Public Sector Deposit Insurance and Bank Resolution Training Course

Course overview

Public authorities responsible for financial stability must be able to act quickly when a bank shows signs of failure, while maintaining public confidence, protecting insured depositors and limiting taxpayer exposure. Deposit insurance agencies, central banks, finance ministries and supervisory bodies need staff who can distinguish between liquidity stress and non-viability, calculate covered deposits, support a credible payout, and coordinate resolution decisions under pressure. Weak preparation can delay depositor access, increase contagion and create avoidable legal, operational and reputational risk.

This course examines the public-sector architecture of deposit insurance and bank resolution from foundation to intermediate level. Participants learn how deposit insurance schemes are funded and governed; how coverage rules, exclusions and depositor data affect payout readiness; and how the International Association of Deposit Insurers (IADI) Core Principles inform system design. They apply the Financial Stability Board (FSB) Key Attributes to resolution planning, compare purchase-and-assumption, bridge bank, bail-in and liquidation options, and assess least-cost, financial-stability and public-interest considerations. Practical work covers depositor reimbursement calculations, resolution option analysis, inter-agency coordination and communications planning.

Delivery combines instructor-led technical sessions with public-sector case studies, spreadsheet-based analysis and structured resolution simulations. Participants work in teams to review a distressed bank scenario, validate depositor data, estimate a payout requirement, recommend a resolution strategy and prepare decision material for a resolution authority or financial-stability committee. Each participant leaves with a completed Bank Failure Response Pack: a payout-readiness checklist, resolution-options assessment, stakeholder coordination map and 90-day implementation plan that can be adapted to their institution.

The course is designed for staff working in deposit insurance, bank supervision, central banking, treasury, finance ministries and public financial-stability functions. It is equally relevant to professionals newly assigned to bank resolution responsibilities and experienced policy or operations staff seeking a structured, internationally benchmarked approach.

Course objectives

By the end of this course, participants will be able to:

• Apply the IADI Core Principles to assess the mandate, governance and operational readiness of a deposit insurance system
• Calculate insured depositor reimbursements using coverage limits, exclusions, aggregation rules and depositor-level data
• Evaluate deposit insurance funding adequacy using target fund ratios, risk-based premiums and back-up funding options
• Distinguish liquidity stress, recovery-stage deterioration and non-viability indicators in a troubled-bank assessment
• Compare liquidation, purchase-and-assumption, bridge bank and bail-in tools using a structured resolution-options matrix
• Prepare a least-cost and public-interest assessment that documents the rationale for a proposed resolution action
• Design an inter-agency crisis coordination protocol covering supervisory, resolution, central bank and ministry roles
• Produce a Bank Failure Response Pack containing payout, resolution, communications and implementation actions

Benefits of attending

Target competencies

Who should attend

• Deposit Insurance Agency Officers — who design coverage, funding, payout or public-awareness arrangements
• Bank Resolution Authority Staff — who assess failing banks and recommend resolution strategies
• Central Bank Supervisors — who identify bank deterioration and must escalate concerns to resolution partners
• Ministry of Finance and Treasury Officials — who assess fiscal exposure, contingent liabilities and public-interest decisions
• Financial Stability Unit Analysts — who monitor contagion risks and coordinate crisis-management responses
• Public-Sector Legal and Policy Advisers — who translate resolution powers and depositor-protection rules into workable procedures

Requirements and prerequisites

This is a foundation-to-intermediate course and does not require prior experience in a deposit insurance agency or bank resolution authority. Participants should be comfortable reading basic bank balance sheets, including deposits, loans, capital and liquidity, and should understand the public roles of a central bank, bank supervisor and finance ministry. Familiarity with spreadsheets is useful because exercises use Microsoft Excel for payout and funding calculations. No programming, econometric modelling, legal qualification or prior knowledge of IADI or FSB standards is required. Complete beginners should expect an intensive introduction to banking-failure terminology before moving into applied cases.

