Macroprudential frameworks, implementation and relationship with other policies

Bank for International Settlements

No 94 in BIS Papers from Bank for International Settlements

Abstract: Emerging market central banks have a long history of using macroprudential instruments. But while most central banks carry a heavy responsibility for financial stability, legal objectives are generally vague, do not define success or failure, and say nothing about competing objectives. This complicates both accountability and the communication of macroprudential decisions.Participants drew several lessons from their experience with implementing macroprudential instruments. First, macroprudential authorities need to act early if they want to address systemic risk effectively. Second, building buffers or shifting the composition of credit is easier than managing the cycle. Third, macroprudential measures tend to be better at constraining booms than at dampening busts. Fourth, although macroprudential tools could, in principle, be targeted very precisely, circumvention by lenders and borrowers require more broad-based approaches. Fifth, macroprudential measures and monetary policy can reinforce each other when used in the same direction. Sixth, the jury is still out whether macroprudential instruments could be used effectively to address regional disparities within economies.This volume collects the background papers of a meeting of Deputy Governors of central banks from emerging market economies to exchange their experience with designing macroprudential frameworks and implementing macroprudential instruments.

Date: 2017 Written 2017-12
ISBN: ISBN 978-92-9259-114-4
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Chapters in this book:

Macroprudential frameworks, implementation and relationship with other policies , pp 1-5

Christian Upper

Macroprudential frameworks: objectives, decisions and policy interactions , pp 7-24

Agustín Villar

Macroprudential frameworks: implementation and effectiveness , pp 25-47

Yavuz Arslan and Christian Upper

Macroprudential frameworks: communication , pp 49-56

Nikhil Patel

Macroprudential frameworks: cross-border issues , pp 57-63

Nikhil Patel

Macroprudential policy framework, implementation and relationships with other policies , pp 65-75

Central Bank of Argentina

Macroprudential policy in Brazil , pp 77-86

Maurício Costa de Moura and Fernanda Martins Bandeira

Macroeconomic and financial volatility and macroprudential policies in Chile , pp 87-98

Rodrigo Cifuentes, Sebastián Claro and Alejandro Jara

Macroprudential goals, implementation and cross-border communication , pp 99-102

The People’s Bank of China

The macroprudential policy framework in Colombia , pp 103-128

Hernando Vargas, Pamela Cardozo and Andrés Murcia

Assessing the impact of macroprudential tools: the case of Israel , pp 107-218

Nadine Baudot-Trajtenberg, Nitzan Tzur-Ilan and Roi Frayberg

Should monetary policy pay attention to house prices? The Czech National Bank’s approach , pp 129-140

Mojmír Hampl and Tomáš Havránek

Hong Kong’s property market and macroprudential measures , pp 141-152

Hong Kong Monetary Authority

Regionally-differentiated debt cap rules: a Hungarian perspective , pp 153-178

Péter Fáykiss, Márton Nagy and Anikó Szombati

Macroprudential frameworks, implementation, and relationship with other policies , pp 179-187

Reserve Bank of India

Indonesia: the macroprudential framework and the central bank’s policy mix , pp 189-205

Perry Warjiyo

Macroprudential frameworks, implementation and relationship with other policies in Korea , pp 219-229

Ho Soon Shin, Jung Yeoun Lee, Jungmin Park

Macroprudential frameworks: Implementation, and relationship with other policies – Malaysia , pp 231-238

Central Bank of Malaysia

On the relationship between macroprudential policy and other policies , pp 239-255

Manuel Ramos-Francia and Santiago García-Verdú

Implementation of macroprudential policy in Peru , pp 257-275

Renzo G Rossini and Zenón Quispe

Macroprudential frameworks, implementation, and communication strategies – The Philippines , pp 277-288

Diwa C Guinigundo

Institutional and operational aspects of macroprudential policy in central and eastern European EU member states , pp 289-303

Piotr Szpunar

The macroprudential policy framework in Russia , pp 305-319

Elizaveta Danilova and Maxim Morozov

Macroprudential policies: A Singapore case study , pp 321-327

Monetary Authority of Singapore

Macroprudential frameworks, implementation and relationships with other policies , pp 329-337

South African Reserve Bank

Macroprudential framework – the case of Thailand , pp 339-348

Bank of Thailand

Financial stability and macroprudential policy in Turkey , pp 349-364

Murat Uysal

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