Shocks and macroprudential regulation down regulation. Medical search. Frequent questions

Macroprudential regulations can alleviate these financial stability concerns, they say, allowing monetary policy to focus on macroeconomic stabilization. (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)
Prudential regulation is a type of financial regulation that requires financial firms to control risks and hold adequate capital as defined by capital requirements, liquidity requirements, by the imposition of concentration risk (or large exposures) limits, and by related reporting and public disclosure requirements and supervisory controls and processes. (wikipedia.org)
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)
We also began development of the first quantitative liquidity regulations to be used in prudential regulation by the U.S. banking agencies. (harvard.edu)
Capital regulation beyond 13% capital requirements and above 5% additional liquidity are associated with excessive macroeconomic cost unlikely to be recovered from gains from increased economic stability. (iff-hamburg.de)
In this spirit, Wieland rejects the liquidity trap hypothesis by exhibiting that negative productiveness shocks are contractionary even on the zero lower bound. (cafeofdreamsbookreviews.com)

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)
It aims at breaking the "doom loop" between banks and sovereign debt, promoting financial stability and mitigating the next financial shock to the real EU economy, at the lowest possible cost to the financial institutions and to the taxpayers. (pitt.edu)
Based on existing calibration of the parameters, minimum capital ratios and implementation timeframe given to EU banks to adjust to these new rules and measures, the study finds that these reforms to the EU's banking regulation will contribute to greater financial stability and resilience to future shocks. (iff-hamburg.de)

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)
By suggesting methods to protect bond liquidation the paper intends to increase the economic resilience to sudden market shocks as seen in 2020. (aima.org)
Third, regional economies have learnt valuable lessons from the Asian financial crisis and taken steps to reduce their financial vulnerability and bolster their resilience to external shocks. (dailymirror.lk)
Economic resilience means how well an economy anticipates, prepares and recovers from external shocks (or even avoids them). (rednet.cn)
Looking through the lens of economic resilience, changes in economic readings and regulations are being seen in terms of whether they increase or decrease vulnerability, not in terms of whether they contribute to or negate economic growth. (rednet.cn)
For Ireland - a small open economy in a monetary union - this is all the more important, as building resilience through prudent fiscal policy in good times creates the necessary capacity to respond to shocks that affect our economy. (centralbank.ie)

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)
Some typically involve institutionalized measures to contain and mitigate external shocks. (rednet.cn)
Macroprudential policies are also useful to mitigate country-specific risks. (centralbank.ie)

We have long had microprudential regulation of banks and securities markets. (nber.org)
The global financial crisis taught us a lesson: microprudential regulation and supervision alone are not enough to safeguard the financial system. (bis.org)
Prudential regulation can be split into microprudential regulation that focuses on the individual firms and making sure that they can withstand shocks and macroprudential regulation that looks at the whole financial system and systemic risk. (wikipedia.org)

In particular, risks have been considerably reduced, and euro area banks are now better able to withstand shocks of the kind we have experienced in the past. (europa.eu)

This column argue that this pattern can notably exacerbate the impact of a negative supply shock such as the COVID-19 pandemic on bank lending and economic activity. (cepr.org)
When the pandemic shock first hit, businesses, companies, banks and other organisations scrambled to reprioritise their activities to safeguard health while attempting to minimise disruptions. (europa.eu)
Fiscal policy is an essential tool for policymakers to respond to such shocks (as we saw with the response to the pandemic). (centralbank.ie)

Does this make it optimal to impose capital controls or should policymakers rely on domestic macroprudential regulation? (repec.org)
As our economies continue to recover from the COVID-19 shock, policymakers can turn some of their focus from the crisis response measures we have seen enacted to more medium and longer term questions of whether our economic frameworks are fit for purpose. (centralbank.ie)
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)

Our model can generate more sizable inflation surges due to cost-push and demand shocks than a standard linearized model when inflation is high. (bankofcanada.ca)

