Macro-prudential policy
Central Bank of Ireland proposes lending restrictions
Irish central bank proposes three ‘speed limits’ on banks’ mortgage lending, as it looks to create a ‘stable and well-functioning’ market
IMF's Blanchard warns macro-prudential tools ‘may not be up to the task'
Chief economist outlines benefits of debt-financed infrastructure projects in the eurozone at opening of IMF and World Bank annual meeting
Polish paper examines impact of foreign currency loans
Foreign currency loans restrict the transmission of monetary policy to the real economy but do not have a 'significant' impact on efficacy of macro-prudential measures, paper finds
Bank of England asks for new tools to curb mortgage lending
Financial Policy Committee recommends it be equipped with controls on loan-to-value and debt-to-income ratios; Mark Carney says Help to Buy scheme does not pose ‘material risks’
NBP warns ECB-Fed mismatch may impair policy-making
Polish central bank says divergence of European and US monetary policy is likely to create problems for policy-makers elsewhere, especially in small, open economies
RBA discussing steps to cool ‘unbalanced’ housing market
Australia’s financial regulators are discussing whether ‘additional steps’ are necessary to address the disproportionate increase in credit to investors in the housing market
BIS warns of risks related to dollar-denominated corporate debt in EMs
Hyun Shin says cross-border bank lending has seen first ‘substantial increase for some time', while Claudio Borio cautions against ‘exceptionally low' volatility in financial markets
New York Fed report reviews risk-return trade-off between financial conditions and financial stability
Paper focuses on vulnerabilities affecting trade-off, including pricing of risk and leverage; discusses how macro-pru policies can counteract vulnerabilities
Higher capital requirements lead to lower lending, study by Calomiris finds
Paper published today by the Bank of England finds ‘little evidence of interaction' between monetary policy and capital requirements; studies their impact on bank lending
IMF calls on Nordics to keep housing markets in check
Article IV reports warn Norges Bank will eventually have to normalise policy rate above inflation target and call for Swedish macro-pru measures targeted at households
EMs evaluate macro-prudential tools in BIS publication
Central bankers across Asia and Europe assess their countries’ efforts to mitigate spillovers from monetary policy in advanced economies in a major BIS publication
China joins Indian calls for better taper co-ordination
People's Bank of China says advanced economy coordination is ‘reasonable and inevitable course of action', joining calls from the Reserve Bank of India for international monetary policy solidarity
Central Bank of Hungary brings in macro-prudential borrowing caps
New caps will limit payment-to-income levels especially on FX loans; central bank hopes one side-effect will be to discourage the informal economy
ECB economists design early-warning guide to trigger macro-prudential intervention
Working paper isolates key indicators to tell policy-makers when to use macro-prudential measures, and which ones to use
Riksbank's first deputy calls for macro-prudential measures that directly limit household debt
Kerstin af Jochnick suggests amortisation requirements and ‘review of tax deductions for interest paid' in Stockholm speech
IMF researchers say CCBs ‘show less promise’ than other macro-prudential tools
Working paper finds counter-cyclical capital buffers are less effective than measures aimed at banks’ assets and liabilities in reducing the rate of asset growth on their balance sheets
Robert Pringle's Viewpoint: Haldane plus Rajan = New model central bank?
Robert Pringle offers an alternative to Bank of England chief economist Andrew Haldane’s scenarios for the next 25 years of central banking
Avinash Persaud calls on regulators to address ‘system-wide' risk mismatches; slams Solvency II
Forcing long-term institutions under Solvency II to behave like short-term ones will be the biggest contributor to systemic risk since Basel II, says Avinash Persaud in Central Banking journal
New frontiers for central banking
Central banks are embracing macro-prudential policies with the same gusto as they did inflation targeting and independence in the 1990s. But they are in danger of over-relying on such approaches
The challenges for central banks
Demands are being made for central banks to consider financial stability alongside price stability, as a key component of their monetary policy. But that is nothing new for central banks
Can central bankers live up to their role as the guardians of finance?
Central bankers need to be the risk managers of the financial system to help mitigate the fallout from future crises. Those that engaged in the latest bouts of QE have not made a good start
The evolving role of the Eurosystem and its national central banks
Anne Le Lorier pinpoints the challenges Eurosystem central banks will have to address in the aftermath of the global financial crisis.
(Too) great expectations for macro-prudential?
Macro-prudential policies are a welcome response to the financial crisis, but not necessarily in their current incarnation. BIS economics head Claudio Borio highlights their limitations
Macro-prudential policies could ‘become part of the problem’, says BIS’ Borio
Weight of expectation on macro-prudential policies to address financial system stresses may be too great, says BIS economics head Claudio Borio; stress tests ‘woefully deficient’ in predicting crises