treasury or reserves management functions or regulation from the constituent countries of the West African Institute for Financial and Economic Management (WAIFEM).
FSMP 05-R: Regional Course on Microfinance and Poverty Reduction
Date: July 3 - 7, 2023
Duration: 5 days
Venue: Monrovia, Liberia
Microfinance has become a poverty alleviation strategy within the dominant development paradigm. It is being promoted as a mechanism for triggering and sustaining social and economic development in support of informal sector entrepreneurial activities. Within the purview of the Sustainable Development Goals (SDGs), the microfinance approach provides an overarching framework for the diverse constituency of aid organizations and community motivated private actions for the poor to pay their way out of poverty. In other words, microfinance has emerged as a major development tool and for financial inclusion, especially in developing countries. The importance of financial inclusion derives from the promise it holds as a tool for economic development, particularly in the areas of poverty reduction, employment generation, wealth creation and improving welfare and general standard of living. Thus, there is the need to build capacity in the development, regulation and operations of micro-finance institutions for effective and efficient management of micro-finance programmes within the countries of WAIFEM member central banks.Objectives
The course aims at enabling participants to learn innovative strategies in the leadership and management of microfinance institutions; upscale their skills in microfinance programming and the role of financial inclusion in poverty reduction; develop a critical analysis of the broader issues and environment in which microfinance initiatives are based; and analyze and adapt current best practices from varied experiences to their own situations.Broad Themes
The broad themes to be covered at the course include:
- • Development and management of micro enterprises: prospects and challenges
- • An overview of financial inclusion vehicles
- • Accounting and financial analysis for MFIs
- • Governance issues (ethics, staff development, etc)
- • Product development and client analysis
- • Regulatory frameworks for microfinance operations
- • Strategic planning for MFIs
- • Improving operating efficiencies
- • Management information system for MFIs
- • Opportunities and challenges of financial inclusion
- • Issues relating to consumer protection
- • Risk management and
- • Delinquency management and interest rate setting
The course is designed for senior/middle level staff of central banks, national microfinance agencies, microfinance institutions and practitioners, rural/community banks, economic and financial policy-making ministries and NGOs involved in the supervision, management and operations of microfinance institutions.
FSMP 06-R: Regional Course on Financial Market Infrastructure and Payment Systems
Date: August 14 - 18, 2023
Duration: 5 days
Venue: Freetown, Sierra Leone
The financial system comprises financial institutions, markets and infrastructure. Financial Market Infrastructure (FMI) refers to the critically important channels for providing clearing, settlement and recording of monetary and other financial transactions. The financial infrastructure is the core component of the financial system and its effective functioning is a precondition for the system’s viability. The financial infrastructure is therefore made up of technical systems through which payments are made and transactions settled.
Payment systems are widely recognised as an important part of the financial infrastructure of the modern economy. They facilitate trade, promote the efficient functioning and integration of markets as well as support the effective implementation of monetary policy
Payment systems have undergone tremendous reforms and restructuring over the years, either in terms of the services provided or the payment infrastructure through financial innovations. The focus on payment systems is because of their wide recognition as an important segment of the financial infrastructure of modern economies. Countries have introduced mechanisms such as Real Time Gross Settlement (RTGS) system which is suited for high - volume, high - value transactions. It lowers settlement risk, besides giving an accurate picture of an institution’s account at any point in time. The RTGS system is increasingly one of the most reliable systems of settling transactions at the end of a determined period or day, also known as the Net Settlement System. In addition to the RTGS Systems, most financial institutions have also moved into the Cards Business with the aim of streamlining and enhancing the payment systems. This caters for the processing and settlement of retail transactions. However, the West African sub-region is faced with the challenges of linking up national payment platforms, both at the wholesale and retail levels. This and related payment and settlement issues will be explored during the course.
On the basis of the type of settlement adopted, payment systems can be classified into two types: Net Periodic Settlement System and Real Time Gross Settlement System (RTGS). The latter system has been acclaimed internationally as being efficient. It is necessary for WAIFEM member countries to adopt best practices particularly as the monetary integration initiative of WAMZ countries requires the harmonnisation of payments and settlement systems of member countries. Notable strides have been made by some member countries in implementing the Real Time Gross Settlement (RTGS) System. However some other member countries are at different levels in the preparatory stages to implement RTGS.Objectives
The course is designed to give participants an appreciable understanding of payments systems in general including policy and risk issues. It will also provide participants with an understanding of Real Time Gross Settlement. The course would also provide a platform for a review of developments in member countries of WAIFEM regarding the introduction of RTGS systems and to share experiences.
