The Macroprudential Policy Framework Needs to Be Global

9 Pages Posted: 30 Apr 2019

See all articles by Claude Lopez

Claude Lopez

Milken Institute

Franco Bruni

Bocconi University - Department of Economics (ECO)

Date Written: March 26, 2019

Abstract

Basell III was a direct answer to the 2008 financial crisis. Now 10 years after the crisis, it is time to assess its timeliness and make the necessary adjustments so it becomes truly global. In this policy brief, we first clarify the goals of macroprudential policy before highlighting the main challenges that home and host countries may run into when global financial institutions lend beyond their home countries. We then suggest to focus on four priorities to address these vulnerabilities: (i) An adaptable and flexible global framework, (ii) The generalization of international standards and best practices, (iii) A stronger global data depository, (iv) Regulatory and monitoring cooperation.

Keywords: macroprudential policy, financial system resilience, G20

JEL Classification: E6, F5, F6, G

Suggested Citation

Lopez, Claude and Bruni, Franco, The Macroprudential Policy Framework Needs to Be Global (March 26, 2019). Available at SSRN: https://ssrn.com/abstract=3356927 or http://dx.doi.org/10.2139/ssrn.3356927

Claude Lopez (Contact Author)

Milken Institute ( email )

1250 Fourth Street
Santa Monica, CA 90401
United States

HOME PAGE: http://claudelopez.com

Franco Bruni

Bocconi University - Department of Economics (ECO) ( email )

Via G. Roentgen, 1 - 5E2FM04
20136 Milan
Italy

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