Macroprudential and Microprudential Policies Toward Cohabitation

Effective arrangements for micro and macroprudential policies to further overall financial stability are strongly desirable for all countries, emerging or advanced. Both policies complement each other, but there can also be potential areas of overlap and conflict, which can complicate this cooperati...

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Bibliographic Details
Main Author: Osinski, Jacek
Other Authors: Hoogduin, Lex, Seal, Katharine
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2013
Series:Staff Discussion Notes
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Macroprudential and Microprudential Policies  |b Toward Cohabitation  |c Jacek Osinski, Katharine Seal, Lex Hoogduin 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2013 
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651 4 |a United Kingdom 
653 |a Microprudential policy 
653 |a Credit 
653 |a Asset requirements 
653 |a Banks 
653 |a Finance 
653 |a Financial sector policy and analysis 
653 |a Mortgages 
653 |a Systemic risk 
653 |a Policy Objectives 
653 |a Policy Coordination 
653 |a Financial risk management 
653 |a Capital and Ownership Structure 
653 |a Goodwill 
653 |a Macroeconomics 
653 |a Financial Risk and Risk Management 
653 |a Financing Policy 
653 |a Money Multipliers 
653 |a Countercyclical capital buffers 
653 |a Economic policy 
653 |a Depository Institutions 
653 |a Microeconomics 
653 |a Financial sector stability 
653 |a Policy Designs and Consistency 
653 |a General Financial Markets: Government Policy and Regulation 
653 |a Value of Firms 
653 |a Micro Finance Institutions 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Banks and Banking 
653 |a Financial Markets and the Macroeconomy 
653 |a Money Supply 
653 |a Financial regulation and supervision 
653 |a Financial services industry 
653 |a Macroprudential policy 
653 |a Finance: General 
653 |a Financial services law & regulation 
700 1 |a Hoogduin, Lex 
700 1 |a Seal, Katharine 
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520 |a Effective arrangements for micro and macroprudential policies to further overall financial stability are strongly desirable for all countries, emerging or advanced. Both policies complement each other, but there can also be potential areas of overlap and conflict, which can complicate this cooperation. Organizing their very close interactions can help contain these potential tensions. This note clarifies the essential features of macroprudential and microprudential policies and their interactions, and delineates their borderline. It proposes mechanisms for aligning both policies in the pursuit of financial stability by identifying those elements that are desirable for effective cooperation between them. The note provides general guidance. Actual arrangements will need take into account country-specific circumstances, reflecting the fact that that there is no “one size fits all.”