Download or read book Staff Guidance Note on Macroprudential Policy Detailed Guidance on Instruments written by International Monetary Fund and published by International Monetary Fund. This book was released on 2014-07-11 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note covers considerations that can guide the staff’s policy advice on the use of a broad range of macroprudential tools. It discusses the transmission and likely effectiveness of these tools in mitigating systemic risks and the set of indicators that can be used in surveillance to assess the need for changes in macroprudential policy settings. This note is a supplement to the Staff Guidance Note on Macroprudential Policy.
Download or read book Staff Guidance Note on Macroprudential Policy written by International Monetary Fund and published by International Monetary Fund. This book was released on 2014-06-11 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note provides guidance to facilitate the staff’s advice on macroprudential policy in Fund surveillance. It elaborates on the principles set out in the “Key Aspects of Macroprudential Policy,” taking into account the work of international standard setters as well as the evolving country experience with macroprudential policy. The main note is accompanied by supplements offering Detailed Guidance on Instruments and Considerations for Low Income Countries
Download or read book Key Aspects of Macroprudential Policy Background Paper written by International Monetary Fund. Fiscal Affairs Dept. and published by International Monetary Fund. This book was released on 2013-10-06 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: The countercyclical capital buffer (CCB) was proposed by the Basel committee to increase the resilience of the banking sector to negative shocks. The interactions between banking sector losses and the real economy highlight the importance of building a capital buffer in periods when systemic risks are rising. Basel III introduces a framework for a time-varying capital buffer on top of the minimum capital requirement and another time-invariant buffer (the conservation buffer). The CCB aims to make banks more resilient against imbalances in credit markets and thereby enhance medium-term prospects of the economy—in good times when system-wide risks are growing, the regulators could impose the CCB which would help the banks to withstand losses in bad times.
Download or read book Policy Coordination Instrument Updated Operational Guidance Note written by International Monetary Fund. Strategy, Policy, & Review Department and published by International Monetary Fund. This book was released on 2024-04-25 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note provides updated general guidance on the use of the Policy Coordination Instrument (PCI). The PCI is a non-financing instrument designed for countries that, at the time of the PCI request, are seeking to unlock financing from sources other than the Fund and/or to demonstrate a commitment to a reform agenda. Since its establishment in 2017 as part of the Fund’s work on the Global Financial Safety Net, the PCI has been used by several members. These experiences helped establish and refine best practices, which are reflected in this updated operational guidance note together with changes to the PCI policy approved by the Executive Board on October 4, 2023. The note covers operational issues in a broad range of areas such as purpose, objectives, eligibility, modalities, applicability of UFR-related and other relevant policies, design of a PCI-supported program, conditionality framework, review schedule , and a comparison with other lending instruments. The note is an aid to the implementation of the PCI policy and its underlying principles. If there is any instance in which a provision of the guidance note or its implementation conflicts with the policy approved by the Board, the PCI policy shall prevail.
Download or read book Guidance Note for Surveillance Under Article IV Consultations written by International Monetary Fund and published by International Monetary Fund. This book was released on 2015-03-20 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note provides country teams with guidance on bilateral and multilateral surveillance in the context of Article IV consultations. It covers the following issues: Focus on stability. Stability is the organizing principle of surveillance. Article IV consultations should focus on the conduct of economic and financial policies pursued by members to promote present and prospective domestic and balance of payments stability, as well as global economic and financial stability. For the latter, Article IV consultations should discuss spillovers from members’ economic and financial policies that may significantly affect global stability, including alternative policy options that would minimize their adverse impact. Operational guidance. The note provides detailed guidance, suggestions and references in areas covered in surveillance including risks and spillovers, fiscal policy, macrofinancial and monetary policy, BOP stability, structural policies and data issues. Communication and Engagement. Effective two-way communication is key to surveillance, including with the authorities (to help staff’s advice get traction), the Executive Board (to support effective peer review), and the public and other stakeholders (to gain support for necessary policy adjustments). Surveillance messages need to be clear, concise, and focused. The Fund needs to be evenhanded, in line with the principle of uniformity of treatment, for surveillance to command the confidence of the membership. Process and formal requirements. A number of procedures, rules, and requirements are summarized in this note.
