Siregar, Reza and Lim, Vincent C.S. (2011): Living with Macro-financial Linkages: Policy Perspectives and Challenges for SEACEN Countries.
Download (719Kb) | Preview
The deepening financial liberalisation and the tightening of financial integration globally have made it more challenging to manage macroeconomic policies in general, and to contain the spread of financial turbulence in particular. The financial sector has been shown to be inherently pro-cyclical and capable of amplifying macroeconomic volatilities, making management of monetary policy increasingly complex. In these ever changing financial landscapes, the success of monetary policy and macroeconomic policies, in general, hinges on the ability of policy makers to design policies that explicitly take into account macro-financial channels, and to interpret more cautiously the potential risk in financial system disruptions that can rapidly destabilise macroeconomic stability. The objective of this study is to take stock and examine the impact of linkages between macroeconomic development and financial market condition with a special focus on the SEACEN economies.
|Item Type:||MPRA Paper|
|Original Title:||Living with Macro-financial Linkages: Policy Perspectives and Challenges for SEACEN Countries|
|Keywords:||Macro-financial linkages, Macro-prudential, Stress-testing, Cross-border supervision, Basel III|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies
G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation
G - Financial Economics > G0 - General > G01 - Financial Crises
|Depositing User:||Reza Yamora Siregar|
|Date Deposited:||26. Jan 2011 20:46|
|Last Modified:||13. Feb 2013 08:10|
Alfaro, R. and Drehmann, M., (2009), “Macro Stress Tests and Crises: What Can We Learn?”, BIS Quarterly Review, December.
Andersen, H., Berge, T.O., Bernhardsen, E., Lindquist, K.G. and Vatne, B.H., (2008), “A Suite-of-Models Approach to Stress-Testing Financial Stability”, Norges Bank, Staff Memo, No. 2008/2, 3 June.
Bank Indonesia Website, What is Financial Stability? http://www.bi.go.id/web/en/Perbankan/Stabilitas+Sistem+Keuangan/Ikhtisar/Definis i+SSK/
Bayoumi, T. and Melander, O., (2008), “Credit Matters: Empirical Evidences of US Macro-Financial Linkages”, IMF Working Paper, WP/08/169.
Bernanke, B.S., (2010), “The Supervisory Capital Assessment Program--One Year Later”, Speech Delivered at the Federal Reserve Bank of Chicago 46th Annual Conference on Bank Structure and Competition, Chicago, Illinois, May 6.
BIS, (2000), Committee of the Global Financial System, Stress Testing By Large Financial Institutions: Current Practice And Aggregation Issues, April.
BIS, (2009), Basel Committee on Banking Supervision, Consultative Document, Report and Recommendations of the Cross-border Bank Resolution Group Issued for Comment by 31 December 2009, September.
BIS, (2009), Principles for Sound Stress Testing Practices and Supervision, Basel Committee on Banking Supervision, Consultative Document, January.
BIS, BCBS, Group of Governors and Heads of Supervision Announces Higher Global Minimum Capital Standards, Press Release, 12 September 2010
Blinder, (2010), “Two Cheers for the New Bank Capital Standards: Why Do We Still Rely on the Rating Agencies, and Why Are We Still Allowing Lehman Brothers Levels of Leverage”, Opinion, Wall Street Journal Online, http://online.wsj.com/article/SB10001424052748704523604575511813933977160. html.
Breuer, T., Jandaˇcka, M., Rheinberger, J. and Summer, M., (2009), “How to Find Plausible, Severe, and Useful Stress Scenarios”, International Journal of Central Banking, September.
Bunn, P., Cunningham, A. and Drehmann, M., (2005), “Stress Testing as a Tool for Assessing Systemic Risks”, Bank of England, Financial Stability Review, June.
Business Times, Zeti, A. A., “No Plans for Capital Curbs”, Wednesday, November 24,2010, 03.17 PM, http://www.btimes.com.my/Current_News/BTIMES/articles/zards/Article/index_html
Caruana, J., (2010), “Macroprudential Policy: What We Have Learned and Where We Are Going”, Key Note speech during Second Financial Stability Conference of the International Journal of Central Banking, Bank of Spain, Madrid, 17 June.
