Financial Management for Managers in Central Banks

Course Description

Financial management is one of the most important aspects in any organisation. Financial management includes the strategic planning, organising, directing, and controlling of financial undertakings in an organisation. It also includes applying management principles to the financial assets of an organisation, while also playing an important part in fiscal management. Central Banks are not commercial banks as they do not seek profits or face the same financial constraints as private institutions. This course aims to equip Central Banks professionals with the requisite accounting principles and financial management mechanisms to achieve the Banks’ policy objectives.

  • Central Banks Managers and Staff
  • Risk Managers
  • Financial Regulators and Supervisors
  • Legal Counsellors
  • Policy Makers

The course helps participants:

  • Understand the budgetary planning process
  • Strengthen knowledge on financial balance and financial risk management in Central Banks
  • Explain main accounting reports: balance sheet and income statement analysis
  • Understand accounting principles and techniques applicable to Central Bank activities, and their implementation
  • Financial management: meaning & definitions
  • Why finance?

o  The goal of financial management

  • Who is the manager?

o Duties, responsibilities, goals

o The activities of the manager

  • What is the importance of financial management?
  • Components of Central Bank finances
  • Central Banks financial resources
  • Central Bank Balance Sheet
  • Central Bank Balance Sheets in theory and practice
  • Income statement analysis
  • Data and stylized facts
  • The interaction between inflation-output
  • Budgetary planning process of Central Banks
  • Good practice accounting and reporting
  • The reporting requirement
  • Commercial accountability
  • Public sector accountability
  • Management reporting
  • Achieving best practice
  • Financial performance assessment
  • Accounting organization
  • Control environment
  • Foreign reserves management governance
  • Investment results
  • Risk management
  • Financial market activities
  • Market risk o Market VaR
  • Credit risk o Credit VaR
  • Collateral and risk management tools
  • Institutional coverage of financial risks and accounting mechanisms
  • Capital adequacy
  • Central Bank and financial stability
  • Financial independence of Central Banks

o Legal independence

o Goal independence

o Operational independence

o Financial independence

The training approach is highly interactive. It uses a mixture of presentations by the facilitator and by participant(s), group or individual exercises, use of case studies and role plays. These proven learning techniques enhance understanding and retention of covered issues