PROMULGATION OF THE MACROPRUDENTIAL REGULATION AND THE GUIDELINES FOR THE NBU MACROPRUDENTIAL POLICY
DOI:
https://doi.org/10.35774/jee2018.02.187Keywords:
Macroprudential policy, systemic vulnerability, financial system procyclicality, capital flows, commodity economies, leverage, capital buffers.Abstract
Post-crisis spread of macroprudential regulation requires some generalizations and identification of the ways of adapting it to Ukraine. Current consensus about taxonomy and functionality of macroprudential toolkit is corresponded with empirical findings of potential efficiency of such instruments to restrain credit and assets price inflation. At the same time, macroprudential policy may be vulnerable to possibilities of large borrowing abroad and credit activity leakage on unregulated segments of financial system. In the paper it is noted that commodity rich economies constitute a specific profile there macroprudential policy is meant to diminish vulnerability to commodity prices volatility. Macroprudential instruments may help to restrain abnormal credit expansion in non-tradable sectors and bound sectoral credit concentration, thus opening new opportunities for sectoral policy. It is proved that macroprudential policy guidelines for National Bank of Ukraine should be determined by the specifics of implementing macroprudential policy in the environment of capital flows being influenced by the commodity prices, as well as by specific institutional distortions caused by oligarchical banking.
JEL: E58, E59, O23, Q33.
References
Borio, C., White, W. (2004). «Whither Monetary and Financial Stability? The Implications of Evolving Policy Regims». BIS Working Paper. № 147. pp. 1-51. https://doi.org/10.2139/ssrn.901387
Borio, C. (2006). «Monetary and Prudential Policies at a Crossroads? New Challenges in the New Century». BIS Working Paper. № 193. pp. 2-28. https://doi.org/10.2139/ssrn.948135
Borio, C. (2006). «Monetary Policy and Financial Stability: What Role in Prevention and Recovery?» BIS Working Paper. № 440. pp. 1-23.
Bernanke, B., Gertler, M. (1999). «Monetary Policy and Asset Prices Volatility». Federal Reserve Bank of Kansas City Economic Review. Issue QIV, pp. 17-51. https://doi.org/10.3386/w7559
Svensson, L. (2016). «Cost-Benefits Analysis of Leaning Against the Wind: Are Costs Larger Also with Less Effective Macroprudential Policy?» IMF Working Paper. WP/16/3. pp. 1-76. https://doi.org/10.5089/9781498314787.001
IMF. (2015). Monetary Policy and Financial Stability. Staff Report. - Sept. pp. 1-66.
Bayoumi, T., Dell'Ariccia,G., Habermeier, K. Mancini-Griffoli, T., Valencia, F. (2014). «Monetary Policy in the New Normal». IMF Staff Discussion Note. SDN/14/3. pp. 1-48. https://doi.org/10.5089/9781475561784.006
IMF-FSB-BIS. (2016). «Elements of Effective Macroprudential Policies. Lessons from International Expirience». 26 Augest 2016. pp. 1-22.
IMF. (2013). «Key Aspects of Macroprudential Policy - Background Paper». IMF Policy Paper. June. pp. 1-68. https://doi.org/10.5089/9781498341714.007
IMF. (2013). «Key Aspects of Macroprudential Policy». IMF Policy Paper. June. pp. 1-56. https://doi.org/10.5089/9781498341714.007
IMF. (2013). «The Interaction of Monetary and Macroprudential Policy». IMF Policy paper. January. pp. 1-48. https://doi.org/10.5089/9781484375624.002
CGFS. (2010). «Macroprudential Instruments and Frameworks: A Stocktaking of Issues and Experience». CGFS Paper. № 38 (Basel: BIS). pp. 1-46.