Caruana, J.(2010), “Macroprudential Policy: Could It Have Been Different This Time?”, Speech at the People’s Bank of China Seminar on Macroprudential Policy in Cooperation with the International Monetary Fund, Shanghai, Monday 18 October.
Central Bank, Chinese Taipei, Supervisory Structure, Website, http://www.cbc.gov.tw/ct.asp?xItem=882&CtNode=492&mp=2
Cetorelli, N. and Goldberg, L,S., (2008), “Banking Globalization, Monetary Transmission, and the Lending Channel”, NBER Working Paper, No. 14101.
Cetorelli, N. and Goldberg, L.S. ,(2009), “Globalized Banks: Lending to Emerging Markets in the Crisis”, Federal Reserve Bank of New York Staff Reports, No. 337, June.
Chang, R. & Velasco, A., (1998), "Financial Crises in Emerging Markets", NBER Working Papers 6606, National Bureau of Economic Research, Inc.
Čihák, M. and Podpiera, R., (2009), “Integrated Financial Supervision: Which Model?”, North American Journal of Economics and Finance, Vol.19.
Čihák, M., (2004), “Stress Testing: A Review of Key Concepts”, Czech National Bank, CNB Internal Research and Policy Note No.2.
Committee of European Bank Supervisors (CEBS), (2010), Colleges of Supervisors – 10 Common Principles, January 2009, http://www.c-ebs.org/getdoc/aeecaf1a-81b5-476a- 95dd-599c5e967697/Clean-V3-formatted-CEBS-2008-124-CEIOPS-SEC-08-54-.aspx- 2008-124-CEIOPS-SEC-08-54-.aspx.
Corsetti, G., Pesenti, P. and Roubini, N., (1998), “Paper Tigers? A Model of the Asian Crisis” NBER Working Papers 6783, National Bureau of Economic Research, Inc.
Craig, R.S., Davis, E.P and Pascual, A.G., (2006), “Sources of Procyclicality in East Asian Financial Systems”, in eds. Gerlach, S and Gruenwald, P, Procyclicality of Financial Systems in Asia, International Monetary Fund.
Crockett, A., (2000), “Marrying the Macro- and Micro-Prudential Dimensions of Financial Stability”, Remarks, Bank for International Settlements and Chairman of the Financial Stability Forum, before the Eleventh International Conference of Banking Supervisors, held in Basel, 20-21 September.
Danske Markets, (2010), Weekly Credit Updates, 17 September. De Graeve, F., Kick, T. and Koetter, M., (2008),”Monetary Policy and Financial (In) Stability: An Integrated Micro-Macro Approach”, Journal of Financial Stability, 4, pp.205-231.
de Larosière Group, (2009), the de Larosière Report on the High Level Group of Finanical Supervision in the EU, Brussels, 25 February.
Deutsche Bank, (2008), “Towards Full Integration of EU Banking Supervision: Using the Momentum - Creating the Integrated Supervisory Regime Necessary for an Integrated Markets” a Position Paper on EU Banking Supervision 16 June.
Eisenbeis, R.A. and Kaufman, G.G., (2008), “Cross-border Banking and Financial Stability in the EU”, Journal of Financial Stability, Vol.4.
Elliot, D.J., (2010), “Basel III, the Banks, and the Economy”, The Brookings Institution, July 23, http://www.brookings.edu/~/media/Files/rc/papers/2010/0726_basel_elliott/0726_basel_elliott.
Espenilla, Jr. N. A., (2007), “Banking Supervision and Examination in the Philippines”, Slide Presentation at the Financial Stability and Financial Sector Supervision: Lessons From the Past Decade and Way Forward ,Tokyo, Japan, December 17, http://www.imf.org/External/NP/seminars/eng/2007/fsa/pdf/s2/8_S2_speaker4.pdf.
