Upon completion of this program, participants will be able to:

• Analyze the core components and their respective mandates within the comprehensive **Financial Safety Net**.
• Explain the critical interaction and decision-making flow between the LOLR, Deposit Insurer, and Resolution Authority.
• Evaluate the legal authority and operational constraints for each safety net component during a crisis.
• Understand the policy framework for **Early Intervention** and its legal triggers.
• Describe the procedures and governance for information sharing and crisis communication among safety net partners.
• Assess the moral hazard and political economy challenges inherent in safety net design.
• Examine the role of macroprudential policy in preventing the need for safety net activation.
• Formulate an integrated, policy-consistent framework for national and cross-border crisis management.

• Central Bank Financial Stability and Crisis Management Staff
• Deposit Insurance Agency and Resolution Authority Personnel
• Government Policy Makers on Financial Stability
• Senior Management of Financial Institutions
• Legal Counsel and Compliance Officers for Financial Regulation
• Internal Audit specializing in Crisis Preparedness

Crisis management simulation (inter-agency role-playing), Group project on designing an integrated crisis communication plan, Case studies on safety net failures (e.g., 2008 crisis), Policy debates on optimal funding structure, Workshops on early intervention triggers, Structured discussions on legal mandates and overlap.

Unit 1: Safety Net Components and Mandates

• **Pillar 1: Central Bank (LOLR):** Mandate, tools (ELA), and risk management.
• **Pillar 2: Deposit Insurer (DIS):** Mandate, funding models, and rapid payout procedures.
• **Pillar 3: Resolution Authority (RA):** Mandate, resolution tools (bail-in, bridge bank), and planning.
• The concept of the **Crisis Management Group (CMG)** for cross-agency coordination.

• Analysis of the legal separation of powers and responsibilities among the three pillars.
• Designing a formal governance structure for crisis-time decision-making and escalation.
• The legal authority for **Early Intervention** and its sequencing with resolution.
• Establishing a clear legislative mandate for financial stability.

Unit 2: Crisis Interaction and Coordination

• The process of determining a bank is "Failing or Likely to Fail" (FOLTF).
• The interface between central bank liquidity provision (ELA) and the resolution trigger.
• Coordination protocols for activating deposit insurance and the resolution authority.
• Managing the transition from ELA to resolution funding.

• Developing legal agreements and technical platforms for secure, rapid information sharing among partners.
• The need for consistent and coordinated public communication during a bank crisis.
• Managing the balance between public transparency and market sensitivity.
• Post-crisis review and analysis of the safety net's effectiveness.

Unit 3: Risk Management and Policy Challenges

• Analyzing the inherent moral hazard risk across all three safety net components.
• Mitigation through policy design (e.g., risk-based DIS premiums, ELA penalty rates).
• The role of macroprudential policy as a first line of defense to prevent safety net activation.
• The challenge of political interference and maintaining operational independence.

• Analysis of the funding mechanisms for resolution (e.g., industry levies, MREL/TLAC debt).
• The principle of **burden sharing** and the priority of claims in resolution.
• The interaction between the Deposit Insurance Fund and the Resolution Fund.
• Managing the sovereign fiscal backstop and its implications.

Unit 4: Cross-Border and Systemic Issues

• Challenges in resolving a SIFI with complex cross-border operations.
• The role of international agreements and Memoranda of Understanding (MoUs) among resolution authorities.
• Coordination of cross-border ELA and currency provision.
• The need for legal recognition of foreign resolution actions.