Dealing with the Challenges of Macro Financial Linkages in Emerging Markets
The 2008 financial crisis has highlighted the challenges associated with global financial integration and emphasized the importance of macro financial linkages. In the financial sector, attention is being directed toward macro prudential regulations that are geared toward the stability of the financ...
| Main Authors: | , |
|---|---|
| Format: | Publication |
| Language: | en_US |
| Published: |
Washington, DC: World Bank
2013
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10986/16202 |
| id |
okr-10986-16202 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
affiliate arbitrage Asset Class asset classes asset holdings Asset Price asset prices asset sales asset value asset-backed securities bad debt Balance Sheet balance sheets bank assets bank balance sheets Bank Branches Bank Equity Bank for International Settlements bank holding bank holding companies Bank Indonesia Bank Lending Bank Loans Bank of England Bank of Japan Bank of Korea bank portfolios banking assets banking regulation Banking Sector banking supervision banking system banking systems Bankruptcy Banks basis points bond bond credit rating boom-bust cycles Borrower business cycle Business Cycles Capital Adequacy Capital Flow Capital Flows capital gains Capital Inflow Capital Inflows Capital Markets capital requirement Capital Requirements CDs Central Banking central banks certificates of deposit collateral Commercial Banks commercial paper Consumer Loans Corporate Debt Corporate Governance Country Risk Credit Default Credit Default Swap credit growth Credit Market credit unions creditor creditors Currency Currency Crisis Debentures Debt debt management debt obligation debt overhang debt restructuring Debts Deposit depositors Deposits Derivatives developing countries Development Bank domestic credit Domestic Currency domestic interest rate Economics emerging economies Emerging Market emerging market economies Emerging Markets employment Equilibrium models Equity Financing equity funds Escrow European Central Bank Exchange Commission Exchange Rate externalities financial assets Financial Capital Financial Crises Financial Crisis Financial Development Financial Distress financial flows Financial Instability Financial Institution financial institutions Financial Integration financial market financial markets Financial Regulation Financial Services financial stability financial stress Financial Studies Financial System financial systems Fiscal Policy Foreign Assets Foreign Bank Foreign Banks foreign currency Foreign Debt foreign direct investment Foreign Exchange Foreign Exchange Transactions Foreign Inflows global economy Global Finance gross domestic product hedge funds holding home equity household wealth Housing Housing Prices income growth Inflation information disclosure insurance interbank markets Interest Rates International Bank International Finance International Financial Contagion international markets investment banks investment vehicles investor bases investor confidence line of credit Liquidity Liquidity Ratio loan Loanable Funds local lenders macroeconomic fluctuation Macroeconomic Policies macroeconomic policy macroeconomic stability macroeconomics Market discipline market failures market prices maturities Maturity Maturity Date maturity transformation Monetary Fund monetary policies Monetary Policy money market money-market Mortgage Mortgage Finance Mortgage Loans mortgage-backed security National Security negative shock nonbank financial institutions nonperforming loan NPL Output Losses payment system penalties Policy Responses Portfolio portfolio choice Portfolio Management present value Price Changes price stability Private Capital Private Capital Inflow Private Capital Inflows Private Equity probability of default profitability Prudential Regulation Prudential Regulations real sector regulatory forbearance Reserve reserve requirements return return on equity risk taking savings savings banks Securities sovereign ratings subnational finance subsidiaries subsidiary surcharges Systemic Risk Tax time deposits transparency Type of Investor value of assets withdrawal withdrawal of funds |
| spellingShingle |
affiliate arbitrage Asset Class asset classes asset holdings Asset Price asset prices asset sales asset value asset-backed securities bad debt Balance Sheet balance sheets bank assets bank balance sheets Bank Branches Bank Equity Bank for International Settlements bank holding bank holding companies Bank Indonesia Bank Lending Bank Loans Bank of England Bank of Japan Bank of Korea bank portfolios banking assets banking regulation Banking Sector banking supervision banking system banking systems Bankruptcy Banks basis points bond bond credit rating boom-bust cycles Borrower business cycle Business Cycles Capital Adequacy Capital Flow Capital Flows capital gains Capital Inflow Capital Inflows Capital Markets capital requirement Capital Requirements CDs Central Banking central banks certificates of deposit collateral Commercial Banks commercial paper Consumer Loans Corporate Debt Corporate Governance Country Risk Credit Default Credit Default Swap credit growth Credit Market credit unions creditor creditors Currency Currency Crisis Debentures Debt debt management debt obligation debt overhang debt restructuring Debts Deposit depositors Deposits Derivatives developing countries Development Bank domestic credit Domestic Currency domestic interest rate Economics emerging economies Emerging Market