The financial crisis has signalized the need to reconsider the former micro approach to regulation and supervision of financial institutions. While in the past there was much debate on the scope of micro-prudential supervision on individual banks, there was little debate on macro-prudential supervision to secure the financial system. To achieve this goal an interplay of microprudential and macroprudential authority is needed to identify systemic risks as a key factor of financial stability and verify financial regulation from a systemic risk perspective.
The macroprudential approach focuses on risks arising in foreign financial markets and the impact of financial distress on important financial institutions. The key aspects of current regulatory reforms include measuring and regulating systemic risk, as well as designing macroprudential policies as a tool to manage possible future systemic risk. Currently is questioned how to design an effective macroprudential regulatory framework that achieves the financial stability objective corresponding to microprudential and monetary policy.
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Lombardi, D., and P. L. Siklos (2016). Benchmarking macroprudential policies: An initial assessment. Journal of Financial Stability 27: 35-49.
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De Nicoló, G., G. Favara, and L. Ratnovski (2014). Externalities and Macroprudential Policy. Journal of Financial Perspectives 2(1).
De Paoli, Bianca and Paustian (2017). Coordinating Monetary and Macroprudential Policies. Journal of Money, Credit and Banking 49: 319-349.
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Schoenmaker, D., and P. Wierts (2016). Macroprudential Supervision: From Theory to Policy. National Institute Economic Review 235(1): 50-62.
Schwaab, B., S.J. Koopman and A. Lucas (2017). Global Credit Risk: World, Country and Industry Factors. Journal of Applied Econometrics 32(2): 296-317.
Takáts, E., and J. Temesvary (2019). Can macroprudential measures make cross-border lending more resilient? Lessons from the Taper Tantrum. International Journal of Central Banking 15(1): 61-105.
Tayler. W.J., and R. Zilberman (2016). Macroprudential regulation, credit spreads and the role of monetary policy. Journal of Financial Stability 26: 144-158.
Tillmann, P. (2015). Estimating the effects of macroprudential policy shocks: A qual VAR approach. Economics Letters 135: 1-4.
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Special Issue of the International Journal of Central Banking on International Prudential Policy Spillovers: Volume 13, Supplement 1, March 2017.
Working and discussion papers
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Arce, F., J. Bengui and J. Bianchi (2023). Overborrowing, Underborrowing, and Macroprudential Policy. CEPR Discussion Paper No. DP18273.
Agénor, P.-R., L. Gambocorta, E. Kharroubi, G. Lombardo, and A. Luiz (2017). The International Dimensions of Macroprudential Policies. CEPR Discussion Paper No. 12108.
Agénor, P.-R., L. Gambocorta, E. Kharroubi, L. A. Pereira da Silva (2018). The effects of prudential regulation, financial development and financial openness on economic growth. BIS Working Papers No. 752.
Ahnert, T., K. Forbes, C. Friedrich, and D. Reinhardt (2018). Macroprudential FX Regulations: Shifting the Snowbanks of FX Vulnerability? CEPR Discussion Paper No. DP12766.
Ahnert, T., P. Hoffmann, A. Loenello, D. Porceallacchia (2023) Central Bank Digital Currency and Financial Stability. CEPR Press Discussion Paper No. 18222.
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Alam, Z., A. Alter, J. Eiseman, G. Gelos, H. Kang, M. Narita, E. Nier, and N. Wang (2019). Digging Deeper–Evidence on the Effects of Macroprudential Policies from a New Database. IMF Working Papers No. 19/66.
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Ampudia, M., and S. Van den Heuvel (2018). Monetary policy and bank equity values in a time of low interest rates. ECB Working Paper No. 2199.
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Arregui,N., J. Benes, I. Krznar, S. Mitra, and A.O. Santos (2013). Evaluating the net benefits of macroprudential policy: A cookbook. IMF Working Paper 13/167.
Ayyagari, M., T. Beck, and M. Soledad Martinez Peria (2018). The Micro Impact of Macroprudential Policies: Firm-Level Evidence. IMF Working Paper No. 18/267.
Baba, C. , S. Dell’Erba, E. Detragiache, O. Harrison, A. Mineshima, A. Musayev, and A. Shahmoradi (2020). How Should Credit Gaps Be Measured? An Application to European Countries. IMF Working Paper 20/6
Bank for International Settlements (2012). Operationalising the selection and application of macroprudential instruments. CGFS Papers No 48.