Download or read book Macroprudential Policy An Organizing Framework Background Paper written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2011-03-14 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: MCM conducted a survey in December 2010 to take stock of international experiences with financial stability and the evolving macroprudential policy framework. The survey was designed to seek information in three broad areas: the institutional setup for macroprudential policy, the analytical approach to systemic risk monitoring, and the macroprudential policy toolkit. The survey was sent to 63 countries and the European Central Bank (ECB), including all countries in the G-20 and those subject to mandatory Financial Sector Assessment Programs (FSAPs). The target list is designed to cover a broad range of jurisdictions in all regions, but more weight is given to economies that are systemically important (see Annex for details). The response rate is 80 percent. This note provides a summary of the survey’s main findings.
Download or read book Staff Guidance Note for the Conduct of Ex Post Peer Reviewed Assessments of Members with Longer Term Program Engagement written by International Monetary Fund. Strategy, Policy, & Review Department and published by International Monetary Fund. This book was released on 2016-11-08 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note updates guidance on key operational aspects of the policy on Longer-Term Program Engagement (LTPE). The updated guidance reflects operational changes following the Board’s decision on April 30, 2015 to replace Ex Post Assessments (EPAs) for members with LTPEs with succinct ex post peer reviewed assessments (PRAs)1 to reflect on the lessons from the past for the design of successor arrangements or usage of the Policy Support Instrument (PSI).
Download or read book Macroprudential Policies and House Prices in Europe written by Mr.Marco Arena and published by International Monetary Fund. This book was released on 2020-02-20 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macroprudential policy in Europe aligns with the objective of limiting systemic risk, namely the risk of widespread disruption to the provision of financial services that is caused by an impairment of all or parts of the financial system and that can cause serious negative consequences for the real economy.
Download or read book Staff Guidance Note on the Use of Fund Resources for Budget Support written by International Monetary Fund. Legal Dept. and published by International Monetary Fund. This book was released on 2010-04-15 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper proposes that the Fund establish an administered account and a subaccount under the Framework Instrument for Selected Fund Activities (the “SFA”), to enhance the new external financing architecture for capacity building and related Fund activities. The specific accounts proposed to be established are: (1) an administered account for interim holdings of voluntary contributions for Fund activities, that would primarily accommodate contributions from donors for Fund activities that are planned but not yet fully developed (“The Interim Holding Administered Account,” hereinafter, the “Holding Account”); and (2) a Subaccount for the administration of selected smaller-scale capacity building and related activities (the “Catch-All Subaccount”) under the SFA Instrument, which would facilitate the administration of external funds for smaller, one-off projects.
Download or read book Macroprudential Policy Spillovers written by Mr.Heedon Kang and published by International Monetary Fund. This book was released on 2017-07-24 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes cross-border macrofinancial spillovers from a variety of macroprudential policy measures, using a range of quantitative methods. Event study and panel regression analyses find that liquidity and sectoral macroprudential policy measures often affect cross-border bank credit, whereas capital measures do not. This empirical evidence is stronger for tightening than for loosening measures, is distributed across credit leakage and reallocation effects, and is generally regionally concentrated. Consistently, structural model based simulation analysis indicates that output and bank credit spillovers from sectoral macroprudential policy shocks are generally small worldwide, but are regionally concentrated and economically significant for countries connected by strong trade or financial linkages. This simulation analysis also indicates that countercyclical capital buffer adjustments have the potential to generate sizeable regional spillovers.
Download or read book Macroprudential Policies to Enhance Financial Stability in the Caucasus and Central Asia written by Padamja Khandelwal and published by International Monetary Fund. This book was released on 2022-03-10 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Limited economic diversification has made the economies of the Caucasus and Central Asia particularly vulnerable to external shocks. The economies in the region are heavily reliant on oil and mining exports as well as remittances. In some countries, tourism and capital flows also play a prominent role in aggregate economic activity.
Download or read book Macroprudential and Microprudential Policies written by Jacek Osinski and published by International Monetary Fund. This book was released on 2013-06-21 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Effective arrangements for micro and macroprudential policies to further overall financial stability are strongly desirable for all countries, emerging or advanced. Both policies complement each other, but there can also be potential areas of overlap and conflict, which can complicate this cooperation. Organizing their very close interactions can help contain these potential tensions. This note clarifies the essential features of macroprudential and microprudential policies and their interactions, and delineates their borderline. It proposes mechanisms for aligning both policies in the pursuit of financial stability by identifying those elements that are desirable for effective cooperation between them. The note provides general guidance. Actual arrangements will need take into account country-specific circumstances, reflecting the fact that that there is no “one size fits all.”
