Committee on the Global Financial System
December 3, 2012
http://www.bis.org/press/p121203.htm
The recent financial crisis has accelerated efforts to develop
macroprudential policy frameworks. As a result, new or strengthened
mandates for macroprudential policies have been established in a growing
range of jurisdictions. A report released today by the Committee on the
Global Financial System (CGFS) provides practical guidance for
policymakers on how macroprudential instruments should be chosen,
combined and applied.
This report - prepared by a Working Group chaired by José-Manuel
González-Páramo, formerly of the European Central Bank - aims to help
policymakers in operationalising macroprudential policies.
Specifically, it identifies three high-level criteria that are key
in determining the selection and application of macroprudential
instruments:
- the ability to determine the appropriate timing for the instrument's activation or deactivation;
- the instrument's effectiveness in achieving the stated policy objective; and
- the instrument's efficiency in terms of a cost-benefit assessment.
In trying to operationalise these criteria, the report proposes a
number of practical tools that can help when choosing and implementing
macroprudential instruments.
William C Dudley, CGFS Chairman and President of the Federal Reserve
Bank of New York, says in the preface of the report: "We hope that the
practical approaches described in this report will prove to be a
relevant and timely input to the macroprudential policy frameworks that
are currently being established in a large range of jurisdictions."
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