Macroprudential Frameworks: Implementation, and Relationship with Other Policies - Malaysia

8 Pages Posted: 25 Jan 2018

Date Written: December 2017

Abstract

Given the increasing complexity and interconnectedness of the financial system, central banks have broadened their mandates and policy toolkit to address emerging risks to financial stability. This paper describes Malaysia’s experience in establishing its macroprudential framework. It highlights the institutional and governance arrangements made to support decision-making, and policy formulation to avert or reduce risks to financial stability. It also discusses the importance of coordinating different policy tools, such as monetary, macroprudential and fiscal measures, to balance policy trade-offs. Drawing on Malaysia’s experience in implementing household- and property-related macroprudential measures, the paper argues that recalibration of existing policies hinges on the objectives and circumstances of individual jurisdictions.

Full Publication: Macroprudential Frameworks, Implementation and Relationship with Other Policies

Keywords: macroprudential policy, financial stability, loan-to-value ratio

JEL Classification: E58, G28

Suggested Citation

, Central Bank of Malaysia, Macroprudential Frameworks: Implementation, and Relationship with Other Policies - Malaysia (December 2017). BIS Paper No. 94q, Available at SSRN: https://ssrn.com/abstract=3106079

Central Bank of Malaysia (Contact Author)

Central Bank of Malaysia

Jalan Dato' Onn
P.O. Box 10922
Kuala Lumpur, 50929
Malaysia

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