By José Viñals
When the global financial system was thrown into crisis, many policymakers were shocked to discover a gaping hole in their policy toolkit.
They have since made significant progress in developing macroprudential policy measures aimed at containing system-wide risks in the financial sector. Yet progress has been uneven. Greater efforts are needed to transform this policy patchwork into an effective crisis-prevention toolkit.
Given the enormous economic and human cost of the recent financial debacle, I strongly believe that we cannot afford to miss this opportunity for substantial reform. (more…)
Filed under: Financial Crisis, Financial regulation, Financial sector supervision, G-20, International Monetary Fund | Tagged: capital requirements, credit growth, crisis prevention, financial stability, global financial crisis, global financial system, loan-to-value ratio, macroprudential policies, macroprudential regulation, regulatory arbitrage, systemic risk | 9 Comments »