• Sudden Floods, Macroprudential Regulation and Stability in an Open Economy ," Centre for Growth and Business Cycle Research Discussion Paper Series 203, Economics, The University of Manchester. (repec.org)
  • Sudden floods, macroprudential regulation and stability in an open economy ," Journal of International Money and Finance , Elsevier, vol. 48(PA), pages 68-100. (repec.org)
  • Macroprudential regulations can alleviate these financial stability concerns, they say, allowing monetary policy to focus on macroeconomic stabilization. (brookings.edu)
  • This dual nature of financial stability is reflected in the recent financial regulations introduced at an international and national level. (nbp.pl)
  • Macroprudential Regulation and Macroeconomic Activity , Journal of Financial Stability, 2016. (bankofengland.co.uk)
  • The Division of Supervision and Regulation exercises and oversees the Board's supervisory and regulatory authority over a variety of financial institutions and activities with the goal of promoting a safe, sound, and stable financial system that supports the growth and stability of the U.S. economy. (federalreserve.gov)
  • It elaborates on the need to ensure financial and overall economic stability in the region through improved financial regulation and other policy measures to minimize the emergent risks. (springer.com)
  • Macro-prudential regulation concerns itself with the stability of the financial system as a whole. (epw.in)
  • By contrast, micro-prudential regulation, consisting of such measures as the certification of those working in the financial sector and rules on how financial institutions operate, concerns itself with the stability of individual entities and the protection of individuals. (epw.in)
  • In order to measure systemic risk, macroprudential regulation relies on several indicators. (wikipedia.org)
  • In my remarks this afternoon I will focus principally on the project of recasting the regulation and supervision of large financial firms so as to realize the macroprudential objective of reducing systemic risk. (federalreserve.gov)
  • Lying behind the various positions in this debate are differing views on how systemic risk propagates, and thus on the relative efficacy of monetary versus macroprudential policies. (federalreserve.gov)
  • the challenges of assessment of systemic risk and macroprudential regulation. (lse.ac.uk)
  • Macroprudential Policy and Bank Systemic Risk: Does Inflation Targeting Matter? (repec.org)
  • This memorandum provides clarity over the purpose and instruments of macroprudential policy, so that emerging systemic risks are able to be addressed in a timely manner. (rbnz.govt.nz)
  • It is recognized as a necessary ingredient to fill the gap between macroeconomic policy and the traditional microprudential regulation of financial institutions. (wikipedia.org)
  • The global financial crisis taught us a lesson: microprudential regulation and supervision alone are not enough to safeguard the financial system. (bis.org)
  • We have long had microprudential regulation of banks and securities markets. (nber.org)
  • In particular, for the selected high, middle and low-income countries surveyed, the dataset contains information on the type of regulation, the institution responsible for its implementation or promotion, the official reference and the related link to the document as of October 2018. (mendeley.com)
  • On theoretical grounds, it has been argued that a reform of prudential regulation should integrate three different paradigms: the agency paradigm, the externalities paradigm, and the mood swings paradigm. (wikipedia.org)
  • We consider the optimality of various institutional arrangements for agencies that conduct macro-prudential regulation and monetary policy. (imf.org)
  • A corollary of this view is that a "macroprudential" perspective--generally characterized as focused on the financial system as a whole as opposed to the well-being of individual firms--should be added to traditional prudential regulation. (federalreserve.gov)
  • What implications follow for prudential regulation and monetary policy? (diw.de)
  • A micro -prudential regulation might, for example, limit the loan-to-value ratio for individual mortgages or set capital minimums for individual lenders at levels that are figured by taking the probability of housing price fluctuations as exogenous. (nber.org)
  • Demonstrate knowledge and understanding of how prudential regulation and the conduct of business regulation are managed and supervised by multi-agency regulatory bodies in highly developed financial markets. (kent.ac.uk)
  • In the aftermath of the late-2000s financial crisis, there is a growing consensus among policymakers and economic researchers about the need to re-orient the regulatory framework towards a macroprudential perspective. (wikipedia.org)
  • But only in the early 2000s-after two decades of recurrent financial crises in industrial and, most often, emerging market countries-did the macroprudential approach to the regulatory and supervisory framework become increasingly promoted, especially by authorities of the Bank for International Settlements. (wikipedia.org)
