2/2 In a world of overlapping disruptions—from energy to liquidity to currency—static stress tests risk missing where the real fragility is building.
Read 𝐀𝐧𝐮𝐩𝐚𝐦 𝐒𝐨𝐧𝐚𝐥’s column for BasisPoint👇
#SystemicRisk #RiskManagement #MacroPrudential #PolicyEvolution
Nature🦎loss = financial risk #SUSREG2025
Our solution:
🟢 Strengthen #nature risk supervision
🟢 Adjust #capital rules for environmentally harmful assets
🟢 Reinforce disclosures and #transition plans
🟢 Activate #macroprudential tools
wwf.panda.org?15447466/SUS...
@centralbanking.bsky.social
4/7:
Solution 2: Macroprudential Strength. It's time to normalise permanent, strict macroprudential tools. Think higher loan-to-value (LVR) and debt-to-income (DTI) limits, not as emergency brakes, but as permanent guardrails to prevent reckless lending. 🏡 #Macroprudential
💥📉 Microprudential oversight can’t go it alone.
Explore how #macroprudential policy addresses systemic risks in an interconnected financial system.
Join leading voices from the ECB, ESRB & EUI at the Macroprudential Policy Implementation Academy (22 Sep–20 Oct).
fbf.eui.eu/course/macro...
💥📉 Microprudential oversight can’t go it alone.
Explore how #macroprudential policy addresses systemic risks in an interconnected financial system.
Join leading voices from the ECB, ESRB & EUI at the Macroprudential Policy Implementation Academy (22 Sep–20 Oct).
fbf.eui.eu/course/macro...
💥📉 Microprudential tools aren’t enough. Learn how #macroprudential policy tackles systemic risk in a connected world.
Join top experts from the @ecb.europa.eu, ESRB & @eui-eu.bsky.social at the Macroprudential Policy Implementation Academy (22 Sep–20 Oct).
Register 👉 fbf.eui.eu/course/macro...
Graph showing the rise in nonbank share in the corporate syndicated loan market. The growing footprint of nonbank financial institutions in corporate credit markets raises important – but often overlooked – questions about how monetary and macroprudential policies shape credit allocation to the real economy. Using global syndicated loan data, this column shows that nonbanks act as shock absorbers, shielding nonfinancial firms from tightening in both monetary and macroprudential policies. While nonbanks provide a valuable alternative funding source for nonfinancial corporations when bank credit contracts, supporting investment and economic activity, they also pose risks: tighter monetary and macroprudential policies may contribute decisively to shifting lending outside the regulatory perimeter, amplifying financial stability risks.
Nonbanks shield nonfinancial firms from tightening in both monetary and #macroprudential policies. They can shift lending outside the regulatory perimeter, thus amplifying financial stability risks.
Bruno Albuquerque, Eugenio Cerutti, Nanyu Chen, Melih Firat
cepr.org/voxeu/column...
#EconSky
Emerging markets with partially dollarised financial systems are particularly vulnerable to global financial cycles. This column examines how reserve requirements on foreign currency deposits can help mitigate credit booms induced by capital inflows. Focusing on Peru between 2008 and 2017, the authors combine microdata with a calibrated macro model to show that foreign currency reserve requirements reduce aggregate credit growth, with heterogeneous effects across banks depending on their exposure to foreign funding. These results underscore the value (and complexity) of macroprudential regulation in dollarised economies.
Foreign currency reserve requirements can be an effective tool to moderate aggregate credit growth in the face of capital inflows. In partially dollarised economies, asymmetries across banks make design of #macroprudential policy more complex.
E Andreasen, V Nuguer
cepr.org/voxeu/column...
#EconSky
Bank profitability and monetary policy affect how macroprudential policy impacts the tail risk of credit growth. High bank profitability limits its effectiveness, while monetary policy complements it #bdeResearch #macroprudential #bankreg bde.es/f/webbe/SES/... 3/3
Macroprudential policy has significant countercyclical effects, mitigating the risk of excessive credit growth during expansions and reducing the risk of severe credit contractions during crises #bdeResearch #macroprudential #bankreg www.bde.es/f/webbe/SES/... 2/3
🚨 New Working Paper🚨 DT2509: "Macroprudential policy and the tail risk of credit growth" by Jorge E. Galán #bdeResearch #macroprudential #bankreg www.bde.es/f/webbe/SES/... 1/3
"#Macroprudential is a beautiful and sophisticated word. However, in practice it amounts to very little, at least so far"- Cornerstone Macro