Download or read book Saudi Arabia written by Mr.Ahmed I Al-Darwish and published by International Monetary Fund. This book was released on 2015-03-18 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: Saudi Arabia: Tackling Emerging Economic Challenges to Sustain Strong Growth
Download or read book Macroprudential Policy Effects written by Nina Biljanovska and published by International Monetary Fund. This book was released on 2023-03-31 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global financial crisis (GFC) underscored the need for additional policy tools to safeguard financial stability and ultimately macroeconomic stability. Systemic financial vulnerabilities had developed under a seemingly tranquil macroeconomic surface of low inflation and small output gaps. This challenged the precrisis view that achieving these traditional policy targets was a sufficient condition for macroeconomic stability. Thus, new tools had to be deployed to target specific financial vulnerabilities and to build buffers to cushion adverse aggregate shocks, while allowing traditional policy levers, including monetary and microprudential policies to focus on their traditional roles. Macroprudential policy measures emerged as the solution to this gap. Some of these measures had been used before the GFC (mostly in emerging markets). But it was only after the crisis that they were more widely adopted, and the toolkit expanded. This spurred a growing body of empirical research on the effects and potential shortfalls of these measures, with a further deepening of this knowledge gaining importance as policymakers confront increased financial stability risks in the post-pandemic world. Recognizing that there still is much to learn, this paper takes stock of our expanding understanding about the effects (and side effects) of macroprudential measures by focusing on these questions: What have we learned about the effects of macroprudential policy in containing the buildup of vulnerabilities? What do we know about the effects on economic activity and resilience? How do policy effects vary with conditions and over time? How important are leakages and circumvention? How do the effects on credit depend on other policies?
Download or read book Effects of Macroprudential Policy Evidence from Over 6 000 Estimates written by Juliana Dutra Araujo and published by International Monetary Fund. This book was released on 2020-05-22 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper builds a novel database on the effects of macroprudential policy drawing from 58 empirical studies, comprising over 6,000 results on a wide range of instruments and outcome variables. It encompasses information on statistical significance, standardized magnitudes, and other characteristics of the estimates. Using meta-analysis techniques, the paper estimates average effects to find i) statistically significant effects on credit, but with considerable heterogeneity across instruments; ii) weaker and more imprecise effects on house prices; iii) quantitatively stronger effects in emerging markets and among studies using micro-level data; and iii) statistically significant evidence of leakages and spillovers. Other findings include relatively stronger impacts for tightening than loosening actions and negative effects on economic activity in the near term.
Download or read book Morocco written by International Monetary Fund. Independent Evaluation Office and published by International Monetary Fund. This book was released on 2016-11-07 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Technical Note discusses the findings and recommendations made in the Financial Sector Assessment Program for Morocco in the area of macroprudential policy, which can play an important role in mitigating financial stability risks in Morocco. The institutional framework is sound, but could be further strengthened. The current institutional setup comprising the Systemic Risk Surveillance and Coordination Committee provides a good framework, but remaining gaps could undermine its ability and willingness to act. Bank Al-Maghrib has recently taken important steps to advance financial stability analysis and develop a macroprudential policy framework. A risk mapping framework is now in place, a Financial Stability Report is now produced, and stress testing has been fine-tuned.
Download or read book Group of Twenty Measures Which are Both Macroprudential and Capital Flow Management Measures written by International Monetary Fund. Asia and Pacific Dept and published by International Monetary Fund. This book was released on 2015-10-04 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global financial crisis underscored the costs of systemic instability at both the national and global levels and highlighted the importance of dedicated macroprudential and capital flow management policies. The IMF has been assisting its members with policy advice as well as developing and making operational their policy frameworks. Multilateral aspects of both policies need to be fully considered, including the interaction with other domestic and international legal frameworks. To the extent that capital flows are the source of systemic financial sector risks, the tools used to address those risks can be seen as both capital flow management measures (CFMs) and macroprudential measures (MPMs).