  • Our macroprudential policy framework and related quantitative assessments, providing a macroprudential dimension to stress tests of the banking sector, will be cornerstones of this process. (europa.eu)
  • The international practice of macroprudential policy is an ongoing area of development and it is expected that the Bank's macroprudential policy framework will evolve over time. (rbnz.govt.nz)
  • We will advise the Minister of any proposed changes to the macroprudential framework that would extend the use of macroprudential instruments to non-banks, including any changes to the Bank's powers or involvement of other agencies that might be required. (rbnz.govt.nz)
  • The crisis was thus a catalyst for the rise of macroprudential policies. (bis.org)
  • This dissertation consists of four essays that investigate the economic consequences of frictions in credit markets and the implications for macroprudential and monetary policies. (diw.de)
  • This dataset is related to the research article DÓrazio, P. and Popoyan, L. 2019, "Fostering green investments and tackling climate-related financial risks: which role for macroprudential policies? (mendeley.com)
  • Jens Weidmann: The relationship between monetary and macroprudential policies - black and white or shades of grey? (bis.org)
  • This was a long run-up, but it does lead to one of the key issues addressed at this year's meeting: What's behind the special relationship between monetary and macroprudential policies? (bis.org)
  • The Global Financial Crisis fostered the design and adoption of macroprudential policies throughout the world. (ssrn.com)
  • What, if any, is the relationship between monetary and macroprudential policies? (ssrn.com)
  • In particular, how does the effectiveness of macroprudential policies (or lack thereof) influence the conduct of monetary policy? (ssrn.com)
  • In the years since the severe global financial crisis of 2008, 1 macroprudential policies have attracted interest as a potential additional set of tools to complement ordinary monetary policy, a possible means of counteracting financial market excesses and subsequent crashes. (nber.org)
  • Studies in this week's Hutchins Roundup find that macroprudential policies dampen global financial shocks in emerging markets, bank credit decisions exert substantial effects on upward mobility, and more. (brookings.edu)
  • Policies targeting bank capital and liquidity, foreign exchange, and risky forms of credit are more effective than conventional tools such as capital controls but become less effective at stringent levels of regulation. (brookings.edu)
  • Is smaller housing size a consequence of land price policies and building permit regulations? (kth.se)
  • However, macroprudential regulation remains essential to mitigate booms and busts in asset prices. (repec.org)
  • However, macroprudential policy can surely mitigate the most harmful manifestations of the financial cycle - especially in the current low interest rate environment that encourages excessive risk-taking. (bis.org)
  • We show that changes in bank capital requirements lead to credit leakage between shadow and commercial banks, and that monetary policy can partly mitigate undesired leakage to the shadow banking sector when banking regulation is tightened. (diw.de)
  • This module aims to develop the ability to analyse financial crises and bank regulation, examining the roots, consequences and remedies for the financial crises with the special emphasis on the current global financial crisis. (kent.ac.uk)
  • Prevention of future crises calls for not just more regulation per se, but better regulation - in particular, regulation with a greater macro-prudential orientation. (epw.in)
  • Today, over 90% of world economies have at least one macroprudential policy measure in place. (bis.org)
  • He is a macroeconomist with interest in macroprudential policy, real-financial sector linkages and issues related to corporate investment and productivity. (bankofengland.co.uk)
  • As documented by Clement (2010), the term "macroprudential" was first used in the late 1970s in unpublished documents of the Cooke Committee (the precursor of the Basel Committee on Banking Supervision) and the Bank of England. (wikipedia.org)
  • The module will cover topics including the Financial Crisis, banking supervision and regulation, the Basle Accord, banking failures, rating agencies and Financial Crisis, the role of international financial institutions. (kent.ac.uk)
  • Demonstrate knowledge, critical analysis and understanding of regulations and supervision of banking and non-banking financial institutions. (kent.ac.uk)
  • Demonstrate knowledge and understanding of various concepts, principles and key issues centring the role, operations and working mechanism of regulation and supervision of financial institutions. (kent.ac.uk)
  • Read and summarise transactions, financial statement, and conduct of business operation relating to financial services regulation and supervision. (kent.ac.uk)
