Macroprudential Policy and Financial Stability in the Arab Region

58 Pages Posted: 9 Dec 2016

See all articles by A. Prasad

A. Prasad

International Monetary Fund (IMF)

Heba Abdel Monem

Arab Monetary Fund

Pilar Garcia Martinez

International Monetary Fund (IMF)

Date Written: May 2016

Abstract

Several characteristics of the structure of the Arab economies, their economic policy framework, and their banking systems make macroprudential policy a particular relevant tool. For most oil exporters, heavy reliance on the extractive sector for generating fiscal revenues and export earnings translates into increased vulnerabilities to oil price shocks. In the case of oil importers, relatively small external and fiscal buffers make them highly vulnerable to shocks. This paper discusses the experience of Arab countries in implementing macroprudential policies and contains recommendations to strengthen their macroprudential framework.

Keywords: Macroprudential Policy, Cooperation Council for the Arab States of the Gulf, Oil exporting countries, Banking systems, Economic policy, Financial stability, Macroprudential policy, systemic risk, credit, financial stability

JEL Classification: E58, G28

Suggested Citation

Prasad, Ananthakrishnan and Abdel Monem, Heba and Garcia Martinez, Pilar, Macroprudential Policy and Financial Stability in the Arab Region (May 2016). IMF Working Paper No. 16/98. Available at SSRN: https://ssrn.com/abstract=2882694

Ananthakrishnan Prasad (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Heba Abdel Monem

Arab Monetary Fund ( email )

Abu Dhabi
United Arab Emirates

Pilar Garcia Martinez

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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