Macroprudential Policy Framework : A Practice Guide
This practice guide is primarily intended as a reference and guidance for emerging market economies in their migration to a formal macroprudential policy framework. It relies largely on the existing wisdom, knowledge, and experience and was written...
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| Format: | Publication |
| Language: | English en_US |
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Washington, DC: World Bank
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/04/19456627/macroprudential-policy-framework-practice-guide http://hdl.handle.net/10986/18152 |
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okr-10986-18152 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ARBITRAGE ASSET CLASSES ASSET PRICE ASSET PRICES ASSET QUALITY ASSETS RATIO AUDITING AUTONOMY BALANCE SHEET BANK BALANCE SHEETS BANK EXPOSURE BANK FOR INTERNATIONAL SETTLEMENTS BANK GOVERNORS BANK SUPERVISION BANKING CRISES BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BONDS BORROWING COSTS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CDS CENTRAL BANK CENTRAL BANKS CHECKS CLEARING HOUSES CLEARINGHOUSE COLLATERAL COLLECTIVE ACTION COMMERCIAL PAPERS COOPERATIVE BANKS CREDIBILITY CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT DEFAULT SWAPS CREDIT DERIVATIVES CREDIT EXPANSION CREDIT GROWTH CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT RATINGS CREDIT SPREADS CREDIT UNIONS CURRENCY CURRENCY MISMATCHES CURRENCY RISK CURRENT ACCOUNT DEFICIT DEBT DEBT SERVICE DEFAULT RISK DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSITS DERIVATIVES MARKET DEVELOPING ECONOMIES DEVELOPING ECONOMY DEVELOPMENT FINANCE ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKET ECONOMY EXCESS LIQUIDITY EXCHANGE RATE EXTERNAL DEBT FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FLOWS FINANCIAL HEALTH FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL SAVINGS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRESS FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS FISCAL DEFICIT FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURES FOREIGN DIRECT INVESTMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS GLOBAL FINANCIAL SYSTEM GOVERNMENT FINANCE GROSS DOMESTIC PRODUCT HEDGE FUNDS HOLDING IMPLICIT SUBSIDIES INCOME INDEBTEDNESS INDIVIDUAL FIRM INFLATION INFORMATION SYSTEMS INSTRUMENT INTERBANK MARKETS INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL FINANCIAL CRISES INTERNATIONAL SETTLEMENTS ISSUANCE JURISDICTIONS LAWS LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGISLATION LENDER LENDER OF LAST RESORT LEVEL OF CONFIDENCE LEVY LIQUID ASSETS LIQUIDITY LIQUIDITY RISK LOAN LONG-TERM INVESTMENTS MANDATES MARGIN REQUIREMENTS MARK-TO-MARKET MARKET BORROWING MARKET DISCIPLINE MARKET INFORMATION MARKET INFRASTRUCTURE MARKET INFRASTRUCTURES MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET RISK MATURITY MATURITY MISMATCH MATURITY MISMATCHES MATURITY TRANSFORMATION MATURITY TRANSFORMATIONS MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MIGRATION MONETARY FUND MONETARY POLICY MONETARY STABILITY MORAL HAZARD MORTGAGE MORTGAGE LOAN MORTGAGE MARKET MORTGAGES MUTUAL FUNDS NET INTEREST MARGIN NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMING LOAN NONPERFORMING LOANS NPL OFF BALANCE SHEET OFF BALANCE SHEET ITEMS OUTPUT PAYMENT SERVICES PEER REVIEW PENSION PENSION FUNDS PENSIONS POLICY RESPONSE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO PRICE VOLATILITY PROBABILITY OF DEFAULT PROFITABILITY PRUDENTIAL REGULATIONS PRUDENTIAL REQUIREMENTS PRUDENTIAL STANDARDS PUBLIC FUNDS PUBLIC POLICIES PUBLIC POLICY RATE OF RETURN REAL SECTOR REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY STRUCTURES REPAYMENT RESERVE RESERVE REQUIREMENTS RESERVES RETURN ON ASSETS RETURN ON EQUITY RISK CAPITAL RISK MANAGEMENT SAFETY NET SECURITIES SETTLEMENT SETTLEMENT SYSTEMS SHORT-TERM EXTERNAL DEBT SOLVENCY SOVEREIGN DEBT STANDARD ASSET STOCK MARKET SUPERVISORY AGENCIES SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SURCHARGES SYSTEMIC RISK TIER 1 CAPITAL TRANSPARENCY TREASURY TURNOVER VALUATION VARIABLE RATE |
