Macro-prudential policy
BoE’s Haldane sees greater role for central banks as risks shift
Central banks may have to address different episodes of financial instability as risks shift from the banking sector to other financial players, says BoE chief economist Andrew Haldane
Menon: ‘Too early’ to ease macro-prudential policies
Managing director says there are ‘some indications’ the property market is cooling down, but remains concerned by high prices and household debt
Shirai calls for mechanisms to manage policy conflict
BoJ policy board member says monetary and macro-prudential policies are not necessarily complementary; some Japanese officials view reverse repos as a macro-pru tool
IMF paper finds macro-prudential polices can help prevent liquidity traps
Researchers find that debt limits and insurance requirements can help prevent economic agents from accumulating excessive leverage and triggering liquidity traps
The reorientation of central bank policy objectives
In this sponsored feature, Peter Warburton and Joanna Davies discuss how the policy challenges for central banks have been transformed in the aftermath of the global financial crisis
Fischer keen to add financial stability to Fed mandate
Fed vice-chair Stanley Fischer praises progress with reforms in his first speech since becoming second in command; open to reforming the Financial Stability Oversight Council
ESRB publishes framework for calibrating CCBs
European Systemic Risk Board identifies the indicators EU member states should use when building, reducing and releasing their counter-cyclical capital buffers
Tarullo says Fed must ‘hone' stress test regime
Fed governor says some firms still lack ‘reliable information' about their business exposures; hints at more attention to developing tests' macro-prudential elements
BoE introduces ‘ground-breaking' macro-pru measures to prevent housing bust
Mark Carney unveils a cap on high loan-to-income mortgages and affordability test; influential MP calls it a ‘major departure' for UK financial policy
Macro-pru beats monetary policy for open-economy financial stability
IMF working paper uses open economy framework to show macro-prudential policies are more welfare-enhancing than interest rate rises in seeing off over-exuberance
Macro-prudential research builds ‘analytical foundation’ for EU policy
A European System of Central Bank’s research network reports on four years of work; Vitor Constâncio says policy-makers will still need ‘trial-and-error approaches’
Bank of England given far-reaching macro-prudential powers over housing
UK chancellor unveils ‘big new steps' that will allow BoE to cap loan-to-value and loan-to-income ratios on mortgages; Carney ‘applauds' decision
Philippines tailors stress tests to real estate exposures
Central Bank of the Philippines approves new prudential guidelines to incorporate in bank stress tests; insists they are preferable to ‘absolute limits’ on real estate exposures
Belgians call for ‘strong co-ordination’ to hold EU prudential regime together
Article in National Bank of Belgium's financial stability review evaluates the institutional structures that will influence macro-prudential policy in Europe
IMF launches global house price observatory to 'nudge' prudential policy-makers
Fund sets up website to help countries keep track of and compare housing sector developments and prompt them into ‘early action' on booms and busts
Emirates central bank monitoring property price growth
Central bank says financial system is 'resilient' but 'vulnerabilities exist' in annual financial stability report released this weekend
BoE's Sharp: new shocks around the corner 'perfectly conceivable'
Richard Sharp says UK financial system's openness means unpredictable external events can have 'profound effect' on financial stability
Ingves: Swedes should be forced to amortise mortgages
Riksbank governor slams Swedish 'culture' whereby 40% of households ‘do not amortise at all'; average debt-to-income ratio for mortgaged households is 313%
Targeting financial stability would compromise central bank independence, Lagarde says
IMF managing director Christine Lagarde says adding a financial stability objective to central bank mandates would be incompatible with their continued independence
Menon: Monetary policy can't fill ‘all the cracks'
MAS managing director says monetary policy cannot ensure financial stability alone, as vulnerabilities tend to concentrate in specific sectors
Risk of dealers exiting from market-making 'much reduced', says BoE's Cunliffe
Bank of England deputy governor for financial stability says prospective UK leverage ratio framework 'could include power to vary ratio to counter macro-prudential risks'
Canadian government wields macro-prudential power, IMF paper says
Government control over high loan-to-value mortgages has successfully taken some heat out of the Canadian housing market since the economy began to recover
Monetary and macro-prudential co-ordination works well when pulling in same direction
Monetary and macro-prudential policy co-ordination brings benefits when they are both aiming at the output gap, but not when the regulator emphasises financial stability
Tarullo addresses Dodd-Frank's impact on mid-sized banks
The Fed governor notes these lenders 'vary enormously in size' and bridge current $50bn bar for enhanced prudential supervision; suggests 'line might be better drawn' at $100bn