emerging market economies Emerging Markets employment Equilibrium models Equity Financing equity funds Escrow European Central Bank Exchange Commission Exchange Rate externalities financial assets Financial Capital Financial Crises Financial Crisis Financial Development Financial Distress financial flows Financial Instability Financial Institution financial institutions Financial Integration financial market financial markets Financial Regulation Financial Services financial stability financial stress Financial Studies Financial System financial systems Fiscal Policy Foreign Assets Foreign Bank Foreign Banks foreign currency Foreign Debt foreign direct investment Foreign Exchange Foreign Exchange Transactions Foreign Inflows global economy Global Finance gross domestic product hedge funds holding home equity household wealth Housing Housing Prices income growth Inflation information disclosure insurance interbank markets Interest Rates International Bank International Finance International Financial Contagion international markets investment banks investment vehicles investor bases investor confidence line of credit Liquidity Liquidity Ratio loan Loanable Funds local lenders macroeconomic fluctuation Macroeconomic Policies macroeconomic policy macroeconomic stability macroeconomics Market discipline market failures market prices maturities Maturity Maturity Date maturity transformation Monetary Fund monetary policies Monetary Policy money market money-market Mortgage Mortgage Finance Mortgage Loans mortgage-backed security National Security negative shock nonbank financial institutions nonperforming loan NPL Output Losses payment system penalties Policy Responses Portfolio portfolio choice Portfolio Management present value Price Changes price stability Private Capital Private Capital Inflow Private Capital Inflows Private Equity probability of default profitability Prudential Regulation Prudential Regulations real sector regulatory forbearance Reserve reserve requirements return return on equity risk taking savings savings banks Securities sovereign ratings subnational finance subsidiaries subsidiary surcharges Systemic Risk Tax time deposits transparency Type of Investor value of assets withdrawal withdrawal of funds Canuto, Otaviano Ghosh, Swati R. Dealing with the Challenges of Macro Financial Linkages in Emerging Markets |
| relation |
World Bank Study; |
| description |
The 2008 financial crisis has highlighted the challenges associated with global financial integration and emphasized the importance of macro financial linkages. In the financial sector, attention is being directed toward macro prudential regulations that are geared toward the stability of the financial system as a whole. The Third Basel Accord (Basel III) aims to dampen the pro-cyclicality of the financial sector and to reduce cross sectional systemic risks partly by introducing measures to address liquidity and issues of banks being too big to fail. In the macro arena, the facts that price stability was not sufficient to guarantee macroeconomic stability and that financial imbalances developed despite low inflation and small output gaps have highlighted the need for additional tools (macro prudential policies) to complement monetary policy in countercyclical management. Emerging markets face different conditions and have key structural features that can have a bearing on the relevance and efficacy of the measures. The chapters in this volume discuss the challenges of dealing with macro financial linkages and explore the policy toolkit available for dealing with systemic risks with particular reference to emerging markets. This report is organized as follows: chapter one is adapting macro prudential approaches to emerging and developing economies; chapter two is adapting micro prudential regulation for emerging markets; chapter three presents capital flow volatility and systemic risk in emerging markets: the policy toolkit; chapter four presents monetary policy and macro prudential regulation: whither emerging markets; chapter five deals with macro prudential policies to mitigate financial vulnerabilities in emerging markets; chapter six presents sailing through the global financial storm; and chapter seven presents operation of macro prudential policy measures. |
| author2 |
Canuto, Otaviano |
| author_facet |
Canuto, Otaviano Canuto, Otaviano Ghosh, Swati R. |
| format |
Publications & Research :: Publication |
| author |
Canuto, Otaviano Ghosh, Swati R. |
| author_sort |
Canuto, Otaviano |
| title |
Dealing with the Challenges of Macro Financial Linkages in Emerging Markets |
| title_short |
Dealing with the Challenges of Macro Financial Linkages in Emerging Markets |
| title_full |
Dealing with the Challenges of Macro Financial Linkages in Emerging Markets |
| title_fullStr |
Dealing with the Challenges of Macro Financial Linkages in Emerging Markets |
| title_full_unstemmed |
Dealing with the Challenges of Macro Financial Linkages in Emerging Markets |
| title_sort |
dealing with the challenges of macro financial linkages in emerging markets |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://hdl.handle.net/10986/16202 |
| _version_ |
1764432487780450304 |
| spelling |
