What are the key characteristics of macroprudential framework?
It pursues the following interlocking objectives: (1) increase the resilience of the financial system to aggregate shocks by building and releasing buffers that help to maintain the ability of the financial system to function effectively, even under adverse conditions; (2) contain the build-up of systemic …
What is the goal of macroprudential policy and an example of an actual macroprudential policy?
Macroprudential policies aim to reduce the financial system’s sensitivity to shocks by limiting the buildup of financial vulnerabilities. One example of a macroprudential policy is the higher capital charge applied to Global Systemically Important Banks (G-SIBs), banks that pose more risk to the system.
What policies does the IMF promote?
The International Monetary Fund (IMF) is an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
What are some of the major objectives of the IMF?
The main objectives of IMF, as noted in the Articles of Agreement, are as follows:
- (i) International Monetary Co-Operation:
- (ii) Ensure Exchange Stability:
- (iii) Balanced Growth of Trade:
- (iv) Eliminate Exchange Control:
- (v) Multilateral Trade and Payments:
- (vi) Balanced Growth:
- (vii) Correction of BOP Maladjustments:
What are the roles and functions of IMF?
The International Monetary Fund aims to reducing global poverty, encouraging international trade, and promoting financial stability and economic growth. The IMF has three main functions: overseeing economic development, lending, and capacity development.
What are the effective tools of fiscal policy?
The government possesses two major fiscal tools for influencing the economy. These tools can be divided into spending tools and revenue tools. Spending tools refer to the overall government spending. On the other hand, revenue tools refer to taxes collected by the government.
What is macroprudential framework?
It is now specifically understood to mean as addressing the build-up of systemic risks which in turn is defined as disruptions to the financial system that can adversely affect the real economy. Macroprudential policy is the means for mitigating these systemic risks.
What is the Council of Financial Regulators?
The Council of Financial Regulators (CFR) is the coordinating body for Australia’s main financial regulatory agencies. It is a non-statutory body whose role is to contribute to the efficiency and effectiveness of financial regulation and to promote stability of the Australian financial system.