Macro-prudential policy
Communicating macroprudential policy
A sound communications strategy can enhance the impact of macroprudential policy actions and build the political support needed for such steps, Tim Ng writes
White emphasises use of Austrian school in policymaking
Bank for International Settlements former economic adviser William White says use of Austrian school assumptions about the financial system could help prevent further crises
PBoC’s Zhou wants enhanced macroprudential policy in China
People’s Bank of China governor Zhou Xiaochuan says macroprudential policy must keep pace with the country’s financial growth
G20 calls for bigger, better FSB to carry reform agenda
G20 leaders at Seoul summit identify areas in which further progress in needed, calling on Financial Stability Board to take the lead and drive reform; ask FSB to report on what extra resources it needs
New Fed office to aid stability, macroprudential efforts
Federal Reserve sets up financial stability policy office to coordinate institution-wide analysis on stability risks; J. Nellie Liang named director of office
Bundesbank’s Dombret calls for international effort to close information gaps
Bundesbank executive board member Andreas Dombret says international approach will address information gaps in shadow banking sector
Bolivia’s Tellería on central banks and regulation
Central Bank of Bolivia acting president Gabriel Loza Tellería says central banks must take part in prudential regulation; need new macroprudential mandate
G30 unveils macroprudential manual
Group of Thirty recommends dual approach to macroprudential policy; says combination of fixed and flexible tools will equip supervisors to address systemic risks
Fed’s Yellen: macroprudential policy must balance rules and discretion
Federal Reserve vice chair Janet Yellen says macroprudential supervisors should be guided by fixed rules, but have discretionary capacity to surprise firms
BIS’s Caruana says central banks have pivotal role in regulation
Bank for International Settlements general manager Jaime Caruana says central banks are best placed and have the necessary expertise to regulate markets
González-Páramo: macroprudential policy implementation a work in progress
European Central Bank executive board member José Manuel González-Páramo says policymakers must understand full effects of macroprudential policies
Too big to fail solution essential, says Weber
Bundesbank president Axel Weber says financial system will be unsafe unless too big to fail problem is solved
ESRB big leap for Europe: Trichet
European Central Bank president Jean-Claude Trichet says launch of European Systemic Risk Board indicates significant progress in regulatory architecture
CNB creates stability wing in bid to beef up systemic oversight
Czech National Bank separates financial stability and economic research department; says independent department move will enhance financial stability mandate
ECB: excess liquidity expansion induces financial fragility
European Central Bank study shows that over expansion of credit can lead to increased fragility in financial markets
ECB’s Tumpel-Gugerell outlines challenges for ESRB
ECB executive board member Gertrude Tumpel-Gugerell says European Systemic Risk Board must overcome limitations to measuring systemic risk
Analysts applaud passage of ESRB, fret over practical concerns
Commentators praise the concept of a continent-wide systemic risk supervisor but say politics and lack of policy clarity could thwart good intentions
Focus on banks’ incentives must continue post-crisis: Bank’s Bean
Bank of England deputy governor Charles Bean says crisis focus on bank incentives must remain; financial market problems require macroprudential instruments
Interview: Andrew Haldane
The executive director for financial stability at the Bank of England talks to Robert Pringle about lessons from the crisis, the macroprudential toolkit, links between monetary policy and financial stability, and whether the banking industry needs to be…
Westminster spells out Bank’s importance in new regulatory structure
Bank-led committee will instruct prudential regulator and consumer body on policy; Treasury asks industry players for input on broadening new body’s objectives
Price stability rightly remains sole focus of monetary policy: IMF
Fund directors say macroprudential measures, rather than monetary policy tools, should deliver financial stability; propose measures including dynamic provisioning framework
Canada’s Carney named CGFS chair
Bank of Canada governor Mark Carney to step into Federal Reserve vice-chairman Donald Kohn’s shoes and head Basel-based Committee on the Global Financial System; follows Kohn’s retirement
BIS’s Caruana warns macroprudential policies may have unintended consequences
Bank for International Settlements general manager Jaime Caruana says macroprudential policies alone do not guarantee protection from systemic risks
Cyprus's Orphanides: central banks in best position to supervise risks
Cypriot central bank governor Athanasios Orphanides says central banks are in best position to oversee macroprudential risks