| spellingShingle |
ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ARBITRAGE ASSET CLASSES ASSET PRICE ASSET PRICES ASSET QUALITY ASSETS RATIO AUDITING AUTONOMY BALANCE SHEET BANK BALANCE SHEETS BANK EXPOSURE BANK FOR INTERNATIONAL SETTLEMENTS BANK GOVERNORS BANK SUPERVISION BANKING CRISES BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BONDS BORROWING COSTS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CDS CENTRAL BANK CENTRAL BANKS CHECKS CLEARING HOUSES CLEARINGHOUSE COLLATERAL COLLECTIVE ACTION COMMERCIAL PAPERS COOPERATIVE BANKS CREDIBILITY CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT DEFAULT SWAPS CREDIT DERIVATIVES CREDIT EXPANSION CREDIT GROWTH CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT RATINGS CREDIT SPREADS CREDIT UNIONS CURRENCY CURRENCY MISMATCHES CURRENCY RISK CURRENT ACCOUNT DEFICIT DEBT DEBT SERVICE DEFAULT RISK DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSITS DERIVATIVES MARKET DEVELOPING ECONOMIES DEVELOPING ECONOMY DEVELOPMENT FINANCE ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKET ECONOMY EXCESS LIQUIDITY EXCHANGE RATE EXTERNAL DEBT FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FLOWS FINANCIAL HEALTH FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL SAVINGS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRESS FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS FISCAL DEFICIT FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURES FOREIGN DIRECT INVESTMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS GLOBAL FINANCIAL SYSTEM GOVERNMENT FINANCE GROSS DOMESTIC PRODUCT HEDGE FUNDS HOLDING IMPLICIT SUBSIDIES INCOME INDEBTEDNESS INDIVIDUAL FIRM INFLATION INFORMATION SYSTEMS INSTRUMENT INTERBANK MARKETS INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL FINANCIAL CRISES INTERNATIONAL SETTLEMENTS ISSUANCE JURISDICTIONS LAWS LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGISLATION LENDER LENDER OF LAST RESORT LEVEL OF CONFIDENCE LEVY LIQUID ASSETS LIQUIDITY LIQUIDITY RISK LOAN LONG-TERM INVESTMENTS MANDATES MARGIN REQUIREMENTS MARK-TO-MARKET MARKET BORROWING MARKET DISCIPLINE MARKET INFORMATION MARKET INFRASTRUCTURE MARKET INFRASTRUCTURES MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET RISK MATURITY MATURITY MISMATCH MATURITY MISMATCHES MATURITY TRANSFORMATION MATURITY TRANSFORMATIONS MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MIGRATION MONETARY FUND MONETARY POLICY MONETARY STABILITY MORAL HAZARD MORTGAGE MORTGAGE LOAN MORTGAGE MARKET MORTGAGES MUTUAL FUNDS NET INTEREST MARGIN NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMING LOAN NONPERFORMING LOANS NPL OFF BALANCE SHEET OFF BALANCE SHEET ITEMS OUTPUT PAYMENT SERVICES PEER REVIEW PENSION PENSION FUNDS PENSIONS POLICY RESPONSE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO PRICE VOLATILITY PROBABILITY OF DEFAULT PROFITABILITY PRUDENTIAL REGULATIONS PRUDENTIAL REQUIREMENTS PRUDENTIAL STANDARDS PUBLIC FUNDS PUBLIC POLICIES PUBLIC POLICY RATE OF RETURN REAL SECTOR REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY STRUCTURES REPAYMENT RESERVE RESERVE REQUIREMENTS RESERVES RETURN ON ASSETS RETURN ON EQUITY RISK CAPITAL RISK MANAGEMENT SAFETY NET SECURITIES SETTLEMENT SETTLEMENT SYSTEMS SHORT-TERM EXTERNAL DEBT SOLVENCY SOVEREIGN DEBT STANDARD ASSET STOCK MARKET SUPERVISORY AGENCIES SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SURCHARGES SYSTEMIC RISK TIER 1 CAPITAL TRANSPARENCY TREASURY TURNOVER VALUATION VARIABLE RATE Krishnamurti, Damodaran Lee, Yejin Carol Macroprudential Policy Framework : A Practice Guide |
| relation |
World Bank Study; |
| description |
This practice guide is primarily
intended as a reference and guidance for emerging market
economies in their migration to a formal macroprudential
policy framework. It relies largely on the existing wisdom,
knowledge, and experience and was written with the intention
