This paper examines the macroeconomic and microeconomic dimensions of systemic risk. The design of practical macroprudential policies to address such risks is complex. Issues to be tackled include: (a) statistics to accurately measure currency and maturity mismatches (which usually lie at the...

Governors and senior officials representing some two dozen central banks from Africa and other regions of the world met at the BIS in May 2011 to discuss the monetary policy and financial stability issues facing Africa after the global financial crisis. This volume brings together the background...

Economic and financial integration has reshaped the monetary policy frameworks and transmission channels in the emerging market economies (EMEs) over the past two decades. Economic and financial linkages have become stronger, resulting in greater synchronization of business cycles across...

Household credit in Asia-Pacific has grown strongly over the past two decades. Managing household credit booms and their financial stability implications has become a central task for policymakers. In this article, we assess the effects of changes in interest rates and macroprudential measures...

Combining data on 1.3 million firms from 2002 to 2011 operating in 59 countries with changes in macroprudential regulations over this period, we find some evidence that macroprudential policies are associated with lower credit growth, especially for small firms with limited non-bank financing....

The great financial crisis of 2007-08 and the recession have generated active debate on the role of financial systems on the real economy. In particular, central banks have shown increased interest in how financial systems can evolve to maximise their contribution to the real economy. Many...

Global risk-off shocks can be highly destabilising for financial markets and, absent an adequate policy response, may trigger severe recessions. In Caballero and Kamber (2019), we document that the unconventional policies adopted by the main central banks were effective in containing asset price...

In the aftermath of the global financial crisis, the Central Bank of the Republic of Turkey (CBRT) designed and adopted a policy mix where reserve requirements, an asymmetric interest rate corridor and a reserve options mechanism (ROM) were used alongside the policy rate to reduce the negative...

The note discusses the main features of Russia's current macroprudential policy framework. In particular, it describes the Central Bank of the Russian Federation's legal mandate to ensure the stable functioning of the financial markets, explains the interagency coordination between Russian...

Challenges to macroprudential policy are mainly of a universal nature and encompass, in particular, difficulties in the pre-emptive identification of looming imbalances; interactions with the political cycle; asymmetry in the perception of costs and benefits of using macroprudential instruments;...