Macro-prudential policy
Croatian governor warns ECB spillovers are raising real estate prices
IMF should advise less separation between macro-prudential and monetary tools, Boris Vujčić says
IMF: loose monetary policy is fostering greater risk-taking
A crisis half as strong as in 2008 could send “corporate debt at risk” to $19 trillion, says the fund
Loan-to-value analysis may be incomplete as macro-pru tool – research
Loan to purchase price, and loan service to income may be more robust analytical alternatives
RBA paper looks at responses to liquidity crises
Penalty rates to contain risk-taking are more effective on long-term loans, study finds
IMF chief sends strong warning on trade in first speech
US-China trade war could cost global economy the GDP equivalent of Switzerland, Kristalina Georgieva warns
Some financial market fragmentation helps stability – BIS paper
Different types of market fragmentation have different trade-offs, researcher says
Protracted low rates demand solid macro-prudential frameworks – Claudia Buch
Bundesbank vice-president says nature of monetary union demands strict surveillance
Mortgage caps can be higher for insured borrowers – DNB paper
Loan-level data from Netherlands shows insurance cuts risk of non-performance, say researchers
Law could help central banks fight the next recession
Brookings panel discusses using countercyclical regulations to boost spending at the ZLB
Macro-pru is no panacea
Many central banks need better macro-prudential policy frameworks and communication at a time of rising political interference
Asset bubbles play role in macro-prudential policy – IMF research
Their size may determine optimal tax levels to address credit imbalances
AI can help predict consumer defaults – NBER paper
Researchers say “deep learning” could be useful in designing macro-prudential policies
Macro-prudential policy needs range of tools – Bundesbank paper
Model assesses effectiveness of capital buffers, LTV ratios and sectoral risk-weighting
IMF’s Adrian on the big tech threat and why a ‘non-system’ works
The IMF’s financial counsellor speaks about risks from big tech’s move into fintech, the fund’s efforts to craft well-targeted policy guidance and why the current international monetary ‘non-system’ works
Macro-prudential analysis is not fit for task – leading economists
Carney and Honohan warn of fund failures and Hélène Rey calls for better risk indicators
ECB paper presents new approach to modelling LTV caps
Agent-based model’s results show “subprime” segment to eurozone housing markets – researchers
Bulgaria a case study in effective prudential policy – BIS’s Carstens
Country was early adopter of macro-prudential policy, which helped manage capital flows, Carstens says
Fed weighs reforms to stress tests
Powell says tests must evolve; Quarles and Fed watchers present potential improvements
BIS papers weigh up ongoing risks to global stability
Papers from 2018 AGM include contributions from Forbes, Tucker, Gourinchas and Rey
RBNZ accepts criticism on supervision of CBL Insurance
The insurer was placed into full liquidation in November 2018
Russian central bank tries to cut consumer lending
Bank of Russia puts limits on “payday loans” and expresses concern over growth in unsecured loans
Switzerland should tighten macropudential policies – IMF directors
Authorities should strengthen financial regulator and address real estate risks, IMF chiefs say
CNB raises countercyclical buffers as risks build
The central bank stress-tests not only the financial sector but also households and the government
RBNZ review lends support to loan-to-value limits
Macro-prudential tool has been helpful in promoting financial stability, study finds