Training methodology

The programme uses short instructor-led modules to establish the policy and legal concepts, followed by applied work on a common failing-bank scenario. Participants calculate covered deposits in Microsoft Excel, test data against payout requirements, compare resolution tools through a decision matrix and rehearse an inter-agency crisis meeting. Case discussions draw on international deposit insurance and bank resolution practice rather than abstract banking theory. Daily outputs are consolidated on Day 5 into an individual Bank Failure Response Pack and a prioritised 90-day application plan for the participant's own institution.

Course outline

Day 1: Deposit insurance mandates and system design

• Public-policy objectives of depositor protection and financial stability
• Deposit insurance mandates: paybox, paybox-plus, loss minimiser and risk minimiser
• IADI Core Principles for effective deposit insurance systems
• Coverage limits, eligible depositors and excluded deposit products
• Legal authority, institutional independence and accountability arrangements
• Deposit insurance governance, board oversight and decision rights
• Public awareness obligations and depositor confidence communications

Workshop: Participants map their jurisdiction's deposit insurance architecture against selected IADI Core Principles and produce a gap register.

Day 2: Funding, data and payout readiness

• Ex-ante, ex-post and hybrid deposit insurance funding models
• Target fund ratios and risk-based premium assessment methods
• Back-up funding, government guarantees and liquidity arrangements
• Single customer view data requirements and depositor record quality
• Coverage calculation rules for aggregation, ownership and joint accounts
• Payout process design, agent-bank selection and payment-channel controls
• Reconciliation, fraud prevention and post-payout claims management

Workshop: Using a Microsoft Excel depositor file, participants calculate insured balances, identify data defects and prepare a payout-readiness dashboard.

Day 3: Early intervention and bank failure assessment

• Distinguishing liquidity stress, solvency weakness and non-viability
• CAMELS-style supervisory indicators and bank deterioration triggers
• Recovery planning, early intervention and escalation thresholds
• Information-sharing protocols between supervisors, insurers and resolution authorities
• Valuation purposes: asset quality, provisional valuation and loss estimation
• FSB Key Attributes for effective resolution regimes
• Systemic impact analysis and contagion transmission channels

Workshop: Teams review a deteriorating bank case, identify escalation triggers and produce a confidential failure-assessment briefing.

Day 4: Resolution tools and decision-making

• Resolution objectives and the hierarchy of creditor claims
• Liquidation and insured-depositor payout as a baseline option
• Purchase-and-assumption transactions and transfer-perimeter design
• Bridge bank structures, governance and exit planning
• Bail-in mechanics, creditor treatment and operational constraints
• Least-cost testing, public-interest assessment and no-creditor-worse-off safeguards
• Resolution funding, loss allocation and fiscal-risk controls

Workshop: Participants use a resolution-options matrix to recommend a strategy for the case bank and defend it before a mock resolution committee.

Day 5: Crisis execution, communications and implementation

• Crisis-management group roles and inter-agency decision protocols
• Resolution weekend sequencing and critical-path planning
• Depositor, employee, market and media communication plans
• Confidentiality controls, legal privilege and information-release decisions
• Operational continuity for payment systems and critical banking services
• Post-resolution monitoring, asset recovery and lessons-learned reviews
• Building a 90-day deposit insurance and resolution readiness plan

Workshop: Participants assemble and present their Bank Failure Response Pack, including a coordination map, communications actions and 90-day improvement plan.

Tools & standards covered

Microsoft Excel, IADI Core Principles for Effective Deposit Insurance Systems, FSB Key Attributes of Effective Resolution Regimes, Basel Core Principles for Effective Banking Supervision

A typical training day

Live online deliveries follow the same structure in the East Africa Time zone, with shorter screen blocks and longer breaks.

What the fee includes

How you can take this course

Certification

Participants who complete the full five days receive the Skillset Development Certificate of Completion, stating the course title, course code, dates and delivery format — suitable for professional-development records and employer reimbursement.

Frequently asked questions