European Financial Service Round-table, (EFS, 2009), Top 10 EFR Messages on Consolidated Supervisions and the College of Supervisors, 10 September,http://www.efr.be/members/upload/news/81062EFR%20sept09158.pdf
Fell, J., (2006), “Overview of Stress Testing Methodologies: From Micro to Macro”, Powerpoint Presentation at the Korea Financial Supervisory Commission/Financial Supervisory Service-International Monetary Fund Seminar on Macroprudential Supervision Conference: Challenges for Financial Supervisors, Seoul, November 7, http://www.imf.org/external/np/seminars/eng/2006/macropr/pdf/Fell.pdf
Ferguson Jr., R.W., (2003), “Should Financial Stability be an Explicit Central Bank Objective?”, in, Monetary Stability, Financial Stability and the Business Cycle: Five Views, BIS Papers, No. 18, September, http://www.bis.org/publ/bppdf/bispap18.pdf?noframes=1
Foot, M., (2003), “What is Financial Stability and How do we Get there?”, The Roy Bridge Memorial Lecture , ACI, UK, April.,http://www.fsa.gov.uk/Pages/Library/Communication/Speeches/2003/sp122.shtml
FSA, (2010), Reverse Stress Test, http://www.fsa.gov.uk/pages/About/What/International/stress_testing/firm_s/reverse_stress_testing/index.shtml
G30, (2008), “The Structure of Financial Supervision: Approaches and Challenges in a Global Marketplace”, A Report of the G30 Regulatory Systems Working Group by Chairman Paul A. Volcker and Vice Chairman, Roger W. Ferguson, Jr, G30 report, 6 Occtober, http://www.group30.org/100608release.pdf
Gray, D., Merton, R,C. and Bodie, Z., (2007), “New Framework for Measuring and Managing Macrofinancial Risk and Financial Stability,” NBER Working Paper, No. 13607.
Haldane, A.G., (2009), “Why Banks Failed the Stress Test”, Speech Given at the Marcus- Evans Conference on Stress-Testing, London, 13 February.
Hall, M.J.B., (2008), The Sub-prime Crisis, the Credit Squeeze and Northern Rock: the Lessons to be Learned”, Journal of Financial Regulation and Compliance, Vol. 16, No. 1.
Hardy, D.C. and Nieto, M.J., (2008), “Cross-border Coordination of Prudential Supervision and Deposit Guarantees”, IMF Working Paper, IMF, WP 08/283.
Hirtle, B., Schuermann, T. and Stiroh, K., (2009), “Macroprudential Supervision of Financial Institutions: Lessons from the SCAP”, Staff Report, No. 409, Federal Reserve Bank of New York, November.
Ho, D.C., (2010)., “Asset Price Bubbles and Challenges to Taiwan’s Central Bank”, Chapter Nine, in Kim J.H., Asset Price Bubbles and Challenges to Central Banks, The SEACEN Centre.
Holthausen, C. and Rønde, T., (2005), “Cooperation in International Banking Supervision”, Center for Economic Policy Research Discussion Paper Series No. 4990. http://www.ecb.int/pub/pdf/scpwps/ecbwp316.pdf
Hosoya, M. and Shimizu, T., (2002), “Implications of a Macro Stress Test on Financial Stability: Summary of the Second Census on Stress Tests”, Market Review, Bank of Japan,No 2002-E-4, December.
Houben, A., Kakes, J. and Schinasi, G., (2004), “Toward a Framework for Safeguarding Financial Stability”, IMF Working Paper WP/04/101.
IMF, (2010), “Bank Stress Tests, What Is a Bank Stress Test?”, IMF Survey Online, July 29, http://www.imf.org/external/pubs/ft/survey/so/2010/pol072910a.htm
IMF World Economic Outlook, October 2010.
Ingves, S., (2007), “Regulatory Challenges of Cross-border Banking: Possible Ways Forward”, Paper Presented at Reserve Bank of Australia, Sydney, Australia , 23/July, http://www.riksbank.se/templates/Page.aspx?id=25321
Kaminsky, G. and Reinhart, C., (1999), “The Twin Crises: The Causes of Banking and Balance of Payments Problems”, The American Economic Review, Vol. 89, No.3, pp. 473-500, June.
Kashyap, A.K., (2010), “Examining the Link Between Fed Bank Supervision and Monetary Policy, Testimony, House Financial Services Committee. March 17, http://faculty.chicagobooth.edu/brian.barry/igm/kashyaptestimony.pdf.
