10 research outputs found
Local Currency Bond Market Development in Sub-Saharan Africa: A Stock-Taking Exercise and Analysis of Key Drivers
Contribution of financial market segments at different stages of development: Transition, cohesion and mature economies compared
Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy
The Consequences of Post-Crisis Regulatory Architecture for Banks in Central Eastern Europe
Discussion Paper No. 2002/82 Capital-Account and Counter-Cyclical Prudential Regulations in Developing Countries
This paper explores the complementary use of two instruments to manage capital-account volatility in developing countries: capital-account regulations and counter-cyclical prudential regulation of domestic financial intermediaries. Capitalaccount regulations can provide useful instruments in terms of both improving debt profiles and facilitating the adoption of (possibly temporary) counter-cyclical macroeconomic policies. Prudential regulation and supervision should take into account not only the microeconomic risks, but also the macroeconomic risks associated with boom-bust cycles. It should thus introduce counter-cyclical elements into prudential regulation and supervision, together with strict rules to prevent currency mismatches and reduce maturity mismatches. These instruments should be seen as a complement to counter-cyclical macroeconomic policies and, certainly, neither of them can nullify the risks that pro-cyclical macroeconomic policies may generate