Claessens, S. (2014). «An Overview of Macroprudential Policy Tools». IMF Working Paper. WP/14/214. pp. 37. https://doi.org/10.5089/9781484358115.001
Cerutti, E., Correa, R., Fiorentino, E., Segalla, E. (2016). «Changes in Prudential Policy Instruments - A New Cross-Country Database». IMF Working Paper. WP/16/110. pp. 1-23. https://doi.org/10.5089/9781475574517.001
Bruno, V., Shim, I., Song Shin, H. (2015). «Comparative Assessment of Macroprudential Policies». BIS Working Paper № 502. pp. 1-56.
Cerutti, E., Claessens, S., Laeven, L. (2015). «The Use and Effectiveness of Macroprudential Policies: New Evidence». IMF Working Paper. WP/15/61. pp. 1-36. https://doi.org/10.5089/9781498321051.001
Carreras, O., Davis, Ph., Piggot, R. (2016). «Macroprudential Tools, Transmission and Modelling». Firstrun Deliverable 4.7. pp. 1-57. https://doi.org/10.2139/ssrn.2967270
Cizel, J., Frost, J., Houben, A., Wierts, P. (2016). «Effective Macroprudential Policy: Cross-Sectors Substitution from Price and Quantity Measures». IMF Working Paper. WP/16/94. pp. 1-47. https://doi.org/10.5089/9781484337738.001
Gulcin Ozkan, F., Filiz Unsal, D. (2014). «On the Use of Monetary and Macroprudential Policies for Small Open Economies». IMF Working Paper. WP/14/112. pp. 1-26. https://doi.org/10.5089/9781498375429.001
Turner, Ph. (2016). «Macroprudential Policies, the Long-term Interest Rate and the Exchange Rate». BIS Working Paper № 588. pp. 1-23.
Kurronen, S. (2012). «Financial Sector in Resource-Dependent Economies». BOFIT Discussion Papers. 2012.6. - pp. 1-35. https://doi.org/10.2139/ssrn.2027444
Masson, P. (2014). «Macroprudential Policies, Commodity Prices and Capital Inflows». BIS Papers № 76. pp. 59-75.
Alberola, E., Benigno, G. (2017). «Revisiting the Commodity Curse: A Financial Perspective». BIS Working Papers. № 609. pp. 1-55. https://doi.org/10.3386/w23169
Gonzalez, A., Hamann, F., Rodriguez, D. (2015). «Macroprudential Policies in Commodity Exporting Economy». BIS Papers № 86. pp. 69-73.
IMF-GCC. (2015). «Oil Prices, Financial Stability, and the Use of Countercyclical Macroprudential Policies in the GCC». Annual Meeting of Ministers of Finance and Central Bank Governors. Nov. 10, 2015. Doha, Qatar. (IMF: Staff Paper). pp. 1-30.
Koziuk, V. (2016). «Independence of Central Banks in Commodity Economies». Gerald of National Bank of Ukraine. March. pp. 6-25. https://doi.org/10.26531/vnbu2016.235.006
Aizenman, J., Noy, I. (2011). Inflation Targeting and Real Exchange Rates in Emerging Markets. World Development. Vol. 39. № 5. pp. 712-724. https://doi.org/10.1016/j.worlddev.2010.11.005
IMF. 2015. «Where Are Commodity Exporters Headed? Output Growth in the Aftermath of the Commodity Boom». World Economic Outlook. October. 2015. Chapter 2.
Jimenez, G., Ongena, S., Peydro, J.-L., Saurina Salas J. 2012. «Macroprudential Policy, Countercyclical Bank Capital Buffers and Credit Supply: Evidence from Spanish Dynamic Provisioning Experiments». European Banking Center Discussion Paper 2012-011. https://doi.org/10.2139/ssrn.2049284
Zhang, L., Zoli, E. 2014. «Leaning Against the Wind: Macroprudential Policy in Asia». IMF Working Paper. WP/14/22. pp. 34. https://doi.org/10.5089/9781475572476.001
Balls, Ed, Howart, J., Stansbury, A. (2016). «Central Bank Independence Revisited: After the Financial Crisis, What Should a Model Central Bank Look Like?» Mossavar-Rahmani Center for Business and Government Working Paper. Nov. № 67. pp. 1-113.
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
