Training Course on Crisis Management, Lender of Last Resort and Financial System Resilience

Financial crises — whether triggered by banking failures, market shocks, pandemics, or geopolitical tensions — test the credibility and resilience of central banks more than any other institutions. The ability of a central bank to anticipate, manage, and resolve crises while maintaining public confidence and systemic stability is vital to a nation’s economic security.

The course “Crisis Management, Lender of Last Resort & Financial System Resilience” by Kincaid Development Center provides an in-depth exploration of the strategic, operational, and policy mechanisms that enable central banks to respond effectively to financial distress. Participants will examine how central banks act as the lender of last resort (LOLR), design crisis management frameworks, coordinate with fiscal and supervisory authorities, and implement financial stability tools to safeguard monetary and economic stability.

In today’s interconnected digital financial environment, the nature of crises has evolved. Cyber threats, liquidity shocks in real-time payment systems, fintech disruptions, and climate-related risks all pose new challenges to financial stability. Central banks must adopt data-driven early warning systems, macroprudential stress testing, and crisis simulation exercises to enhance their preparedness.

This course brings together leading global practices and emerging market perspectives — particularly from African central banks — highlighting how institutions can strengthen institutional resilience, improve communication during crises, and design effective recovery and resolution regimes. Participants will leave with the tools, frameworks, and confidence to protect the financial system during periods of uncertainty and systemic risk.

Participants who successfully complete the course will receive Certificate of Participation.

Course Objectives

By the end of the training, participants will be able to:

1. Understand the theoretical foundations and evolution of crisis management in central banking.
2. Define the central bank’s role as the lender of last resort (LOLR) and its policy implications.
3. Develop and implement crisis management frameworks and contingency plans.
4. Identify early warning indicators for systemic risk and financial distress.
5. Conduct macroprudential surveillance and stress testing to assess systemic vulnerabilities.
6. Design effective emergency liquidity assistance (ELA) mechanisms.
7. Coordinate policy responses with fiscal, supervisory, and international institutions.
8. Manage communications and maintain market confidence during crises.
9. Apply crisis simulation and scenario planning for preparedness.
10. Understand cross-border crisis management and resolution frameworks.
11. Assess the impact of digitalization, fintech, and cybersecurity on systemic resilience.
12. Integrate climate and geopolitical risks into financial stability analysis.
13. Evaluate the legal, governance, and accountability dimensions of crisis intervention.
14. Strengthen institutional capacity for resilience, transparency, and rapid response.
15. Learn from historical crises — including the Global Financial Crisis, COVID-19 shocks, and African banking disruptions.

Duration

5 Days (Delivered onsite or online through Kincaid’s Virtual Learning Platform)

Target Audience

• Central bank governors, deputy governors, and senior executives
• Financial stability, supervision, and policy directors
• Treasury and liquidity management officials
• Banking regulators and macroprudential policy experts
• Risk management and financial markets specialists
• Economists and financial analysts
• Legal and compliance officers involved in crisis resolution
• Officials from ministries of finance, deposit insurance, and financial safety net institutions

Course Modules

Module 1: Foundations of Financial Crisis Management

• Evolution and types of financial crises: banking, currency, liquidity, and systemic shocks
• Central bank mandates in financial stability and crisis resolution
• The role of trust, communication, and coordination in managing crises
• Lessons from historical crises (Great Depression, GFC, COVID-19, and African cases)

Module 2: Central Banks as Lenders of Last Resort (LOLR)

• LOLR theory and practical implementation
• Design of emergency liquidity assistance (ELA) frameworks
• Collateral management and pricing during crises
• Balancing moral hazard and financial stability
• Cross-border liquidity provision and coordination with international institutions

Module 3: Early Warning Systems and Systemic Risk Surveillance

• Financial stability indicators and macroprudential data analytics
• Identifying emerging risks: credit booms, leverage, and asset bubbles
• Data-driven surveillance systems and financial stability dashboards
• Role of AI, big data, and SupTech in risk detection
• Integrating climate and geopolitical risks into systemic assessments

