A macro-prudential supervision framework to enhance financial stability
Wang Zhaoxing, vice chairman of the China Banking Regulatory Commission, feels that macro-prudential policy tools should be a mix of rules and discretion.
The global financial crisis highlighted the complementary relationship between the macro-prudential and micro-prudential elements of effective supervision. History has shown that neither price stability nor effective supervision at the individual firm level is sufficient to secure financial stability. Macro-prudential supervision has been widely regarded as a new element in the financial stability framework. Macro-prudential analysis, macro-prudential policy toolkit and relevant institutional arrangements have been acknowledged as three key elements of a macro-prudential framework.
Please login to read the complete article. If you already have an account, you can login
, Risk and Regulation
Keywords: Wang Zhaoxing
, Macro-Prudential Analysis