Nordic Regional Report: 2013 Cluster Consultation
IMF Staff Country Reports, September 5, 2013
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- Canonical URL
- Nordic Regional Report: 2013 Cluster Consultation
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Bibliographic details
- Published: September 5, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475589511.002
Summary
- This paper examines 2013 Cluster Consultation—a Nordic Regional IMF staff report.
- Denmark, Finland, Norway, and Sweden that form the Nordic region share a set of strong economic and social institutions and policies, with emphasis on education, high income equality, high employment, innovative and competitive business environment, etc.
- The IMF report suggests that strong national financial sector policies and regional cooperation would help mitigate common challenges and shared risks.
- Cooperative regional policies, such as introducing binding macroprudential minima and clear ex ante burden-sharing arrangements are expected to help limit the costs from any large bank failures.
Major themes and findings
- Shared strengths across Nordic countries: education, high income equality, high employment, innovative and competitive business environment.
- Financial sector focus:
- Importance of strong national financial sector policies.
- Benefits of regional cooperation to mitigate shared risks.
- Specific cooperative policy examples include introducing binding macroprudential minima and establishing clear ex ante burden-sharing arrangements.
- Objective: limit costs from any large bank failures through combined national and regional policy measures.
Policy recommendations
- Maintain and strengthen national financial sector policies tailored to each country’s circumstances.
- Pursue regional cooperation mechanisms to address cross-border financial risks.
- Implement binding macroprudential minima at the regional level.
- Establish clear ex ante burden-sharing arrangements to contain fiscal and systemic costs from large bank failures.
Subject classifications and keywords
- Subject: Banking, Commercial banks, Financial crises, Financial institutions, Housing, Housing prices, Mortgages, National accounts, Prices
- Keywords: authority, Baltics, bank, Commercial banks, country, covered bonds bond market, CR, debt, distressed bank, Global, host country decision, household debt, Housing, Housing prices, ISCR, Mortgages, risk weight