Introduction to Module 4

Introduction to Module 4

Number of replies: 11

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Welcome to Module 4: Prudential Supervision

Note* This is a large module. It is delivered over two weeks. You will have two weeks to work through the material and complete the module’s quiz and assignment.

The first three modules of this course have laid the foundation for applying a risk-based approach to the supervision of digital financial services. You have learned about proportionality and why it is necessary for you and your organisation to become data-driven in your supervisory activities.

When applying a risk-based approach to supervision of DFS, supervisors need to cover two dimensions, namely:

  1. Prudential supervision
  2. Market conduct – or consumer protection – supervision

This module covers the prudential aspects of DFS supervision. Module 5 will cover market conduct, involving consumer protection and competition.

In Module 4, you will learn about the main prudential concerns in deposits, payments, credit, and insurance. You will also learn about developments in sustainable finance and innovative insurance, and how they could impact your work.

You will explore supervisory guidance on particularly important issues, such as anti-money laundering (AML/CFT) and virtual assets. You will also look at how new operational developments, such as cloud computing, introduce new operational risks for DFS providers. You will learn how you can apply your risk-based approach to appropriately supervise providers that rely on these new technologies.

The goal for this module is for you to implement a proportional and risk-based approach, selecting an appropriate combination of supervisory tools (including new and emerging tools), to address priority prudential risks that enable the development of inclusive DFS.

Topics

  • This module will cover the following topics:
  • Differentiate between prudential and market conduct supervision
  • Incorporating gender perspectives in prudential supervision
  • Prudential supervision for:
    • Deposits and payments
    • EMIs and protecting depositors
    • Agents
    • Credit
    • Inclusive Insurance and Innovation
    • Sustainable inclusive finance
    • AML/CTF
    • Virtual assets
    • Cloud computing
  • Data and cybersecurity-related risks
  • Balancing integrity with financial exclusion risks

Outcomes
By the end of this module, you will be able to:

  1. Identify appropriate risk-based supervisory approaches and practices relevant to proportional prudential supervision for financial inclusion.
  2. Choose an adequate combination of supervisory tools to advance financial inclusion and other statutory goals via prudential supervision.
  3. Take timely and proportionate supervisory actions to address priority prudential risks and enable the development of inclusive DFS.
  4. Identify and prioritise emerging prudential supervisory issues from innovation in business models, products and services, and technologies.
  5. Adopt proportional and inclusion-aware supervision to indirectly support the development of appropriate, financially-inclusive solutions.
In reply to First post

Re: Introduction to Module 4

by Erah, Dominic Ose Erah - Group 1
At the end of this session, I hope to gain robust knowledge of how prudential and market conduct including virtual assets, cloud and cybersecurity can help strengthening regulatory capacity to manage emerging local and global financial sector risks.
In reply to First post

Re: Introduction to Module 4

by TAHIR SAIDU - Group 1
I am looking forward to learning more about proportional prudential supervision and the appropriate supervisory approaches for the supervision of DFS in such a way that advances financial inclusion
In reply to First post

Re: Introduction to Module 4

by Faith Fxentirimam Envuladu - Group 1
I intend to acquire more knowledge on how to apply proportional, risk‑based supervision approach using appropriate supervisory tools to support safe and inclusive digital financial services.
In reply to First post

Re: Introduction to Module 4

by LEILAH ABDALAH MUBEYA - Group 6
I expect this module to provide a clear understanding of prudential supervision and how money laundering risk is integrated into supervision to ensure overall safety, soundness, and financial stability.
In reply to First post

Re: Introduction to Module 4

by Elsabet Getachew Mulugeta - Group 2
This is the center and core part of the course, I will be able to have the full picture of risk-based supervision.
In reply to First post

Re: Introduction to Module 4

by Labiba Galaudu Mustapha - Group 1
I am looking forward to learning the various approaches and practices for an effective prudential supervision
In reply to First post

Re: Introduction to Module 4

by Agaba Albert Busingye Agaba - Group 4
Under this module, am interested in enriching my knowledge on prudential supervision and consumer protection and how risk-based supervisory approaches are used on emerging prudential supervisory issues, address prudential risks and developing inclusive Digital Financial Services in the financial sector.
In reply to First post

Re: Introduction to Module 4

by Elsabet Assefa - Group 2
looking forward to the understanding of prudential supervision in the financial market context i work in.
In reply to First post

Re: Introduction to Module 4

by NGUEMO OMONIVIE AHUA - Group 1
i hope to strenghten my understanding of how to apply risk-based prudential supervision in digital financial services particularly in identifying and prioritising key risks.
In reply to First post

Re: Introduction to Module 4

by Aisha Kabir Ahmed - Group 1
I look forward to deepening my understanding of proportionate prudential oversight and effective approaches to supervising DFS while promoting financial inclusion.