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.
Financial Crisis Management Framework
Financial Crisis Management Framework
While the measures discussed so far aim at avoiding a crisis, it would be naïve to think that stable and strong financial system and institutions will never encounter a crisis. A financial CMF should always be kept in readiness to control a crisis and prevent contagion. This framework should be properly documented, have roles and responsibilities clearly defined, contain a clear communication strategy and information sharing between decision-makers. The four main requirements that should be addressed immediately at the times of crisis include boosting confidence in market infrastructure, increasing liquidity, supporting viable projects with additional financing and strengthening the financial institutions which might include weeding out the weak institutions from the system.
Introduction
An episode of stress in ...
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