Summary
Contents
Subject index
The Global Financial Crisis is undoubtedly the most severe financial crisis the world witnessed since the Great Depression of 1929. The crisis has been analysed by a number of experts offering distinct narratives and counter-narratives. Systemic Risk and Macroprudential Regulations examines causes and consequences of the global financial crisis and proposes a regulatory reforms policy macroprudential regulations. The book emphasizes ‘systemic risk’ as the new-found villain of the financial space and narrates how such risk can be addressed through macroprudential tools. It, thus, offers a possible solution to avoid financial crises in future and facilitates building a safer financial system globally. The book also examines major crisis management frameworks, stress testing, relevant regulatory and supervisory development, and early warning mechanism with detailed cross-country analysis.
Tools for Macroprudential Policy
Tools for Macroprudential Policy
The various tools for macroprudential regulations that can be adopted by the policymaking institutions need to be categorized based on their utility and the identification of timing of imposing them so that in time of need there should be a clear understanding of what needs to be done. The macroprudential framework should aim at a fine balance between rules and discretion, nature of the institutions and should, among other early warning signals, include crisis management mechanism (CMM), resolution and recovery planning.
Introduction
Given the objectives of macroprudential policy, that is, reducing systemic risk, both over time and across institutions and markets, macroprudential instruments are chosen (from existing prudential and macroeconomic tools) and designed afresh to address both these dimensions ...
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