Around 40 people from nine different countries gathered in Morocco’s capital of Rabat at the end of September to attend a seminar on financial stability. At the “Al-Irfane Training Center – Rabat” of the Central Bank of Morocco (Bank Al-Maghrib), central bank staff from Africa (Ethiopia, Botswana, Ghana, Zambia and Guinea), the Arab region (Oman and Iraq) and the host country of Morocco delved into current issues in macroprudential analysis and policy.

Three-day focus on financial stability in Rabat

The agenda was created by two Bundesbank staff members who had prepared specialist lectures, group work and case studies for the three-day seminar. Manuel Buchholz from the Directorate General Financial Stability gave a talk on the current risk situation in Germany, the framework for macroprudential analysis and the Bundesbank’s policy approach. Particular attention was paid to the countercyclical capital buffer (CCyB) as an important macroprudential instrument. Participants were asked to actively help determine the CCyB rate as part of a case study. In this exercise, working groups had to put themselves in the position of the various institutions involved and, based on a fictitious macroeconomic scenario, decide what buffer level would be appropriate in their view. “Participants discussed the decision on the CCyB in great depth, directly applying the concepts and approaches we had set out beforehand – the feedback on the case study was very positive,” said Manuel Buchholz. Alexander Schwarz, senior advisor for financial stability at the CIC, outlined the institutional framework in Germany and Europe as well as the Bundesbank's tasks and objectives. He also provided an overview of how macroprudential measures are designed and how the topic of financial stability is communicated externally. The agenda was rounded off by presentations from Bank Al-Maghrib staff and other seminar participants.

Further seminars to be held in Morocco

The format can best be described as a regional seminar: Morocco and the Bank Al-Maghrib act as a hub for participants from (North) Africa and Arab countries, facilitating multilateral dialogue with minimal need for travel. The financial stability seminar represented the first in a series of joint activities between the CIC and the Bank Al-Maghrib. For example, an event on banking supervision and the implementation of Basel III was held in November, and a course on cash is planned for the beginning of 2024.

The Bank Al-Maghrib’s Al-Irfane Training Center in Rabat represents the ideal setting for events of this kind. Special praise is therefore due to the Moroccan organisers who ensured that everything ran smoothly on these modern premises. The participants and speakers were particularly impressed by the three simultaneous interpreters who were there for the entire course and translated the presentations given in English into French and French contributions to the discussion into English. The interpreters did a great job of ensuring that we were able to discuss and exchange ideas without any noticeable language barriers, concluded Alexander Schwarz.

Text: Alexander Schwarz