Macro-prudential policy
Europe could learn from Germany’s macro-prudential approach
Germany’s approach to macro-prudential oversight could offer insights into how to democratise ‘hard’ policy tools and enshrine independence at a time when more power is being transferred to the ECB
New central bank policy mandates could cause vicious feedback loops
The trend for central banks to take on mandates for prudential policy in addition to monetary policy could cause dangerous feedback loops in the absence of a well-defined risk appetite
German experience offers macro-prudential lessons for Europe, says Buba's Dombret
Germany's approach to macro-prudential oversight could offer insights into how to democratise ‘hard' policy tools and define the role of national central banks, says the Bundesbank's Andreas Dombret
Regulators need a ‘holistic' view of the global financial system, says RBA's Debelle
RBA assistant governor Guy Debelle said that limited understanding of how financial reforms interact should not prompt regulators to ‘pick and choose' or delay their implementation
IMF reports show French and German banking sectors are key to European stability
IMF urges France to do away with tax disincentives to deposits in an effort to broaden banks' funding sources; emphasises Germany's role in forging a robust eurozone financial architecture
RBI governor champions ‘logically robust' financial regulation
Duvvuri Subbarao says financial markets stand out because they are not self-correcting, and because financial firms are highly leveraged and uniquely interconnected
Intertwined Caribbean need stronger cross-border regulation, argues IMF paper
While stressing that greater financial interconnectedness could have a beneficial impact, the paper warns of regulatory arbitrage and underestimation of systemic risks in the region
Nigeria's financial system stable despite major challenges
A handful of lenders continue to dominate the country's banking industry, but asset quality and capitalisation levels ‘improved significantly' last year, according to the central bank's latest stability report
Research investigates factors behind region-wide banking stability
New paper finds more competitive regional banking systems are less fragile; contagion is more dangerous when the host's banks are more liquid and better capitalised
Singapore brings inflation back in range, but household debt worries persist
Monetary Authority of Singapore warns a return to normal global monetary conditions will carry risks; says 'some' households will be at risk when interest rates rise as US tapers quantitative easing
IMF ‘cookbook' paper outlines basic recipe for macro-pru policy
The paper provide new evidence on the effectiveness of different policy instruments using survey data
IMF paper highlights importance of macro-pru and monetary policy co-ordination
Researchers find that policymakers tend to use macro-prudential instruments more quickly ‘if the ability to conduct monetary policy is somehow constrained'
Bank of England deputy tackles macro-prudential effects on banking
Paul Tucker tells Helsinki conference that banks' ‘core comparative advantage' would survive the removal of the ‘too-big-to-fail' subsidy
BIS paper finds more evidence backing ‘leaning against the wind'
Working paper by BIS and Bank of Italy researchers find such policies are desirable in the case of supply-side shocks - especially for economies with high private-sector indebtedness
Sweden's Riksbank holds rates, but new deputy dissents
Ingves suggests the possibility of another increase in mortgage risk-weights after they were raised to a minimum of 15% in April; Riksbank estimates consumer price inflation to remain at 1% in 2013
RBNZ bulletin examines last crisis through ‘macro-prudential lens’
Article finds that a counter-cyclical capital buffer and changes to the core funding ratio could have been ‘usefully employed’ in 2004 to build financial sector resilience
RBNZ deputy threatens use of loan-to-value restrictions to curb housing demand
Grant Spencer says interest rate hike would not be an 'appropriate response' to strong housing demand while macro-prudential intervention could be effective
Monetary policy links to financial stability ‘are not straightforward', says Fed paper
Research paper from Fed's Finance and Economics Discussion Series finds monetary policy and financial stability concerns can be complementary - but the connections are complex
RBNZ unveils 2013-2016 ‘statement of intent'
New Zealand central bank intends to make better use of a wider range of communication tools, as well as beefing up its macro-prudential toolkit
ESRB issues macro-pru advice, as IMF warns over possible conflicts
European Systemic Risk Board recommends five ‘intermediate objectives' for macro-prudential policies in the EU; IMF paper warns of potential conflicts with micro-prudential measures
RBNZ’s prudential supervision head backs simpler regulation
Toby Fiennes expresses ‘sympathy’ for arguments in favour of simpler banking regulation, but cautions that simplicity can bring problems of its own; gives hints as to future of regulation
Ingves wants Riksbank monopoly over macro-prudential policy
Stefan Ingves dismisses proposals for central bank and financial services authority to share responsibility for macro-prudential responsibility
ECB paper finds cost of macro-prudential policies may outweigh benefits
Working paper finds macro-prudential policies can be effective in deflating asset bubbles, but warns the cost of doing so may be higher than the benefit
Swedish deputy says monetary policy must remain as tool for dealing with financial imbalances
Per Jansson says macro-prudential policies will only complement, and not replace, the Riksbank’s use of its benchmark interest rate to lean against financial imbalances