Kay, J., (2010), “Banking Needs More Robust Stress Tests Than These”, July 27, Financial Times, http://www.ft.com/cms/s/0/18156e7c-99ae-11df-a852-00144feab49a.html
Keasey, K. and Veronesi, G., (2008), “Lessons from the Northern Rock Affair”, Journal of Financial Regulation and Compliance, Vol. 16, No. 1.
King, M., (2010), “Banking: From Bagehot to Basel, and Back Again”, Speech at the Second Bagehot Lecture Buttonwood Gathering, New York City on Monday 25 October. http://www.bankofengland.co.uk/publications/speeches/2010/speech455.pdf
Kirchfeld, A. and Clark, S., (2010), “Deutsche Bank CEO Says EU Stress Tests Could Be‘Dangerous'”, Bloomberg News, http://www.bloomberg.com/news/2010-06-10/ackermann-says-publishing-bank-stress-tests-data-could-be-very-dangerous-.html
Kishan, R.P. and Opiela, T.P., (2000), “What Do a Million Observations on Banks Say About the Transmission of Monetary Policy?”, American Economic Review, Vol.90, No.3.
Kodres, L. and Narain, A., (2009), “What is to be Done”, Finance and Development, IMF, No. 1,Vol.46, March. Konishi, A., Opening Speech, at the Capital Flows Management Workshop, Asian Development Bank, 12 October 2010, Ha Noi, Viet Nam, http://www.adb.org/Documents/Speeches/2010/sp2010065.asp.
Lindgren, C.J., (2007), “Monetary and Supervisory Policies and Banking System Soundness: An Overview in Financial System Soundness and Risk-Based Supervision”, Edited Villanueva, D., The SEACEN Centre.
Llewellyn, D.T., (2009), “The Northern Rock Crisis: A Multi-Dimensional Problem in the Failure of Northern Rock in The Failure of Northern Rock”, A Multi-Dimensional Case Study, Edited By Franco Bruni and David T. Llewellyn, Papers Presented in SUERF, The European Money and Finance Forum, Vienna., http://www.suerf.org/download/studies/study20091.pdf.
Llewellyn, D.T., (2008), “The Northern Rock Crisis: A Multi-Dimensional Problem, Waiting to Happen”, Journal of Financial Regulation and Compliance, Vol. 16, No.1.
Nagy, P.M., (2009) “Stress Testing of Banks And Policy Implications”, EBRP Blog, European Bank for Reconstruction and Development, 31 July, http://www.ebrdblog.com/wordpress/2009/07/stress-testing-of-banks-and-policyimplications
Nakornthab, D., (2010), “Household Indebtedness and Its Implications for Financial Stability”, Research Project Paper, The SEACEN Centre, Kuala Lumpur, Malaysia.
Nijathaworn, B., (2010), “Regional Financial Supervision – Challenges and the Way Forward for Asia, Remarks at the Conference on Macroeconomic and Financial Stability in Asian Emerging Markets, Organised by the Bank Negara Malaysia and Asian Development Bank Institute, Kuala Lumpur, 4 August.
Pan, J.P.E., (2010), “Challenge of International Cooperation and Institutional Design in Financial Supervision: Beyond Transgovernmental Networksshiva”, Chicago Journal of International Law, Vol. 11.
Ponce, J., (2010), “Who Should Decide on Emergency Liquidity Assistance?”, Researchbased Policy Analysis and Commentary From Leading Economists, 16 January.
Roldán, J.M., (2005), “Path to Effective Supervision – Convergence of Practices in Europe”, Slide Presentation at the First EU/US Retail Banking Forum organised by the WSBI/ESBG, Brussels, 14 November.
Saccomanni, F., (2009), “Fact-Finding for the Examination of the Communication of the European Commission on European Financial Supervision”, Testimony Before the Finance Committee of the Chamber of Deputies, Rome, 15 September, BIS Review No. 119. http://www.bis.org/review/r091006e.pdf.
Schinasi, G.J., (2004), “Defining Financial Stability”, Working Paper WP/04/187, IMF.
