There is increasing recognition that prior to the global financial crisis financial regulation had lacked a macroprudential perspective. There has since been a strong effort to make a new macroprudential orientation operational, including through the establishment of new macroprudential...

This article explores the interactions between monetary policy and macroprudential policy. The starting point is that monetary policy and macroprudential policy pursue different primary objectives – price (and output) stability for monetary policy, and financial stability for macroprudential...

Many episodes of financial instability and crises have been associated with housing market booms followed by busts. Reinhart and Rogoff (2009) show that the six major historical episodes of banking crises in advanced economies since the mid-1970s were all associated with a housing bust. They...

A number of countries are reviewing their institutional arrangements for financial stability to support the development of a macroprudential policy function. In some cases, this involves a rethink of the appropriate institutional boundaries between central banks and financial regulatory...

The global financial crisis has demonstrated weaknesses in resolution regimes for financial institutions around the globe, including in the European Union (EU). This paper considers the principles underlying resolution regimes for financial institutions, and draws out how a well-designed...

This paper assesses empirically the effect of disclosure on bank stability. In doing so it offers a new approach for assessing the marginal effect of structural factors on the likelihood of crises that involves panel-data techniques applied to bank-level data. Our dataset covers more than 500...

This paper sets out general principles for the design of financial stability frameworks, starting from an analysis of the objectives and tools of financial regulation. The paper then offers a comprehensive analysis of the costs and benefits of the two main models that have emerged for modern...

We assess the extent to which loan losses affect banks' provision of credit to companies and households and examine how feedback from losses to a reduction in credit is affected by the monetary policy stance. Using a unique cross-country dataset of more than 600 banks from 32 countries, we find...

There is a consensus among academics and policymakers that the excess savings built up by households during the past couple of years are specific to the pandemic. Based on data from the past half century for the US, this article shows that savings generally increase during recessions; the...