The use of Macroprudential Instruments by Region
“Differences in the application of regulation for lending standards and capital regulation for international banks mean that while there is a level playing field for lending standards regulation, this does not always apply for capital regulation, giving foreign branches regulated by their home authorities a competitive advantage.”
Regulatory arbitrage in action: evidence from banking flows and macroprudential policy
Authors: Rhiannon Sowerbutts and Dennis Reinhardt
From: Bank of England
Changes in Prudential Instruments across Time
Fiorentini and al. find that loan-to-value (LTV) caps and reserve requirements (on foreign and local currency) have the largest number of tightening and loosening episodes, despite not being the most implemented prudential instruments across countries.
Changes in Prudential Policy Instruments — A New Cross-Country Database
Authors: Elisabetta Fiorentino, Esther Segalla, Eugenio M Cerutti, Ricardo Correa
The index incorporates 8 elements crucial to the macroprudential framework: (1) the authority the central bank has in carrying out macroprudential policies; (2) the number of entities responsible for the maintenance of financial stability and their mandates; (3) the existence of a deposit insurance scheme; (4) the degree of transparency and accountability in the macroprudential regime; (5) the governance of the macroprudential framework; (6) how resorting to macroprudential instruments influences the monetary policy transmission mechanism; (7) how far the current macroprudential regime is from the FSB/G20 recommendations (timeliness and responsiveness to regulatory reforms); and (8) how quickly policy makers respond to the need to implement FSB/G20 measures intended to ensure financial system stability. “Organizational changes” refers to the impact of organizational changes in central banks since 2011.
Benchmarking macroprudential policies: An initial assessment
Authors: Domenico Lombardi, Pierre L. Siklos
From: Wilfrid Laurier University – CIGI