  • In conducting macroprudential policy, the Bank seeks to reduce or manage the risks to the financial system arising from extremes in the credit cycle or developments in liquidity conditions and global debt markets, through the use of the prudential instruments listed below. (rbnz.govt.nz)
  • The objective of the Bank's macroprudential policy is to increase the resilience of the domestic financial system and counter instability in the domestic financial system arising from credit, asset price or liquidity shocks. (rbnz.govt.nz)
  • The instruments of macroprudential policy are designed to provide additional buffers to the financial system (for example, through changes in capital, lending and liquidity requirements) that vary with the macro-credit cycle. (rbnz.govt.nz)
  • Managing Elevated Risk: Global Liquidity, Capital Flows, and Macroprudential Policy-An Asian Perspective " also explores the range of policy options that may be deployed to address the impact of global liquidity on domestic financial and socio-economic conditions including income inequality. (springer.com)
  • Prior to the global financial crisis, only a few countries in the EU made use of macroprudential measures, and there was a great deal of uncertainty over which instruments to choose - and how to calibrate them. (bis.org)
  • Before addressing the macroprudential dimension of regulating large financial firms, however, let me provide some context by briefly reviewing the evolving idea of macroprudential policy. (federalreserve.gov)
  • This paradigm, however, assumes that risk arises from individual malfeasance, and hence it is at odds with the emphasis on the system as a whole which characterizes the macroprudential approach. (wikipedia.org)
  • A macro -prudential approach recognizes that housing prices are endogenous, and that during a credit-fueled housing boom, the probability of a crash is greater and so regulations on individual borrowers and lenders may need to be set more stringently. (nber.org)
  • The findings highlight that policymakers should take into consideration not only the symmetric but also the asymmetric causal effects of reforms aimed at enhancing banking regulation and such reforms should be well-targeted and well-designed for them to stimulate bank credit delivery. (bvsalud.org)
  • A role for a forward-looking macroprudential supervisor, moderating uncertainty and alert to the risks of financial innovation, is therefore justified. (wikipedia.org)
  • Policy and academic writing generally limits the term "macroprudential" to measures directed specifically at countering risks in the financial system that, if realized, can severely impact real activity. (federalreserve.gov)
  • The main goal of macroprudential regulation is to reduce the risk and the macroeconomic costs of financial instability. (wikipedia.org)
  • The authors use simulations within the BoC-GEM-FIN, the Bank of Canada's version of the Global Economy Model with financial frictions in both the demand and supply sides of the credit market, to investigate the macroeconomic implications of changing bank regulations on the Canadian economy. (bankofcanada.ca)
  • Financial regulators need to think about business cycle fluctuations, and macroeconomic policy-makers need to think about financial regulation. (nber.org)
  • Tighter macroprudential regulation also allows monetary policy to respond counter-cyclically to global financial shocks. (brookings.edu)
  • Moreover, positive shocks to bank credit delivery Granger caused negative shocks to banking entry barriers, activity restrictions or capital regulations, while negative shocks to mixing of banking and commerce restrictions Granger caused positive or negative shocks to bank credit delivery. (bvsalud.org)
  • This paper presents a tractable model to show that it is desirable to employ both types of instruments: Macroprudential regulation reduces overborrowing, while capital controls increase the aggregate net worth of the economy as a whole by also stimulating savings. (repec.org)
  • However, it is acknowledged that, in some circumstances, it may be desirable to apply macroprudential instruments more widely. (rbnz.govt.nz)
  • The book is primarily aimed at policy makers, financial market regulators and supervisory agencies to help them improve national regulatory systems and to promote harmonization of national regulations and practices in line with global standards. (springer.com)
  • During the post-crisis period, macroprudential authorities came into existence in almost all EU Member States 4 , and the policy toolkit was built up. (bis.org)
  • The ECB shares responsibility for macroprudential policy in the euro area with the national authorities who actually implement macroprudential measures. (europa.eu)
  • As a result, we will consider any interaction with monetary policy settings when implementing macroprudential policy and will explain the implications, if any, for monetary policy. (rbnz.govt.nz)
  • Compounding the lack of information, crisis-driven legislation is sticky, but financial markets are dynamically innovative, which can undermine the efficacy of regulation. (bvsalud.org)
  • These are some of the examples of the growing number of macroprudential measures used across the world. (bis.org)
