Financial Stability:Designing and Implementing.Macroprudential Policy

The financial crisis showed emphatically that systemic risks to the economy cannot be reliably mitigated by concentrating regulatory focus on individual financial institutions. The Basel Committee has responded with the Basel III accord, which was ratified by the G20 at Seoul in November 2010. The new measures, which incorporate micro-level requirements and a macroprudential emphasis on supervision, have been introduced to provide support to a primary discourse promoting the flattening of economic cycles and the elimination of systemic risk. Policymakers have begun to assemble the macroprudential toolkit, developing the expertise and resources required for this new approach to financial stability. Yet many practical issues remain: which policies to implement and how? What will their impact be? How will the new framework affect existing policymaking? How will it reshape the contours of the financial landscape more broadly? This interactive four-day seminar is designed to equip participants to meet these challenges.