Macro-prudential View of Financial Stability
The paper points out the key features of "macro prudential" new framework, accepted by all relevant international institutions, in an effort to mitigate the externalities that can lead to vulnerability of the financial system and trigger a systemic risk. The emergence of the term dates back to the seventies, which over time have been almost forgotten, that was resurrected again in the second half of 2008, after a major global economic crisis. There is no single universal precise definition of "macro prudential", although most definitions contain several common characteristics. I focus on systematic risk, defines the key objective "macro prudential" or the regulation and supervision of the financial system as a whole rather than individual institutions. To limit the risk of global financial shocks, suggest different macro prudential indicators and instruments for assessing the health of the financial system and its vulnerability to shocks. The regulation and supervision of the financial system used macro prudential tools that are designed to enable efficient control policies, with particular focus on improving the resilience of the financial system impact of systematic risk. Macro prudential analysis focuses on factors that may threaten the stability of the financial system and the interrelationship between macroeconomic and financial stability. Macro-prudential application is based on rules or discretion, the entire system or individual financial institution, national or global level.
Year of publication: |
2012
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Authors: | Momirovic, Dragan |
Published in: |
Economic Analysis. - Institut Ekonomskih Nauka, ISSN 1821-2573. - Vol. 45.2012, 1-2, p. 45-58
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Publisher: |
Institut Ekonomskih Nauka |
Subject: | Macro-prudential | macro-prudential instruments | macro prudential indicators | macro prudential tools | macro-prudential analysis |
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