<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The crisis pointed to the necessity for strong and stable financial system resistant to potential risks and shocks. Macroprudential policy is used to identify, monitor and asses systemic risks to financial stability. Therefore, it is very important to create effective and efficient macroprudential policy. To achieve this, it is crucial to create a strong institutional framework.</p><p>This paper deals with the importance of macroprudential policy for financial system stability. The first part of the paper explains the macroprudential policy and its connection with other economic policies. The second part refers to the necessity of building strong institutional framework and the importance of providing clear responsibilities for macroprudential policy, as long as precise determination of responsibilities is very suggested and important for further functioning and policy implementation. Responsibilities for macro-prudential policy and macroprudential supervision defers among countries.</p></abstract>

The crisis pointed to the necessity for strong and stable financial system resistant to potential risks and shocks. Macroprudential policy is used to identify, monitor and asses systemic risks to financial stability. Therefore, it is very important to create effective and efficient macroprudential policy. To achieve this, it is crucial to create a strong institutional framework.This paper deals with the importance of macroprudential policy for financial system stability. The first part of the paper explains the macroprudential policy and its connection with other economic policies. The second part refers to the necessity of building strong institutional framework and the importance of providing clear responsibilities for macroprudential policy, as long as precise determination of responsibilities is very suggested and important for further functioning and policy implementation. Responsibilities for macro-prudential policy and macroprudential supervision defers among countries.

Importance of Macroprudential Policy Implementation for Safeguarding Financial Stability

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The crisis pointed to the necessity for strong and stable financial system resistant to potential risks and shocks. Macroprudential policy is used to identify,...

Importance of Macroprudential Policy Implementation for Safeguarding Financial Stability

Publié en ligne: 23 sept. 2016

Pages: 79 - 98

Reçu: 05 mai 2016

Accepté: 08 juil. 2016

DOI: https://doi.org/10.1515/jcbtp-2016-0021

Mots clés
macroprudential policy, financial stability, economic policies, institutional framework

© 2016 Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Importance of Macroprudential Policy Implementation for Safeguarding Financial Stability

Publié en ligne: 23 sept. 2016

Pages: 79 - 98

Reçu: 05 mai 2016

Accepté: 08 juil. 2016

DOI: https://doi.org/10.1515/jcbtp-2016-0021

Mots clésmacroprudential policy, financial stability, economic policies, institutional framework

© 2016 Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
macroprudential policy, financial stability, economic policies, institutional framework