The specific objectives are to assist participants to:
- • improve their understanding of the payment, clearing and settlement system;
- • deepen understanding of the operational working of the RTGS system;
- • upgrade their skills in dealing with operation of accounts, maintenance of liquidity and use of collaterals on the business day of the RTGS system;
- • strengthen their analytical capacity to evaluate and manage risks inherent in the system;
- • improve skills for efficient performance of over-sight functions of the RTGS system;
- • review developments and trends in the RTGS systems and how they are being addressed by central banks and other payment systems institutions around the world; and
- improve understanding of the retail payments systems operated by businesses around the world.
The course is targeted at senior/middle level staff working in the banking services departments, payment systems oversight and finance and technology (fintech) departments of central banks, deposit money banks, and other relevant institutions with similar responsibilities. Also, staff with experience in the operations and oversight of financial market infrastructure (FMI), national switches, such as payment systems, securities settlement systems, and central securities depositories are eligible to attend the course.
FSMP 07-R: Regional Course on Banking Supervision and Resolution Level 2
Date: September 4 - 15, 2023
Duration: 10 days
Venue: Lagos, Nigeria
In the light of the recent global financial crisis, discussions have been in different fora globally about the subsisting regulatory practices and the future of financial regulation and supervision. Many have called for fundamental rethinking on macroeconomic, monetary and financial sector policies to meet the new challenges and realities. A greater chunk of these ideas entail a structural shift in the international financial architecture and a potentially enhanced degree of coordination among monetary authorities and regulators.
The banking industry within the context of the international financial system is witnessing tremendous changes which have accentuated the need to evolve legislation systems, procedures and appropriate financial health assessment mechanisms to contain the complexity of risk inherent in the system. This dynamism in the financial sector requires enhancing the executive capacity of regulators and supervisors to enable them keep abreast of current developments in the global banking industry and be able to manage the process, and also ensure a stable, effective and efficient financial system that is anchored on sound and strong regulatory structure.Objectives
The course is designed to assist participants to appreciate the need for financial stability and enhance their ability to limit the risk of systemic failure through various reform measures. In addition, the course will assist participants to understand and effectively implement the resolution process.Broad Themes
The themes to be covered include:
- • Core Principles in Banking Supervision – Self Assessment Process and Procedures: The Ghanaian Experience.
- • Risk-based Supervisory Approach: Cost; Benefits; and Implementation Challenges.
- • Basel II and Basel III: Issues and Challenges
- • Cross-border Supervision
- • Internal Controls Measures
- • Electronic Banking/IT Based Examination
- • Fundamentals of Bank Operations
- • Credit Risk and Credit Examination Procedure
- • Contingency Planning: Framework for Managing Systemic Banking Crisis
- • Safety Nets: The Case of Deposit Insurance Schemes, Asset Management Companies, etc
- • Report Writing Techniques
- • Banking Crisis and Supervisory Responses and
The course is targeted at senior/middle level staff of central banks, deposit money banks, audit firms and other supervisory agencies in the financial sector with considerable experience in examination and supervision of banks and non-bank financial institutions.
FSMP 08-R: Regional Course on International Financial Reporting Standards (IFRS)
Date: October 9 - 13, 2023
Duration: 5 Days
Venue: Accra, Ghana
As a result of globalization, there is an increasing need to have universal accounting standards applicable to all jurisdictions. Such standards will engender harmonization of accounting frameworks and practices around the World. Through this achievement, evaluation of performances, adherence to best practices, comparison amongst similar players, etc is made possible.
According to International Financial Reporting Standards, (IFRS), the aim pursued through the preparation of financial statements is to “provide information about the financial position, the performance and changes in the financial position of an entity that is useful to a wide range of users in economic decision.
Given the fact that the economies of the countries in our sub-region are linked to the rest of the World, it is imperative that global accounting standards such as the IFRS forms the basis for accounting and financial management practices in our sub-region.
A key aspect of the West African Monetary Zone (WAMZ) project is the harmonization of standards, processes and procedures of the operational modalities of the member countries to enable the smooth establishment of the second monetary zone. The adoption of the IFRS by WAMZ member countries will not only reaffirm its leadership role in the interaction process but will ensure a seamless harmonization of accounting practices among countries of the Zone. It is in view of the above that a course on International Financial Reporting Standards is proposed.
The objective of the course is to acquaint participants with the provisions of the International Financial Reporting Standards. The course will equip the participants with the necessary information and skills to advise and guide the process of migrating to IFRS.
