This paper analyzes the effects of several policy instruments to mitigate financial bubbles generated in the banking sector. We augment a New Keynesian macroeconomic framework by endogenizing boundedly-rational expectations on asset values of loan portfolios and allow for interbank trading. We...

High-frequency changes in interest rates around FOMC announcements are an important tool for identifying the effects of monetary policy on asset prices and the macroeconomy. However, some recent studies have questioned both the exogeneity and the relevance of these monetary policy surprises as...

The Detailed Assessments of the Observance of Standards and Codes on France reviews compliance with Basel Core Principles for effective banking supervision. The French insurance market is notable for its broad range of distribution channels, which include tied agents, insurance brokers, salaried...

The report focuses on the role played by financial market infrastructures (FMIs) in maintaining and promoting financial stability in Japan. FMIs are important tools that contribute to the Japanese financial sector, especially in the domain of domestic financial stability. The oversight and...

This paper presents an update to the Czech Republic’s Report on the Observance of Standards and Codes (ROSC) on Fiscal Transparency, Banking Supervision, Insurance Regulation, Securities Regulation, Payment Systems, and Monetary and Financial Policy Transparency. The Czech Republic continues...

This Financial System Stability Assessment on the Central African Economic and Monetary Community (CEMAC) discusses the overall assessment of stability, integration, and development issues of the financial sector. The paper reviews plans to strengthen the prudential and systemic liquidity...

This paper discusses a Detailed Assessment of the Observance of the IMF Code of Good Practices on Transparency in Monetary and Financial Policies (MFPT Code)—Banking Supervision for Italy. Banca d’Italia (BI) notes the assessment’s recognition of the very high degree of compliance of the...

This technical note on Transparency of Monetary Policy on the Republic of Belarus highlights the open process for formulating and reporting of monetary policy discussions. The National Bank of the Republic of Belarus (NBRB) displays a satisfactory degree of transparency in formulation and...

This paper presents Mongolia’s Financial System Stability Assessment, including reports on the Observance of Standards and Code. The Mongolian financial system is developing and performing well, in line with the economy as a whole, but faces a number of challenges. There are signs that the...

The European Central Bank (ECB) took many measures to combat the eurozone’s rolling financial crisis. For providing desperately scarce dollars to eurozone banks, the ECB relied on the U.S. Federal Reserve. Using a novel econometric framework, we identify financial markets’ response to the...