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The role of macroprudential policy

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(subscription required). One startling finding is that  the European industry as a whole did not cover its cost of capital even in the good times of 2006-2007. Eight large European banks took part in the initial survey; several others granted supplementary interviews. Collectively, McKinsey estimates that these two groups comprise about 40 percent of the CRE loans outstanding on balance sheets across Europe. The survey spanned 2006 and 2007, the final two years of the property boom, providing a clear picture of how the industry performs in good years. “Our research has produced two key findings. First, the industry as a ...
is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system. 1 It can be defined as "financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries". It refers to the risks imposed by interlinkages and interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure , which could potentially bankrupt or bring down the entire system or market. It is also sometimes ...
Bank of England paper suggests capital surcharges on banks during ...
A new discussion paper from the Bank of England looks at the concept of increasing capital requirements on banks during market bubbles and reducing them in times of weak economic conditions when banks are typically reluctant to lend. Excerpts from The role of macroprudential policy (free pdf download) This discussion paper examines whether it would be practical to dampen cyclical overexuberance through a regime of capital surcharges on top of prevailing microprudential capital ratios. These surcharges could be applied to headline capital requirements or at a more disaggregated level (through so-called ‘risk weights’ on ... market research, surveys and trends
BANKS mimic other banks. They expose themselves to similar risks by making the same sorts of loans. Each bank’s appetite for lending rises and falls in sync. What is safe for one institution becomes dangerous if they all do the same, which is often how financial trouble starts. The scope for nasty spillovers is increased by direct linkages. Banks lend to each other as well as to customers, so one firm’s failure can quickly cause others to fall over, too. Because of these connections, rules to ensure the soundness of each bank are not enough to keep the banking system safe. Hence the calls for ... market research, surveys and trends


Don't Forget Financial Sector Reform « iMFdirect – The IMF Blog
There is a broad consensus on at least one conclusion from the turmoil of the past few years: Fundamental changes are needed in the global financial sector. Some of these changes seem relatively clear: Risk management of many financial firms needs strengthening Compensation schemes need to be re-evaluated Capital standards need to be bolstered Regulation needs fundamental reform Supervision needs to be improved And financial institutions’ balance sheets need to be freed of the burden of impaired assets. Nonetheless, important tradeoffs will have to be addressed—and political hurdles surmounted—before significant progress can be ... industry trends, business articles and survey research
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Jan 18, 2010 ... assessments on financial companies with more than $50 billion in assets .... “ The role of macroprudential policy,” Bank of England discussion paper, ..... In this example a single large firm represents 20 percent of a ... industry trends, business articles and survey research
IMF: Jordan's economic activity is expected to pick in 2010
Following a decade of strong growth, the Jordanian economy has slowed (with output growth falling below potential), largely due to the global and regional downturn. Economic activity is expected to pick up modestly in 2010 , as growth revives in key regional trading partners, says the International Monetary Fund mission. Notwithstanding the authorities’ strong fiscal consolidation efforts, and prudent regulation and supervision of the financial sector, policies need to remain focused on guarding against fiscal and external vulnerabilities. While monetary easing in 2009–10 to stimulate domestic demand has been appropriate, ... market trends, news research and surveys resources
Message to my fellow workers: China-bashing is a bad idea
In the July 10, 2010, edition of the British magazine The Economist, there is an article about China's banks, referred to as the "Great Wall Street." The Economist is the British version of the Wall Street Journal. This article , with a little bit of attached explanation, I believe, can help my fellow workers understand why China-bashing in the labor movement is a bad idea. Any sleazy politician or Wall Street banker knows the best way to take people's minds off mistakes you have made is to focus their attention on somebody else. Problems with NAFTA and runaway corporate greed have given a lot of people ... market trends, news research and surveys resources


The role of macroprudential policy: A Discussion Paper - November 2009
Nov 19, 2009 ... The role of macroprudential policy. A Discussion Paper .... The role of macroprudential policy. A discussion paper by the Bank of England. ... technology research, surveys study and trend statistics
The Public Policy Case for a Role for the Federal Reserve in Bank ...
Jan 13, 2010 ... supervisory role, and offer considerable benefits for macroprudential supervision going forward. In addition, the complementarity between ... technology research, surveys study and trend statistics
A Macroprudential Approach to Financial Regulation
Jul 22, 2010 ... macroprudential approach in a sensible way—i.e., to translate it into a ...... Bank of England, 2009, “The Role of Macroprudential Policy: A ...
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What are the challenges in risk analytics post financial crisis ...
Your question should be front of mind for most financial institutions. My expererience over the past 15 years in the financial services industry suggests that analyst independence is at the center of the problem. The fact is that most banks and other financial institutions are run by sales professionals. Hence, these sales managers task the financial analysts to develop arguments that "sell" product. Until some level of analytical independence is formallized between the analytical staffs and management, it is likely that "financial failures" will recur again and again. What is needed is some form of independent auditing for ...
The three levels of civilisation - by Michio Kaku. Does it also ...
Type 2 brand, Stellar: the brand has exhausted its realm of control and instead now relies on the mother (corporate?) brand Type 3, Galactic: a brand built on its consumer base, and this is where it draws its power from. Any comment appreciated, thank you. Hi Stuart, now that's interesting! I list the brand levels in ascending order of vitality, or at least i thought I did:-) I understand this is not yet the world order today. But you are right, control > (collective) energy, at least for the duration of the control tool, method or mechanism. thanks! After-thought, Type 2 brand level precedes type 3 in most cases, insofar ...