The specific objectives of the course are to provide participants with:
- • an appreciation of the need for global standards in the reporting of financial positions and performances;
- • an appreciation of IFRS – its merits and advantages over the current reporting system;
- • an idea of the method of interpretation of financial statements prepared under IFRS system;
- • an understanding of the use of IFRS for policy making and key management decision;
- • an appreciation of implications for migration to IFRS – the required work plan, the training needs and cost implication; and
- • an understanding of the WAMZ programme and the adoption of IFRS by member states.
- • The Need for International /Uniform Reporting;
- • Overview of Current Accounting Standards- Applications , Strengths and Weaknesses;
- • Introduction of IFRS, Concepts, Roadmaps & Challenges;
- • The Merit of IFRS over Current Accounting Standard;
- • Framework for the Preparation and Presentation of Financial Statements (IASB Framework);
- • Presentation of Financial Statement (IAS 1);
- • Disclosure Requirements under IFRS;
- • Accounting for Financial Instruments (An Introduction);
- • Accounting for Non-Financial Assets;
- • Accounting for Non-Financial Liabilities; and
- • Application of IFRS.
Who May Attend
The course is targeted at Financial executives, Accountants, Auditors, Financial analysts in central banks, core economic and finance ministries, other related ministries and parastatals, and private sector.
FSMP 09- R: Regional Course on FinTech, Artificial Intelligence (AI), Disruptive Technologies
Date: November 6 - 10, 2023
Duration: 5 Days
The financial industry has embarked on harnessing technology to its advantage, through the adoption of sophisticated financial innovations that enable the execution of transactions without human intervention. Some of the innovations are characterized by the melding of financial products and services (finance) and technology, to become what is known as FinTech solutions. This resulted in technology that facilitates the generation and distribution of products and services in a manner that gradually alters the way consumers interact with financial institutions. For instance, banking in some cases requires no physical presence of the customer, but rather executed through online access or through virtual banking. In effect, FinTech products and services offer increasingly innovative solutions to the altered consumer habits. Consequently, some conventional banks have established cooperation with FinTech partners in the interest of gaining the ability to meet the expectations of a growing number of existing and potential users, in keeping with the appropriate quality standards.
Financial technology (FinTech) is complemented by artificial intelligence (AI), and most importantly, machine learning (ML), which provides a platform for analysis of complicated data and use of algorithms in executing complex financial transactions. Machine Learning is the branch of artificial intelligence (AI) that systematically applies algorithms to synthesize the underlying relationships among data and information. For example, ML systems can be configured for automatic speech recognition systems, (such as iPhone’s Siri), or algorithms in stock exchanges. It has already received widespread application in web search, high frequency trading in stock market operations, weather forecasting, big data analytics etc.
The above innovations are generally considered disruptive technologies, due to their ability to alter the way consumers, industries, and businesses operate, by replacing human intervention with automated and more efficient procedures.Objective
The overall aim of this course is to introduce participants to the concepts of AI and FinTech and their application in the financial industry. Specific objectives are as follows:
- • Understanding the concepts of FinTech, AI
- • Determine the current application of technology in our financial systems
- • Explore the various methods of adoption of FinTech and AI, as well as cost implications
- • Equip participants with knowledge of the key concepts and procedures required for melding technology and finance for the benefit of consumers.
- • Sensitize participants on the need to share the knowledge gained with key personnel of their institutions, with a view to encouraging the harnessing of technology in the financial industry as appropriate.
The broad themes to be covered at the course include: • Overview of FinTech and its applications; • Introduction to AI and ML; • Types of products and services delivered through FinTech, including: o Crypto currency; o Block chain technology; o Electronic payment services; o Mobile financial services; o Cheque processing services; • Types of products and services delivered through AI and ML, including: o Big data analytics; o High frequency stock trading services; o algorithms in executing complex financial transactions; • Technological challenges in Africa inhibiting adoption of disruptive technologies; • Licensing challenges in FinTech and AI oriented products and services; • The issue of big data and advanced analytics through AI and ML; • The role of the regulator in relation to FinTech, AI and ML; • FinTech and AI in relation to the future of the financial industry; • Inter-operability of modern payment systems infrastructure, challenges and the way forward; • Legal initiatives relating to FinTech, AI and ML; and • Challenges of supervision of disruptive technologies (FinTech, AI) in the financial industry.Who May Attend
The course is targeted at senior/middle level officials of central banks, financial regulatory/supervisory staff and agencies, deposit money banks, core economic and finance ministries and other financial institutions.