of assisting policy makers (and the World Bank staff working
with these authorities) in the implementation of
macroprudential policy frameworks in jurisdictions with the
following characteristics representative of a typical
emerging market and developing economy: 1) a simple and
bank-dominated financial system where other financial sector
segments are much smaller, but growing; 2) banking
supervision function is within the central bank; 3)
financial sector regulation/supervision is not integrated;
4) uncertain availability of quality data. A macroprudential
policy framework is not a silver bullet for safeguarding
financial stability. It is also useful to highlight that a
macroprudential policy framework cannot take the place of
other public policy frameworks. While pursuing
macroprudential policy to build a more resilient financial
system, authorities should also take into consideration the
significant financial development needs that may exist in
their respective jurisdictions. This Practice Guide has been
structured in a logical sequence that mirrors
implementation. The second and third sections are laid out
to clarify and provide some context to the concept of a
macroprudential approach to supervision and discuss the
institutional framework. The fourth and fifth sections deal
with the operational aspects of macroprudential policy
framework that are timely detection of systemic risks using
early warning systems and addressing the buildup of systemic
risks with macroprudential policy instruments. |
| format |
Publications & Research :: Publication |
| author |
Krishnamurti, Damodaran Lee, Yejin Carol |
| author_facet |
Krishnamurti, Damodaran Lee, Yejin Carol |
| author_sort |
Krishnamurti, Damodaran |
| title |
Macroprudential Policy Framework : A Practice Guide |
| title_short |
Macroprudential Policy Framework : A Practice Guide |
| title_full |
Macroprudential Policy Framework : A Practice Guide |
| title_fullStr |
Macroprudential Policy Framework : A Practice Guide |
| title_full_unstemmed |
Macroprudential Policy Framework : A Practice Guide |
| title_sort |
macroprudential policy framework : a practice guide |
| publisher |
Washington, DC: World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/04/19456627/macroprudential-policy-framework-practice-guide http://hdl.handle.net/10986/18152 |
| _version_ |
1764439407540043776 |
| spelling |
okr-10986-181522021-04-23T14:03:42Z Macroprudential Policy Framework : A Practice Guide Krishnamurti, Damodaran Lee, Yejin Carol ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ARBITRAGE ASSET CLASSES ASSET PRICE ASSET PRICES ASSET QUALITY ASSETS RATIO AUDITING AUTONOMY BALANCE SHEET BANK BALANCE SHEETS BANK EXPOSURE BANK FOR INTERNATIONAL SETTLEMENTS BANK GOVERNORS BANK SUPERVISION BANKING CRISES BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BONDS BORROWING COSTS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CDS CENTRAL BANK CENTRAL BANKS CHECKS CLEARING HOUSES CLEARINGHOUSE COLLATERAL COLLECTIVE ACTION COMMERCIAL PAPERS COOPERATIVE BANKS CREDIBILITY CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT DEFAULT SWAPS CREDIT DERIVATIVES CREDIT EXPANSION CREDIT GROWTH CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT RATINGS CREDIT SPREADS CREDIT UNIONS CURRENCY CURRENCY MISMATCHES CURRENCY RISK CURRENT ACCOUNT DEFICIT DEBT DEBT SERVICE DEFAULT RISK DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSITS DERIVATIVES MARKET DEVELOPING ECONOMIES DEVELOPING ECONOMY DEVELOPMENT FINANCE ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKET ECONOMY EXCESS LIQUIDITY EXCHANGE RATE EXTERNAL DEBT FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FLOWS FINANCIAL HEALTH FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL SAVINGS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRESS FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS FISCAL DEFICIT FOREIGN CURRENCY FOREIGN CURRENCY EXPOSURES FOREIGN DIRECT INVESTMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS GLOBAL FINANCIAL SYSTEM GOVERNMENT