okr-10986-162022021-04-23T14:03:27Z Dealing with the Challenges of Macro Financial Linkages in Emerging Markets Canuto, Otaviano Ghosh, Swati R. Canuto, Otaviano Ghosh, Swati R. affiliate arbitrage Asset Class asset classes asset holdings Asset Price asset prices asset sales asset value asset-backed securities bad debt Balance Sheet balance sheets bank assets bank balance sheets Bank Branches Bank Equity Bank for International Settlements bank holding bank holding companies Bank Indonesia Bank Lending Bank Loans Bank of England Bank of Japan Bank of Korea bank portfolios banking assets banking regulation Banking Sector banking supervision banking system banking systems Bankruptcy Banks basis points bond bond credit rating boom-bust cycles Borrower business cycle Business Cycles Capital Adequacy Capital Flow Capital Flows capital gains Capital Inflow Capital Inflows Capital Markets capital requirement Capital Requirements CDs Central Banking central banks certificates of deposit collateral Commercial Banks commercial paper Consumer Loans Corporate Debt Corporate Governance Country Risk Credit Default Credit Default Swap credit growth Credit Market credit unions creditor creditors Currency Currency Crisis Debentures Debt debt management debt obligation debt overhang debt restructuring Debts Deposit depositors Deposits Derivatives developing countries Development Bank domestic credit Domestic Currency domestic interest rate Economics emerging economies Emerging Market emerging market economies Emerging Markets employment Equilibrium models Equity Financing equity funds Escrow European Central Bank Exchange Commission Exchange Rate externalities financial assets Financial Capital Financial Crises Financial Crisis Financial Development Financial Distress financial flows Financial Instability Financial Institution financial institutions Financial Integration financial market financial markets Financial Regulation Financial Services financial stability financial stress Financial Studies Financial System financial systems Fiscal Policy Foreign Assets Foreign Bank Foreign Banks foreign currency Foreign Debt foreign direct investment Foreign Exchange Foreign Exchange Transactions Foreign Inflows global economy Global Finance gross domestic product hedge funds holding home equity household wealth Housing Housing Prices income growth Inflation information disclosure insurance interbank markets Interest Rates International Bank International Finance International Financial Contagion international markets investment banks investment vehicles investor bases investor confidence line of credit Liquidity Liquidity Ratio loan Loanable Funds local lenders macroeconomic fluctuation Macroeconomic Policies macroeconomic policy macroeconomic stability macroeconomics Market discipline market failures market prices maturities Maturity Maturity Date maturity transformation Monetary Fund monetary policies Monetary Policy money market money-market Mortgage Mortgage Finance Mortgage Loans mortgage-backed security National Security negative shock nonbank financial institutions nonperforming loan NPL Output Losses payment system penalties Policy Responses Portfolio portfolio choice Portfolio Management present value Price Changes price stability Private Capital Private Capital Inflow Private Capital Inflows Private Equity probability of default profitability Prudential Regulation Prudential Regulations real sector regulatory forbearance Reserve reserve requirements return return on equity risk taking savings savings banks Securities sovereign ratings subnational finance subsidiaries subsidiary surcharges Systemic Risk Tax time deposits transparency Type of Investor value of assets withdrawal withdrawal of funds The 2008 financial crisis has highlighted the challenges associated with global financial integration and emphasized the importance of macro financial linkages. In the financial sector, attention is being directed toward macro prudential regulations that are geared toward the stability of the financial system as a whole. The Third Basel Accord (Basel III) aims to dampen the pro-cyclicality of the financial sector and to reduce cross sectional systemic risks partly by introducing measures to address liquidity and issues of banks being too big to fail. In the macro arena, the facts that price stability was not sufficient to guarantee macroeconomic stability and that financial imbalances developed despite low inflation and small output gaps have highlighted the need for additional tools (macro prudential policies) to complement monetary policy in countercyclical management. Emerging markets face different conditions and have key structural features that can have a bearing on the relevance and efficacy of the measures. The chapters in this volume discuss the challenges of dealing with macro financial linkages and explore the policy toolkit available for dealing with systemic risks with particular reference to emerging markets. This report is organized as follows: chapter one is adapting macro prudential approaches to emerging and developing economies; chapter two is adapting micro prudential regulation for emerging markets; chapter three presents capital flow volatility and systemic risk in emerging markets: the policy toolkit; chapter four presents monetary policy and macro prudential regulation: whither emerging markets; chapter five deals with macro prudential policies to mitigate financial vulnerabilities in emerging markets; chapter six presents sailing through the global financial storm; and chapter seven presents operation of macro prudential policy measures. 2013-10-25T21:16:53Z 2013-10-25T21:16:53Z 2013-10-11 978-1-4648-0002-3 10.1596/978-1-4648-0002-3 http://hdl.handle.net/10986/16202 en_US World Bank Study; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication |