FSB, IMF and BIS Issue Progess Report to G20 on Macroprudential Policy Tools and Frameworks
October 27, 2011
At the Seoul 2010 summit, G20 leaders called on the FSB, IMF and BIS to carry out further research on macroprudential policy. This report sets out the progress in implementing macroprudential policy framework in three main areas: (i) advances in identifying and monitoring systemic financial risk, (ii) designating and calibrating instruments for macroprudential purposes and (iii) building institutional and governance arrangements in the domestic and regional context.
The overall conclusion of the report is that effective macroprudential frameworks depend on institutional arrangements and governance structures which can mobilise the right tools to limit systemic risk and ensure that policy makers' objectives are met.