Macroprudential frameworks: objectives, decisions and policy interactions

This note discusses macroprudential frameworks in emerging market economies (EMEs) and the role that central banks play. It reviews how central banks organise themselves to promote financial stability. Much of the discussion is based on the replies to a questionnaire sent in late 2016 a group of EME central banks. Some conclusions are that about two thirds of the central banks surveyed have a financial stability mandate but not necessarily in the form of a quantitative goal. Respondent central banks have control over a large array of macroprudential tools. But in several countries, decision-making powers and control over instruments remain diffused across institutions. In such cases, policy coordination implementation tilts towards favouring the central bank’s role of ”primus inter pares”.