Basten, C., and C. Koch (2015). Higher bank capital requirements and mortgage pricing: Evidence from the countercyclical capital buffer (CCB). BIS Working Papers No 511.
Bengui, J., J. Bianchi (2019). Macroprudential Policy with Leakages. CEPR Discussion Papers No. 13951.
Bennani, T., M. Després, M. Dujardin, T. Duprey, and A. Kelber (2014). Macroprudential framework: key questions applied to the French case. Banque de France Occasional Papers No. 9.
Bhattacharya, R., P. Jeasakul, H. Kang, S. Munoz, F. Vitek, N. Wang, and R. Zandvakil (2017). Macroprudential Policy Spillovers: A Quantitative Analysis. IMF Working Paper No. 17/170.
Blanchard,O., G. Dell’Ariccia, P. Mauro, and an IMF Staff Team (2013). Rethinking macro policy II: Getting granular. IMF Staff Discussion 13/03.
Beirne, J., and C. Friedrich (2014). Capital flows and macroprudential policies – A multilateral assessment of effectiveness and externalities. Bank of Canada Working Paper 2014-31.
Breckenfelder, J., and M. Hoerova (2023). Do non-banks need access to the lender of last resort? Evidence from fund runs. ECB Working Paper Series No. 2805.
Buch, C., and L. Goldberg (2016). Cross-Border Prudential Policy Spillovers: How Much? How Important? Evidence from the International Banking Research Network. NBER Working Paper No. 22874.
Cantú, C., L. Gambacorta, and I. Shim (2020). Measuring the effectiveness of macroprudential policies using supervisory bank-level data. BIS Working Paper No. 110.
Cerutti, E.M., and H. Zhou (2018). Cross-border Banking and the Circumvention of Macroprudential and Capital Control Measures. IMF Working Paper No. 18/217.
Claessens, S. (2014). An overview of macroprudential policy tools. IMF Working Paper 14/214.
Danisewicz, P., D. Reinhardt and R. Sowerbutts (2015). On a tight leash: does bank organisational structure matter for macroprudential spillovers? Bank of England Working Paper No. 524.
Darracq Pariès, M., C. Kok, E. Rancoita (2019). Macroprudential policy in a monetary union with cross-border banking. ECB Working Paper No. 2260.
Drechsler, I., A. Savov, P. Schnabl (2019). How Monetary Policy Shaped the Housing Boom. CEPR Discussion Paper No. DP14252.
Dutra Araujo, J., M. Patnam, A. Popescu, F. Valencia, and W. Yao (2020). Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates. IMF Working Paper 20/67.
Engel, C. (2015). Macroprudential policy in a world of high capital mobility: Policy implications from an academic perspective. NBER Working Paper No. 20951.
Epure, M., I. Mihai, C. Minoiu and J. Peydro (2017). Household Credit, Global Financial Cycle, and Macroprudential Policies: Credit Register Evidence from an Emerging Country. Available at SSRN: https://ssrn.com/abstract=3044959 or http://dx.doi.org/10.2139/ssrn.3044959.
Fabiani, A., M. López Piñeros, J.L. Peydró, and P. E. Soto (2021). Capital Controls, Domestic Macroprudential Policy and the Bank Lending Channel of Monetary Policy. CEPR Discussion Paper No. 16510
Faia, E., and S. Karau (2019). Banks’ Systemic Risk and Monetary Policy. CEPR Discussion Papers No. 13456.
Ferguson, N., Kornejew, M., Schmelzing, P., and Schularick, M. (2023). The Safety Net: Central Bank Balance Sheets and Financial Crises, 1587-2020. CEPR Discussion Paper DP17858.
Forbes, K., C. Friedrich, and D. Reinhardt (2023). Stress Relief?: Funding Structures and Resilience to the Covid Shock. NBER Working Paper No 31255.
Franch, F., L. Nocciola, D. Żochowski (2019). Cross-border effects of prudential regulation: evidence from the euro area. ECB Working Paper Series No. 2285.
Frydman, C., and C. Xu (2023). Banking Crises in Historical Perspective. NBER Working Paper No. 31092.