In the second dynamic alignment paradigm, it protects unsophisticated market participants by maintaining principal-agent incentives continuously aligned in the face of aggregate shocks. (worldbank.org)
I use a theoretical model to evaluate the performance of alternative policies and find the optimal mix of macroprudential and monetary policy in response to aggregate shocks. (bankofcanada.ca)

Financial regulators need to think about business cycle fluctuations, and macroeconomic policy-makers need to think about financial regulation. (nber.org)
However, this source of funding may experience rapid expansions and contractions, as observed during the credit cycle of the 2000s, disrupting the availability of mortgage credit to households---a key macroeconomic variable and a policymaker objective in the U.S. Hence, understanding the equilibrium relation between the securitization market and mortgage credit supply is essential to design macroprudential policies that keep a stable credit supply to households. (suerf.org)
Across developing Asia, macroeconomic management has improved and authorities have intensified the use of macroprudential policies and strengthened the oversight of corporates and financial institutions. (dailymirror.lk)
Last but not the least, many Asian countries are scaling up reform efforts in their trade and investment regimes, macroeconomic management and public finance, financial regulation and public sector governance. (dailymirror.lk)
They also stress mitigating the risk and macroeconomic cost of financial instability through macroprudential regulation (e.g. reducing banks' leverage by lowering their assets-to-equity ratio). (gouv.fr)

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)
I find that they lower capital requirements more strongly under optimal policy in response to adverse shocks that trigger credit leakage to risky non-banks. (diw.de)

It is found that a policy that reduces credit fluctuations successfully reduces consumption, investment, and output volatility, but generates substantially higher unemployment fluctuations in response to productivity shocks. (lacea.org)
Moreover, the policy increases the volatility of all these variables in response to net worth shocks. (lacea.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)
Tighter macroprudential regulation also allows monetary policy to respond counter-cyclically to global financial shocks. (brookings.edu)
Even so, the financial shocks that hit the global economy in September and October were the worst since the 1930s, and they helped push the global economy into the deepest recession since World War II. (nationalmortgageprofessional.com)

We find that adverse selection amplifies the response of a bank's mortgage credit to house price shocks. (suerf.org)
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)

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)
In particular, strong and effective regulation and supervision of banking institutions, although necessary for reducing systemic risk, are not sufficient by themselves to achieve this aim. (northdenvernews.com)
The EU Banking Union combines micro- and macro-prudential regulation. (pitt.edu)
This paper draws lessons from the history of financial crises in Britain since the 1840s, pointing out that most of the systemic banking crises that have occurred in Britain since then have been triggered by monetary-policy shocks. (historyandpolicy.org)
These monetary-policy shocks were exacerbated by the Bank of England keeping interest rates too low for too long until a bullion drain, inflation, or both appeared and then raising rates too late, too much and too quickly, triggering systemic failures in the banking sector. (historyandpolicy.org)
Before joining the IMF, he worked on macroprudential policy and banking regulation at the Bank of England. (imf.org)
His research and publications cover issues of international finance and open macroeconomics (including exchange rate, monetary policy and financial dollarization issues), central banking and development banking, financial sector development and regulation, and fiscal policy. (worldbank.org)
Banking regulation: CRD IV Study is published and discussed with MEPs. (iff-hamburg.de)
This theory offers one potential justification for imposing a "macroprudential" regulation, in addition to the more traditional banking regulation. (cafeofdreamsbookreviews.com)
After many years working on monetary policy and related areas, I have recently moved towards banking regulation and supervision. (europa.eu)
Banking supervision (I will use this term to encompass regulation) is undergoing a re-examination. (europa.eu)
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 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)
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)

These reforms will continue to reduce impediments to efficient resource allocation, improve technical and managerial efficiency, enhance an economy's ability to respond to shocks, and lay the foundations for greater private investment and innovation. (dailymirror.lk)

They highlight the eurozone's solid monetary policy framework has led to low inflation and a stable exchange rate, increasing "business and financial cycle synchronization, but stronger policies to help cushion divergent shocks are needed to improve economic performance. (gouv.fr)

