Macro-prudential policy
Irish deputy defends macroprudential policies
Sharon Donnery says macroprudential housing policies would have limited Ireland’s financial crisis; leaked parliamentary report calls for bank to ‘urgently’ review measures
‘Urgent’ measures needed to counteract household debt – Riksbank report
Finansinspektionen needs powers to implement effective macro-prudential policies in order to combat household indebtedness, latest financial stability report says
Eurobonds could be double-edged sword, researchers say
Banque de France researchers propose a new model of banks’ holdings of own-country sovereign debt; high holdings deter moral hazard but may exacerbate crises, they say
Lipton: co-ordinated approach to capital flows ought to be considered
IMF first deputy managing director says it is time for ‘new generation of reforms’; capital flow reversibility has costs as well as benefits
Arab countries must improve macro-prudential arrangements – IMF paper
Many Arab countries need to improve their macro-prudential policy frameworks, an IMF working paper argues; regulators need policy mandates and better information
Regulators must improve co-operation in monitoring shadow banks – Irish governor
Regulators must develop better systems for managing and sharing information on shadow banks, Ireland’s central bank governor says; better understanding of “geography of risk” needed
Riksbank-FI merger not on the table – Swedish minister
Per Bolund says the government is not actively considering radical reform options discussed by the Riksbank, and defends Swedish approach to macro-prudential independence
German supervisors need more granular data – IMF staff
Staff say concerns about a housing bubble “look premature” but better data would help the authorities be prepared for imbalances; urge faster progress on structural reforms
BoE paper evaluates macro-prudential roles of bank capital regulation and monetary policy
Authors find counter-cyclical regulation is more effective than monetary policy in promoting stability in the wake of a credit shock
Political and public support ‘critical’ for macro-prudential policy, says Kohn
Effective communication can help ensure public support for macro-prudential policy, BoE FPC member says; lack of support could encourage political interference
Inflation targeting ‘key' for successful de-dollarisation – IMF working paper
Peru's success story suggest "sound" monetary and macro-prudential policy can help de-dollarisation, paper says; favourable global environment helped in case of Peru
IMF staff call for new macro-prudential tools in Denmark
Danish authorities told to consider placing limits on debt to income ratios; macro-prudential measures suggested by IMF staff to complement existing regulation
BoE paper explores impact of prudential measures abroad on UK bank lending
No “significant” spillovers to bank lending following prudential measures, authors find, while composition of lending can change when domestic actions are taken
Constâncio points to systemic risk from investment funds
ECB vice-president Vítor Constâncio says increased size and risk-taking by under-regulated investment funds call for new powers for regulators
Macro-prudential policies should apply to shadow banking sector, researchers argue
Macro-prudential policies can have substitution effects between bank and non-bank credit, working paper says; macro-prudential policy should be extended towards the non-bank sector
Carney speaks of ‘new’ financial system to support sustainable finance
Bank of England governor launches FAIR initiative; FSB members developing more ‘effective’ macro-prudential policies to support system
Swedish regulator takes second stab at amortisation rule
Macro-prudential regulator unveils plans for mandatory amortisation similar to those struck down by the Swedish judiciary in 2015
Bank CEOs’ pay can hit regulation, economist argues
Washington University economist Anjan Thakor argues linking bank chief executives’ pay to returns on equity can have adverse effects on banking regulation
Prudential measures may create risks for developers – RBA
Tighter regulations designed to tackle housing risks may cause problems for large building projects started before the tougher rules came in
Riksbank lays out ideas for macro-prudential overhaul
Executive board accepts many – but not all – recommendations of King and Goodfriend review, and offers some radical ideas of its own
Poloz: CCA central banks ‘challenged’ in meeting their core objectives
New BIS Americas head believes financial stability should be built into regional policy decision-making even when not specifically stated as a core mandate; macro-pru "in sight" for many in region
Seychelles central bank will chair new financial stability committee
Advisory body will comprise representatives from four different public bodies and meet on a quarterly basis; supported by new financial stability unit within central bank
European Central Bank outlines three models underpinning macro-prudential analysis
First biannual macro-prudential bulletin lays out details of three key models, dealing with capital requirements, household finances and bank vulnerabilities
Governor sees Chile progressing with macro-prudential framework
Working paper outlines importance of macro-prudential policy in maintaining financial stability; Vergara and Raddatz identify counter-cyclical capital buffer as a possible tool for the future