  • Harmonised or not, macroprudential measures have been implemented in a relatively consistent manner across Europe. (bis.org)
  • He has in mind macroprudential measures: regulations, incentives, taxes. (euromoney.com)
  • Use subject knowledge to critical analyse and synthesise the problem and provide a reasoned response to that problem in the context of financial regulation. (kent.ac.uk)
  • This study aimed to empirically determine the symmetric and asymmetric causal relationship between banking regulation and bank credit delivery using a context of 23 sub-Saharan African countries from 1995 to 2017. (bvsalud.org)
  • In my remarks, I will consider three dimensions to macroprudential policy-making: the international, the European, and the domestic, or national, level. (bis.org)
  • The Policy Effectiveness and Assessment section focuses on understanding the economics of financial regulation. (federalreserve.gov)
  • The findings of the stress test will be reported annually, on an aggregate basis, as part of the NAIC's continued macroprudential monitoring efforts. (mayerbrown.com)
  • Does this make it optimal to impose capital controls or should policymakers rely on domestic macroprudential regulation? (repec.org)
  • In our baseline calibration based on the East Asian crisis countries, we find optimal capital controls and macroprudential regulation in the magnitude of 2 percent. (repec.org)
  • In the third essay, I turn to the optimal design of macroprudential regulation when credit is intermediated by traditional banks and unregulated shadow banks. (diw.de)
  • Regulators face a trade-off related to the composition of credit when deciding on optimal regulation. (diw.de)
  • Mechanisms of self-regulation and market discipline-such as corporate governance, internal risk management, private audits, and discipline by creditors-failed to prevent the build-up of risk. (imf.org)
  • Section staff work on conducting ex ante analysis of the costs and benefits of pending regulations as well as the ex post assessment of existing regulations. (federalreserve.gov)
  • This paper supersedes "How does macroprudential regulation change bank credit supply? (nber.org)
  • In the short run, bidirectional symmetric causality existed between banking entry barriers and bank credit delivery, as well as a one-way symmetric causal flow running from bank credit delivery to banking capital regulations. (bvsalud.org)
  • A single speech cannot hope to touch on, much less do justice to, the many theoretical and policy issues encompassed by the term macroprudential. (federalreserve.gov)
  • The role of macroprudential regulation is particularly stressed by the last two of them. (wikipedia.org)
  • Second, macroprudential policy based on robust quantitative assessments should play a crucial role in sustaining the resilience of the financial sector over the financial cycle. (europa.eu)
  • The module also aims to understand the complexity of the financial crisis and the role of bank regulation. (kent.ac.uk)
  • An International Monetary Fund policy study argues that risk externalities between financial institutions and from them to the real economy are market failures that justify macroprudential regulation. (wikipedia.org)
  • Instead, I will concentrate on recent research on international macroprudential regulation. (nber.org)
  • Stanley Fischer, vice-chair of the US Federal Reserve System, has criticised attempts to unwind the banking regulations implemented in the US in the aftermath of the financial crisis. (centralbanking.com)
  • This dataset contains the data gathered when surveying the existing "green" macroprudential regulations and instruments. (mendeley.com)
  • Effective macroprudential policy depends on the timely use of instruments. (rbnz.govt.nz)
  • This memorandum covers the application of macroprudential policy instruments to the registered banks, which account for the major share of domestic lending to households and businesses in New Zealand. (rbnz.govt.nz)
  • Reserve requirements in the brave new macroprudential world ," Policy Research Working Paper Series 6793, The World Bank. (repec.org)
  • On 2 August the European Central Bank published a working paper on macroprudential regulation of investment funds. (aima.org)
  • Section economists also engage in academic research on topics related to banking and financial regulation. (federalreserve.gov)
  • There was a belief that "light-touch" regulation and market discipline would suffice to ensure efficient and stable financial markets. (imf.org)
  • Macroprudential Regulation and Investment. (stir.ac.uk)
  • Capital Controls or Macroprudential Regulation? (repec.org)
  • This is because of the growing size and risk-taking activity of non-banks which may call for macroprudential powers and tools in this area. (europa.eu)
  • Section A. Risk and Regulation - Introduction and Overview: Sets out the problem of risk management and regulation. (lse.ac.uk)
  • Reserve Requirements in the Brave New Macroprudential World ," World Bank Publications - Books , The World Bank Group, number 17584, December. (repec.org)