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)
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 Overview summarises the main points in the publication Strengthening Macroprudential Policies in Emerging Asia: Adapting to Green Goals and Fintech . (oecd-ilibrary.org)
Chapter 3 discusses new challenges related to the rise of Fintech and the importance of strengthening macroprudential policies to bring Fintech firms inside the regulatory perimeter. (oecd-ilibrary.org)
Prior to this, he was in the IMF's Strategy, Policy and Review Department, working on IMF lending and surveillance policies, emerging market issues, macro-financial spillovers and policy frameworks to address external shocks. (imf.org)

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)

SAFE said it would continue to make improvements to an integrated regulatory framework consisting of "macro-prudential + micro-regulation" when it came to cross-border capital flows, and further strengthen China's ability to prevent the risk of external shocks. (chinabankingnews.com)

Chapter 2 explores the systemic risks associated with climate change and stresses how countries in the region need to expand their macroprudential policy toolkits in order to tackle these risks and support low-carbon investments. (oecd-ilibrary.org)
This paper explores post-Lehman macroprudential regulation by interacting two types of market failures (principal-agent and collective action) with two cognition modes (unconstrained and constrained) in the context of aggregate risk. (worldbank.org)

The global financial crisis of 2007-08 and its aftermath led to a new emphasis on macroprudential policy as a means of addressing systemic risk. (oecd-ilibrary.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)

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)
What implications follow for prudential regulation and monetary policy? (diw.de)
Some countries have separated their financial regulators along the lines of prudential/consumer protection such as the UK with the Prudential Regulation Authority or in Australia with the Australian Prudential Regulation Authority. (wikipedia.org)

Reserve Requirements in the Brave New Macroprudential World ," World Bank Publications - Books , The World Bank Group, number 17584, December. (repec.org)
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)
That is, the bulk of the adjustment in the face of negative shocks that hit bank profits is borne by undistributed net income. (cepr.org)
The strong preference of banks in the euro area for smoothing dividends over the cycle implies that the adjustment in the face of shocks that hit bank profits is mainly borne by undistributed net income. (cepr.org)
Therefore, it is essential to understand the rules and regulations governing deposits into bank accounts in the UK and to be aware of any potential red flags that could trigger further investigation. (factsontaxes.com)
His research areas are commercial bank regulation and financial intermediation. (kansascityfed.org)
Is Bank Capital Regulation Driving Continued Use of the Overnight Reverse Repurchase (ON RRP) Facility? (kansascityfed.org)

We simulate the model for a positive and a negative house price shock of 7 percent magnitude to show how the aggregate mortgage credit supply is amplified in an economy with asymmetric information. (suerf.org)
Figure 1 displays the stationary cross-sectional distribution of aggregate credit for the baseline calibration, and for a negative and positive house price shock, in the asymmetric information (left panel) and complete information (right panel) economies. (suerf.org)

This article examines how trade shocks shape labour market imperfections that create market power in labour markets and prevent an efficient allocation of labour. (iwh-halle.de)

We study how information frictions in the securitization market amplify the response of mortgage credit supply to house price shocks. (suerf.org)
A quantitative application indicates that information frictions in securitization can amplify the response of credit supply to house price shocks by a factor between 1.5 to 2.0. (suerf.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)

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)

Otherwise, export demand and import competition shocks tend to fortify existing distortions by amplifying labour market power structures. (iwh-halle.de)

The findings point to potential gains from policy complementarities between macroprudential regulation and active labor market interventions over the business cycle. (lacea.org)

Consistent with stylized facts, the shock triggers an expansion in domestic credit and activity, asset price pressures, and a real appreciation. (repec.org)
In accordance with the paper, crypto property resemble dangerous asset courses of their propensity for mispricing and shock transmission. (tecnogerencia.com)

In the third collective action paradigm, regulation arises in response to the socially inefficient yet rational financial instability resulting from uninternalized externalities. (worldbank.org)

