Emerging nations favour different macro-prudential tools
Respondents from richer countries use counter-cyclical buffers more than emerging market peers
Central banks in advanced economies tend to favour different macro-prudential policies than their emerging market counterparts do, institutions that participated in the Financial Stability Benchmarks 2021 said.
Central banks were asked about the application of eight macro-prudential policies in their jurisdictions. No central banker from an advanced economy said there were limits in dynamic provisioning (DP) or credit growth (CG) within their jurisdiction. By contrast, at least 20% of
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