FINANCE GROSS DOMESTIC PRODUCT HEDGE FUNDS HOLDING IMPLICIT SUBSIDIES INCOME INDEBTEDNESS INDIVIDUAL FIRM INFLATION INFORMATION SYSTEMS INSTRUMENT INTERBANK MARKETS INTERNATIONAL BANK INTERNATIONAL BANKING INTERNATIONAL FINANCIAL CRISES INTERNATIONAL SETTLEMENTS ISSUANCE JURISDICTIONS LAWS LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGISLATION LENDER LENDER OF LAST RESORT LEVEL OF CONFIDENCE LEVY LIQUID ASSETS LIQUIDITY LIQUIDITY RISK LOAN LONG-TERM INVESTMENTS MANDATES MARGIN REQUIREMENTS MARK-TO-MARKET MARKET BORROWING MARKET DISCIPLINE MARKET INFORMATION MARKET INFRASTRUCTURE MARKET INFRASTRUCTURES MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET RISK MATURITY MATURITY MISMATCH MATURITY MISMATCHES MATURITY TRANSFORMATION MATURITY TRANSFORMATIONS MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MIGRATION MONETARY FUND MONETARY POLICY MONETARY STABILITY MORAL HAZARD MORTGAGE MORTGAGE LOAN MORTGAGE MARKET MORTGAGES MUTUAL FUNDS NET INTEREST MARGIN NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMING LOAN NONPERFORMING LOANS NPL OFF BALANCE SHEET OFF BALANCE SHEET ITEMS OUTPUT PAYMENT SERVICES PEER REVIEW PENSION PENSION FUNDS PENSIONS POLICY RESPONSE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO PRICE VOLATILITY PROBABILITY OF DEFAULT PROFITABILITY PRUDENTIAL REGULATIONS PRUDENTIAL REQUIREMENTS PRUDENTIAL STANDARDS PUBLIC FUNDS PUBLIC POLICIES PUBLIC POLICY RATE OF RETURN REAL SECTOR REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY STRUCTURES REPAYMENT RESERVE RESERVE REQUIREMENTS RESERVES RETURN ON ASSETS RETURN ON EQUITY RISK CAPITAL RISK MANAGEMENT SAFETY NET SECURITIES SETTLEMENT SETTLEMENT SYSTEMS SHORT-TERM EXTERNAL DEBT SOLVENCY SOVEREIGN DEBT STANDARD ASSET STOCK MARKET SUPERVISORY AGENCIES SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SURCHARGES SYSTEMIC RISK TIER 1 CAPITAL TRANSPARENCY TREASURY TURNOVER VALUATION VARIABLE RATE This practice guide is primarily intended as a reference and guidance for emerging market economies in their migration to a formal macroprudential policy framework. It relies largely on the existing wisdom, knowledge, and experience and was written with the intention of assisting policy makers (and the World Bank staff working with these authorities) in the implementation of macroprudential policy frameworks in jurisdictions with the following characteristics representative of a typical emerging market and developing economy: 1) a simple and bank-dominated financial system where other financial sector segments are much smaller, but growing; 2) banking supervision function is within the central bank; 3) financial sector regulation/supervision is not integrated; 4) uncertain availability of quality data. A macroprudential policy framework is not a silver bullet for safeguarding financial stability. It is also useful to highlight that a macroprudential policy framework cannot take the place of other public policy frameworks. While pursuing macroprudential policy to build a more resilient financial system, authorities should also take into consideration the significant financial development needs that may exist in their respective jurisdictions. This Practice Guide has been structured in a logical sequence that mirrors implementation. The second and third sections are laid out to clarify and provide some context to the concept of a macroprudential approach to supervision and discuss the institutional framework. The fourth and fifth sections deal with the operational aspects of macroprudential policy framework that are timely detection of systemic risks using early warning systems and addressing the buildup of systemic risks with macroprudential policy instruments. 2014-05-05T16:16:29Z 2014-05-05T16:16:29Z 2014-04-29 http://documents.worldbank.org/curated/en/2014/04/19456627/macroprudential-policy-framework-practice-guide 978-1-4648-0085-6 10.1596/978-1-4648-0085-6 http://hdl.handle.net/10986/18152 English en_US World Bank Study; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication |