Addressing Interconnectedness: Concepts and Prudential Tools
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This paper reviews tools used to identify and measure interconnectedness and raises the awareness of policymakers as to potential cross-sectional implications of prudential tools aimed at controlling interconnectedness. The paper examines two sets of tools—developed at the IMF and externally—to identify the implications of interconnectedness in systemic risk and how these tools have been applied in IMF surveillance. The paper then proposes a preliminary framework to analyze some key internationally-agreed-upon and national prudential tools and finds that while many prudential tools are effective in reducing interconnectedness, the interaction among these tools is far less clear cut.
Series:
Working Paper No. 2013/199
Subject:
Bank resolution framework Banking Countercyclical capital buffers Financial contagion Financial crises Financial regulation and supervision Financial sector policy and analysis Liquidity requirements Systemic risk
English
Publication Date:
September 26, 2013
ISBN/ISSN:
9781475531855/1018-5941
Stock No:
WPIEA2013199
Pages:
58
Please address any questions about this title to publications@imf.org