Dealing with the Challenges of Macro Financial Linkages in Emerging Markets

The 2008 financial crisis has highlighted the challenges associated with global financial integration and emphasized the importance of macro financial linkages. In the financial sector, attention is being directed toward macro prudential regulations that are geared toward the stability of the financial system as a whole. The Third Basel Accord (Basel III) aims to dampen the pro-cyclicality of the financial sector and to reduce cross sectional systemic risks partly by introducing measures to address liquidity and issues of banks being too big to fail. In the macro arena, the facts that price stability was not sufficient to guarantee macroeconomic stability and that financial imbalances developed despite low inflation and small output gaps have highlighted the need for additional tools (macro prudential policies) to complement monetary policy in countercyclical management. Emerging markets face different conditions and have key structural features that can have a bearing on the relevance and efficacy of the measures. The chapters in this volume discuss the challenges of dealing with macro financial linkages and explore the policy toolkit available for dealing with systemic risks with particular reference to emerging markets. This report is organized as follows: chapter one is adapting macro prudential approaches to emerging and developing economies; chapter two is adapting micro prudential regulation for emerging markets; chapter three presents capital flow volatility and systemic risk in emerging markets: the policy toolkit; chapter four presents monetary policy and macro prudential regulation: whither emerging markets; chapter five deals with macro prudential policies to mitigate financial vulnerabilities in emerging markets; chapter six presents sailing through the global financial storm; and chapter seven presents operation of macro prudential policy measures.

Bibliographic Details

Main Authors:	Canuto, Otaviano, Ghosh, Swati R.
Format:	Publication biblioteca
Language:	en_US
Published:	Washington, DC: World Bank 2013-10-11
Subjects:	affiliate, arbitrage, Asset Class, asset classes, asset holdings, Asset Price, asset prices, asset sales, asset value, asset-backed securities, bad debt, Balance Sheet, balance sheets, bank assets, bank balance sheets, Bank Branches, Bank Equity, Bank for International Settlements, bank holding, bank holding companies, Bank Indonesia, Bank Lending, Bank Loans, Bank of England, Bank of Japan, Bank of Korea, bank portfolios, banking assets, banking regulation, Banking Sector, banking supervision, banking system, banking systems, Bankruptcy, Banks, basis points, bond, bond credit rating, boom-bust cycles, Borrower, business cycle, Business Cycles, Capital Adequacy, Capital Flow, Capital Flows, capital gains, Capital Inflow, Capital Inflows, Capital Markets, capital requirement, Capital Requirements, CDs, Central Banking, central banks, certificates of deposit, collateral, Commercial Banks, commercial paper, Consumer Loans, Corporate Debt, Corporate Governance, Country Risk, Credit Default, Credit Default Swap, credit growth, Credit Market, credit unions, creditor, creditors, Currency, Currency Crisis, Debentures, Debt, debt management, debt obligation, debt overhang, debt restructuring, Debts, Deposit, depositors, Deposits, Derivatives, developing countries, Development Bank, domestic credit, Domestic Currency, domestic interest rate, Economics, emerging economies, Emerging Market, emerging market economies, Emerging Markets, employment, Equilibrium models, Equity Financing, equity funds, Escrow, European Central Bank, Exchange Commission, Exchange Rate, externalities, financial assets, Financial Capital, Financial Crises, Financial Crisis, Financial Development, Financial Distress, financial flows, Financial Instability, Financial Institution, financial institutions, Financial Integration, financial market, financial markets, Financial Regulation, Financial Services, financial stability, financial stress, Financial Studies, Financial System, financial systems, Fiscal Policy, Foreign Assets, Foreign Bank, Foreign Banks, foreign currency, Foreign Debt, foreign direct investment, Foreign Exchange, Foreign Exchange Transactions, Foreign Inflows, global economy, Global Finance, gross domestic product, hedge funds, holding, home equity, household wealth, Housing, Housing Prices, income growth, Inflation, information disclosure, insurance, interbank markets, Interest Rates, International Bank, International Finance, International Financial Contagion, international markets, investment banks, investment vehicles, investor bases, investor confidence, line of credit, Liquidity, Liquidity Ratio, loan, Loanable Funds, local lenders, macroeconomic fluctuation, Macroeconomic Policies, macroeconomic policy, macroeconomic stability, macroeconomics, Market discipline, market failures, market prices, maturities, Maturity, Maturity Date, maturity transformation, Monetary Fund, monetary policies, Monetary Policy, money market, money-market, Mortgage, Mortgage Finance, Mortgage Loans, mortgage-backed security, National Security, negative shock, nonbank financial institutions, nonperforming loan, NPL, Output Losses, payment system, penalties, Policy Responses, Portfolio, portfolio choice, Portfolio Management, present value, Price Changes, price stability, Private Capital, Private Capital Inflow, Private Capital Inflows, Private Equity, probability of default, profitability, Prudential Regulation, Prudential Regulations, real sector, regulatory forbearance, Reserve, reserve requirements, return, return on equity, risk taking, savings, savings banks, Securities, sovereign ratings, subnational finance, subsidiaries, subsidiary, surcharges, Systemic Risk, Tax, time deposits, transparency, Type of Investor, value of assets, withdrawal, withdrawal of funds,
Online Access:	http://hdl.handle.net/10986/16202
Tags:	Add Tag No Tags, Be the first to tag this record!