Macroprudential Policy and Financial Stability in the Arab Region
58 Pages Posted: 9 Dec 2016
Date Written: May 2016
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: Suggested Citation