Module 4: Macroprudential Policy and Financial Stability Tools

• Macroprudential frameworks and their interaction with monetary policy
• Countercyclical capital buffers and systemic risk mitigation
• Stress testing methodologies and applications
• Liquidity coverage ratios, capital adequacy, and leverage limits
• Integrating micro and macro supervision for holistic risk management

Module 5: Crisis Management Frameworks and Governance

• Institutional coordination in crisis response
• Legal and regulatory foundations of crisis management
• National crisis committees and inter-agency collaboration
• Role of fiscal policy and deposit insurance in crisis containment
• Governance and accountability in emergency interventions

Module 6: Resolution Planning and Recovery Frameworks

• Resolution regimes for systemic financial institutions
• Recovery and resolution planning (RRPs) for banks and FMIs
• Bridge banks, bail-ins, and liquidation mechanisms
• International best practices (FSB Key Attributes, IMF guidance)
• Cross-border resolution coordination and regional case studies

Module 7: Managing Liquidity Shocks and Market Confidence

• Liquidity management during financial distress
• Open market operations in crisis conditions
• FX interventions and stabilization policies
• Market communication and maintaining public confidence
• Media relations and transparency during crises

Module 8: Digital Era Risks: Cybersecurity and FinTech Disruptions

• Cyber risk as a financial stability threat
• Building cyber resilience in central banking operations
• FinTech, crypto assets, and systemic interconnections
• Supervisory technologies (SupTech) for digital risk monitoring
• Case studies: cyber crisis simulations and digital incident response

Module 9: Crisis Simulation and Scenario Planning

• Designing and executing financial crisis simulations
• Stress scenario construction and testing central bank responses
• Role-playing exercises for rapid decision-making
• Evaluating institutional readiness and policy agility
• Integrating lessons from simulation outcomes into policy reform

Module 10: Communication, Transparency & Stakeholder Management

• Communication strategies during financial distress
• Managing expectations and maintaining credibility
• Stakeholder mapping and information dissemination
• Crisis communication in digital and media-driven environments
• Building institutional reputation and trust recovery mechanisms

Module 11: International and Regional Crisis Coordination

• Coordination with IMF, World Bank, and regional financial safety nets
• Cross-border liquidity support mechanisms
• Regional monetary unions and cooperative crisis responses
• Lessons from African experiences in regional financial stability
• Harmonizing policy tools for cross-border risk management

Module 12: Strengthening Institutional Resilience

• Embedding resilience into central bank strategy and governance
• Building internal crisis management units and rapid response teams
• Integrating ESG and climate risk into financial stability assessments
• Post-crisis reforms and institutional learning frameworks
• Future-proofing central banks for systemic resilience

General Notes

• The instructor led trainings are delivered using a blended learning approach and comprises of presentations, guided sessions of practical exercise, web-based tutorials and group work. Our facilitators are seasoned industry experts with years of experience, working as professional and trainers in these fields.
• The participants should be reasonably proficient in English as all facilitation and course materials will be offered in English.
• Upon successful completion of this training, participants will be issued with a certificate.
• The training will be held at Kincaid Training Centre. The course fee covers the course tuition, training materials, two break refreshments and lunch.
• All participants will additionally cater for their, travel expenses, visa application, insurance, and other personal expenses.
• Accommodation and airport pickup are arranged upon request. For reservations contact the Training coordinator at Email: training@kincaiddevelopmentcenter.org or Tel: +254 724592901
• This training can also be customized to suit the needs of your institution upon request. You can have it delivered in our Kincaid Training Centre or at a convenient location.

For further inquiries, please contact us on Tel: +254 724592901 or send mail to training@kincaiddevelopmentcenter.org

Payments are due upon registration. Payment should be sent to our Bank account before commencement of training and proof of payment sent to training@kincaiddevelopmentcenter.org.