Galati, G., and R. Moessner (2014). What do we know about the effects of macroprudential policy?. DNB Working Paper No. 440.
Gambacorta, L., and A. Pabón (2017). The impact of macroprudential policies and their interaction with monetary policy: an empirical analysis using credit registry data. BIS Working Paper No 636.
Gandré, P., M. Mariathasan, O. Merrouche, and S. Ongena (2020). Unintended Consequences of the Global Derivatives Market Reform. CEPR Working Paper No. 14802.
Genberg, H., and M. Zamorski (2015). Implementing macroprudential policies: Challanges, pitfalls and way forward. SAECEN Working Paper 9/2015.
Haldane, A., M. Roberts-Sklar, T. Wieladek, and C. Young (2016). QE: the story so far. CEPR Working Paper 11691.
Huizinga, H., L. Laeven (2019). The procyclicality of banking:
evidence from the euro area. ECB Working Paper No. 2288.
Ilzetzki, E., K. Rogoff, and C. M. Reinhart (2020). Why is the Euro Punching Below its Weight. CEPR Discussion Papers No. 14315.
Jeanne, O. (2014). Macroprudential policies in a global perspective. NBER Working Paper No. 19967.
Kalemli-Ozcan, S. (2019). US Monetary Policy and International Risk Spillovers. CEPR Discussion Papers No. 14053.
Kleinnijenhuis, A. M., C. Goodhart and J. D. Farmer (2021). Systemic Implications of the Bail-In Design. CEPR Discussion Papers No. 16509
Krogstrup, S., and Goldberg, L. (2023). International Capital Flow Pressures and Global Factors. CEPR Discussion Paper No. DP17833.
Lagos, R., S. Zhang (2019). The Limits of Monetary Economics: On Money as a Medium of Exchange in Near-Cashless Credit Economies. CEPR Discussion Papers No. 14057.
Lim, C., F. Columba, A. Costa, P. Kongsamut, A. Otani, M. Saiyid, T. Wezel, and X. Wu (2011). Macroprudential policy: What instruments and how to use them? Lessons from country experiences. IMF Working Paper 11/238.
Li, Z., and Song, J. (2023). Deposit Market Power and Bank Risk-Taking. Princeton University Working Paper.
Maddaloni, A., A. Scopelliti (2019). Rules and discretion(s) in prudential regulation and supervision: evidence from EU banks in the run-up to the crisis. ECB Working Paper No. 2284.
Mendoza, E. (2016). Macroprudential Policy: Promise and Challenges. NBER Working Paper No. 22868.
Metrick, A., and P. Schmelzing (2023). The March 2023 Bank Interventions in Long-Run Context – Silicon Valley Bank and beyond. NBER Working Paper 31066.
Müller K. (2019). Electoral Cycles in Macroprudential Regulation. ESRB Working Paper No. 106
Osinski, J., K. Seal, L. Hoogduin, and an IMF Staff Team (2013). Macroprudential and microprudential Policies: Toward cohabitation. IMF Staff Discussion Note 13/05.
Pedrono, J. (2017). International integration, currency diversification and banking stability. Aix-Marseille School of Economics Working Paper.
Richter, B., M. Schularick, and I. Shim (2018). The Costs of Macroprudential Policy. NBER Working Paper No. 24989.
Segura A., and J. Suarez (2019). Optimally Solving Banks’ Legacy Problems. CEPR Discussion Paper No. DP13718.
Schoenmaker, D. (2012). The missing link in banking union: Macro-Prudential supervision. DSF Policy Briefs.
Schularick, M., L. Ter Steege, and F. Ward (2020). Leaning against the wind and crisis risk. CEPR Working Paper No. 14797.
Takáts, E., and J. Temesvary (2019). How does the interaction of macroprudential and monetary policies affect cross-border bank lending? BIS Working Paper No. 782.
Angelini, P., S. Nicoletti-Altimari, and I. Visco (2012). Macroprudential, microprudential and monetary policies: conflicts, complementarities and trade-offs. Banca D’Italia Occasional Papers 140.
Bank of England (2011). Instruments of macroprudential policy: A discussion paper.
Banque de France (2014). Macroprudential policies: implementation and interactions. Financial Stability Review No. 18.
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