This holistic approach is called macroprudential policy. Macroprudential policy does not seek to replace traditional regulation of financial institutions, such as commercial banks, which are essential ...
Our results suggest that coordinating macroprudential policies with credit developments further reduces systemic risk by discouraging excessive risk-taking when banks’ capital is more at stake. Banks ...
However, the RBI’s approach is distinguished by its inflation-targeting mechanism, introduced in 2016, which aims to keep inflation within a defined range between 4% and 2%. In contrast, economies ...
Perhaps the most interesting type of reform to have emerged from the global financial crisis is the call for “macroprudential” regulation. Macroprudential regulation, in broadest terms, seeks to ...