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Allocating macro-prudential powers

Author

Listed:
  • Daniel Gros
  • Sam Langfield
  • Marco Pagano
  • Dirk Schoenmaker

Abstract

Monetary, macro-prudential and micro-prudential policies are intimately linked. The macroprudential authority should be allocated to the body where the overall balance of synergies (between policy objectives) over conflicts and the required expertise are the largest. This report reviews the pros and cons of the four institutional models for the allocation of macro-prudential powers: (1) the government, (2) the central bank, (3) the financial authority and (4) a committee with representatives from these three bodies. JEL Classification: G28

Suggested Citation

  • Daniel Gros & Sam Langfield & Marco Pagano & Dirk Schoenmaker, 2014. "Allocating macro-prudential powers," Report of the Advisory Scientific Committee 5, European Systemic Risk Board.
    • Handle: RePEc:srk:srkasc:20145
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    File URL: https://www.esrb.europa.eu/pub/pdf/asc/Reports_ASC_5_1411.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Imola Drigă, 2018. "Systemic Risk and Macroprudential Policy in the Banking Sector," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 18(2), pages 21-28.

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    More about this item

    Keywords

    macroprudential regulation; economic policy; governance;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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