Macroprudential policies : pursuing effective coordination in an evolving financial landscape
(2024)
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Details
- Authors
- Supervisors
- Candelon, Bertrand
- Abstract
- After the Global Financial Crisis (GFC), Macroprudential Policies (MPP) have emerged as critical tools for safeguarding financial stability. MPP represent a shift from focusing solely on individual institutions to a systemic approach addressing vulnerabilities across the increasingly interconnected financial system and broader financial inclusion. The thesis addresses gaps in recent literature on MPP, such as advancing our knowledge of the interaction between Monetary Policy and MPP, cross-border contagion detection techniques, and the financial inclusion – financial stability (FI-FS) nexus Its findings offer valuable insights for policymakers and researchers alike. First, inflation-targeting regimes appear to strengthen the effectiveness of MPP in mitigating banking systemic risks. Second, a novel method allows for the identification of multiple breaks in volatility and correlation parameters, a crucial aspect for improving cross-border contagion detection and optimizing the activation of MPP, e.g., limits on foreign exchange exposures. Lastly, MPP appear to be crucial in the context of broader financial inclusion driven by banks and non-banking financial institutions to mitigate banking systemic risk.
- Affiliations
UCLouvain SSH/LIDAM/LFIN - Louvain Finance
Citations
Mugrabi Otero, F. D. (2024). Macroprudential policies : pursuing effective coordination in an evolving financial landscape. https://hdl.handle.net/2078.5/217906