Macro-prudential policy
Survey data offers chance to assess eurozone macro-prudential policies, paper argues
Data from the eurozone’s Bank Lending Survey can be used to analyse the effectiveness of different macro-prudential policies, an IMF working paper argues; subject is little known, researchers say
IMF paper compares impact of monetary and macro-prudential policies
Research considers effects of measures in ‘systemic advanced economies’ on financial conditions both at home and abroad; monetary shocks in US can have ‘significant’ impact
Korean paper explores ‘divergent’ spillovers to EMs
Macro-prudential policies key to protecting emerging markets from spillovers, research says; normalisation in the US could lead to ‘renewed tensions’
European markets may still view some banks as ‘too big to fail’, paper argues
European governments may be seen as supporting ‘national champions’ in banking, researchers say
BIS paper explores policy trade-offs in Asia-Pacific
Asia-Pacific central banks that have used macro-prudential policy to control credit growth may have faced a short-term trade-off between financial and price objectives, paper notes
Rate rises may be appropriate when asset prices are high, Fischer says
The Fed's vice-chair says raising interest rates may be appropriate if asset prices reach ‘excessively high’ levels across the economy; he weighs the options for tackling ZLB constraint
Macro-prudential limits would have had ‘substantial’ impact in Ireland last decade, paper finds
Research published by the Central Bank of Ireland models the impact of macro-prudential policies, including effects on credit available to households and house prices
Markov switching model enables diagnosis of ‘systemic financial stress episodes’, ECB paper argues
A Markov switching model can be used to diagnose episodes when both the real and the financial economies are subject to simultaneous severe stress, paper finds
Paper warns macro-prudential tools can have ‘blunt’ impact
Working paper sees potential for macro-prudential tools to have ‘aggregate’ impact, using ‘quantitative restriction’ deployed in Japan from 1970s onwards as an example
BoE’s FPC in line for powers over buy-to-let market
Government proposes handing central bank powers of direction over LTV and ICR limits for buy-to-let mortgages, over a year after the BoE first requested them
BoE paper explores monetary and macro-prudential policy interactions
Macroeconomic and financial frictions in an economy can require ‘intervention of opposite direction’ on the interest rate, which a second instrument can help mitigate, paper finds
Seacen Centre’s Genberg calls for research into effects of macro-prudential tools
Hans Genberg warns ‘we do not have much experience with the consequences’ of macro-prudential policies with respect to risk distribution and cross-border effects
Further macro-prudential policies ‘may be needed’ in UK, says IMF
Staff say existing measures have eased but not eliminated risks to household finances; encourage BoE to keep monetary policy unchanged until inflationary pressures are ‘clearer’
Carney says reciprocity ‘central feature’ in ESRB framework for spillovers
ESRB analysis shows domestic policies can be more effective if their spillovers are managed; Carney says framework for doing so will be operational ‘early next year’
Irish central bank will persist with housing measures despite public dissent
Chief economist of Ireland’s central bank says it will continue with macro-prudential measures despite public criticism; academic says measures will help slow prices but are ‘insufficient’
Review sees 'fault lines' emerging in global asset management ecosystem
Monetary Authority of Singapore review urges financial industry to remain ‘vigilant’ against emerging risks
Riksbank steps up debt warnings in stability report
An absence of measures to address high asset prices and rising debt could result in a ‘serious’ shock with ‘great’ consequences for the economy, Swedish central bank warns
Buch keen for macro-prudential tools despite no guarantee of use in ‘near future’
Bundesbank’s deputy president says it is important the authorities have the ability to nip ‘any unwelcome developments’ in the real estate market in the bud, should they arise
German interbank contagion risk concentrated around four large banks, paper argues
German researchers propose new model to calculate costs of interbank contagion
Main threat to stability from low growth, says Italian deputy
Fabio Panetta says there is ‘broad agreement’ the main danger to financial stability in the eurozone stems from low growth; credit growth ‘remains subdued’
Sweden faces ‘economic crisis’ unless government calms housing market, governor warns
Sweden’s government needs to take urgent action to calm rapidly rising house prices or face a possible economic crisis, Stefan Ingves warns; attacks lack of clarity over macro-prudential policy
Macro-prudential tools an ‘essential’ part of policy toolkit, Irish deputy says
Macro-prudential policies introduced by the Irish central bank appear to be ‘functioning as intended’, Gerlach says; joint ECB-EC statement sees measures underpinning stability
BoE’s FPC must be sharp on risks as next phase of credit cycle emerges, Cunliffe says
Cunliffe examines different approaches to setting macro-prudential policy, noting the BoE’s work towards countercyclical stress testing of banks
RBNZ: Auckland housing risks have increased
New Zealand central bank warns Chinese slowdown could affect banks' funding costs as house prices-to-income ratios rise to record highs; effect of macro-pru rules ‘too early to judge'