Siregar, R.Y., (2010), “Macro-Prudential Approaches to Banking Regulation: Perspectives of Selected Asian Central Banks”, Paper Presented at the Conference on Banking and Financial Stability in Asian Emerging Markets, Organised Jointly by the Asian Development Bank Institute and Bank Negara Malaysia, Kuala Lumpur, August 4.
Siregar, R.Y. and Choy, K.M., (2010), “Determinants of International Bank Lending from the Developed World to East Asia”, IMF Staff Papers, Vol. 57, No.2, pp. 484-516.
Siregar, R.Y. and Lim, C.S., Vincent, (2010), “The Role of Central Banks in Sustaining Economic Recovery and in Achieving Financial Stability” Journal of Advanced Studies in Finance, Vol.1, Summer.
Siregar, R.Y., and James, W.E., (2006), “Designing an Integrated Finanical Supervision Agency: Selected Lessons and Challenges for Indonesia”, ASEAN Economic Bulletin, Vol. 23, No.1
Slaughter and May (2010), Basel 3 Agreements at Last but Question Remains, Briefing, September, http://www.slaughterandmay.com/media/1466594/basel_3_agreement_at_last_but_questions_remain.pdf
Sorge, M., (2004), “Stress-testing Financial Systems: An Overview of Current Methodologies”, BIS Working Papers, No. 165, December.
Subhanij, T., (2010), “Liquidity Measurement and Management in the SEACEN Countries”, Research Project Paper, The SEACEN Centre, Kuala Lumpur, Malaysia.
Subhaswadikul, M., (2010), “Stress-Testing: The Experience of Bank of Thailand”, Power Point Presentation at the 3rd SEACEN-Deutsche Bundesbank Intermediate Course on Banking.
Sundararajan, V., Enoch, C.H., San José, A., Hilbers, P., Krueger, R., Moretti, M., and Slack, G., (2002), “Financial Soundness Indicators: Analytical Aspects and Country Practices”, Occasional Paper No. 212 IMF.
The STAR, (2010), Basel III Eases Asia Bank Capital Raising Fears, September 14.
Tarullo, D.K., (2010), Lessons from the Crisis Stress Tests, Speech Presented at the Federal Reserve Board International Research Forum on Monetary Policy, Washington, D.C., March 26. http://www.federalreserve.gov/newsevents/speech/tarullo20100326a.htm
The Economist, (2010), “Agents of Change, Conventional Economic Models Failed to Foresee the Financial Crisis. Could Agent-based Modelling Do Better?”, Economic Focus, Jul 22.
The Institute of International Finance, Inc, Capital Flows to Emerging Markets, 4 October 2010, http://www.iif.com/press/press+161.php
The Local, (2010), Germany Agrees to Release Bank Stress Tests, 17 Jun, http://www.thelocal.de/money/20100617-27929.html
Thomas Breuer, T., Jandaˇcka, M., Rheinberger, J. and Summerb, M., (2009), “How to Find Plausible, Severe, and Useful Stress Scenarios”, International Journal of Central Banking, September.
Trichet, J.C., (2007), “Towards the Review of the Lamfalussy Approach: Market Developments, Supervisory Challenges and Institutional Arrangements”, Keynote Speech at the First CEBS Conference, London, 9 May.
Trichet, J.C., (2005), Opening Remarks, Press Briefing on the ECB Financial Stability Review, Frankfurt am Main, 31 May.http://www.ecb.int/press/key/date/2005/html/sp050531_1.en.html
Véron, N., (2008), Supervisory Colleges: Way Forward or Red Herring?, French in La Tribune, November 26, http://veron.typepad.com/files/tribune_081126_en.pdf.
Wall, L.D., (2009), “Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures”, ADBI Working Paper No. 176, December.
Woolford, I., (2001), “Macro-financial Stability and Macro-prudential Analysis”, Reserve Bank of New Zealand Bulletin, Vol. 64, No.3.
Yellen, J.L., (2010), “Macroprudential Supervision and Monetary Policy in the Post-Crisis World”, Speech at the Annual Meeting of the National Association for Business Economics, Denver, Colorado, October 11.
Zeti, A.A., (2005) Governor's Keynote Address at the Public-Private Dialogue Session of the 7th SEACEN Conference of Directors of Supervision of Asia Pacific Economies, Kuala Lumpur, Malaysia.