The link between formal credit markets, input credit between firms, and self-employment plays a key role in explaining the adverse impact of macroprudential policy on unemployment dynamics. (lacea.org)
Do Adverse Oil Price Shocks Change Loan Contract Terms for Energy Firms? (kansascityfed.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)
Notes: Each density represents the simulated distribution of mortgage credit volumes across banks for different values of the house price shock, π. (suerf.org)
The UK government has implemented strict regulations to prevent money laundering and terrorist financing, which require banks to monitor their customers' accounts for suspicious activities. (factsontaxes.com)
Customers should regularly review their deposit protection and consult with their banks or financial advisers for the most up-to-date information on deposit limits and other related regulations. (factsontaxes.com)
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)
Assessing Targeted Macroprudential Financial Regulation: The Case of the 2006 Commercial Real Estate Guidance for Banks' with William F. Bassett, 2017. (kansascityfed.org)
and the founding regulation of the SSM - the SSM Regulation - gives it extensive powers over the banks under its direct responsibility, covering all supervisory tasks. (europa.eu)

Macroprudential powers were conferred on the ECB in 2014. (europa.eu)

How asymmetries of information can amplify house price shocks to the supply of mortgage credit? (suerf.org)
We are more susceptible to shocks that arise in the global economy and this risk (which is greater than for many of our European peers) is a factor in the provision of credit in Ireland. (centralbank.ie)
The paper then shows that the model is consistent with the cyclical behavior of both labor and credit markets in Latin American economies and analyzes the aggregate consequences of cyclical macroprudential policy for labor market and aggregate dynamics. (lacea.org)
How can macroprudential policy and monetary policy stabilize segmented credit markets? (bankofcanada.ca)

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)
Uncertainty has been the defining feature of this unprecedented shock. (europa.eu)

This memorandum of understanding updated in August 2021 between the Minister of Finance and our Governor defines macroprudential policy and the operating guidelines we shall operate under when considering the use of macroprudential policy. (rbnz.govt.nz)

Effective macroprudential policy depends on the timely use of instruments. (rbnz.govt.nz)
Since dangers might focus in sure actors like stablecoin issuers, the paper advocates increasing macroprudential instruments to give attention to crypto-specific dangers. (tecnogerencia.com)
To handle these challenges, the paper proposes increasing macroprudential coverage instruments to cowl crypto-specific dangers. (tecnogerencia.com)
The dataset presented in this article contains the data gathered when surveying existing "green" macroprudential regulations and instruments. (bvsalud.org)

Instead, I will concentrate on recent research on international macroprudential regulation. (nber.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)

In the first time consistency paradigm, regulation offsets the moral hazard implications of efficient but time inconsistent post-crisis bailouts. (worldbank.org)
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)

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)

Global financial regulation: where next? (europa.eu)

Given cross-border spillovers, the working group pressured the necessity for enhanced worldwide cooperation on crypto regulation. (tecnogerencia.com)

Macroprudential policy has an important role to play in supporting the transition to a low-carbon and digital economy. (oecd-ilibrary.org)

Capital Controls or Macroprudential Regulation? (repec.org)

Anatomy18

Organisms16

Diseases22

Chemicals and Drugs89

Analytical, Diagnostic and Therapeutic Techniques and Equipment40

Psychiatry and Psychology6

Phenomena and Processes63

Disciplines and Occupations1

Anthropology, Education, Sociology and Social Phenomena1

Information Science5

Named Groups1

Health Care13

Allowing monetary1

Liquidity8

Stability4

Resilience6

Mitigate5

Microprudential regulation3

Withstand shocks1

Pandemic3

Policymakers3

Demand Shocks1

Aggregate shocks2

Macroeconomic5

Optimal4

Volatility2

Financial shocks3

Bank's3

Banking14

Reforms1

Policy framework1

Policies6

Authorities2

Framework1

Explores2

Systemic risk1

Desirable2

Prudential regulation3

Bank8

Asymmetric2

Imperfections1

Frictions2

Macro-prudential1

Risks1

Labour market1

Business cycle1

Asset2

Response1

Firms2

Banks7

Powers1

Credit4

Uncertainty2

20211

Instruments4

International2

Implications2

Measures2

Global1

Necessity1

Economy1

Capital Controls1