Macroprudential Policy and Financial Stability in the Arab Region

Ananthakrishnan Prasad, Heba Abdel Monem and Pilar Garcia Martinez ()

No 2016/098, IMF Working Papers from International Monetary Fund

Abstract: Several characteristics of the structure of the Arab economies, their economic policy framework, and their banking systems make macroprudential policy a particular relevant tool. For most oil exporters, heavy reliance on the extractive sector for generating fiscal revenues and export earnings translates into increased vulnerabilities to oil price shocks. In the case of oil importers, relatively small external and fiscal buffers make them highly vulnerable to shocks. This paper discusses the experience of Arab countries in implementing macroprudential policies and contains recommendations to strengthen their macroprudential framework.

Keywords: WP; capital market; banking sector; legal reserve; price index; liquidity window; market cap; private sector; Macroprudential policy; systemic risk; credit; financial stability; a number of central banks; supervisory function; countries central banks; liquidity level; monetary policy independence; liquidity regulation; capital market authority; FX loan; Financial sector stability; Macroprudential policy instruments; Global (search for similar items in EconPapers)
Pages: 57
Date: 2016-05-20
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Citations: View citations in EconPapers (7)

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