Macroprudential Policies : A Singapore Case Study

Macroprudential measures in Singapore have centred on the property market, as its stability is closely linked to that of the macroeconomy and the financial sector. Residential property is the single largest component in household balance sheets – it represents about half of total household assets, and housing loans account for threequarters of total household liabilities. Property-related loans also account for a considerable share of bank lending. Adverse developments in the residential property markets could consequently have serious implications for the soundness of household finances, the banking system and the broader economy. Macroprudential measures have therefore been implemented in Singapore to safeguard financial stability and encourage financial prudence. This note outlines the macroprudential framework in Singapore and discusses the scope for cross-border coordination of macroprudential policies.Full Publication: 'http://ssrn.com/abstract=3101163' Macroprudential Frameworks, Implementation and Relationship with Other Policies