{ "title": "Reducing Risks in Asia with Macroprudential Policies", "publication": "IMF Blog, April 30, 2014", "sourceUrl": "https://www.imf.org/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies", "canonical": "https://www.imf.org/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies", "overlayPath": "/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies/index.md", "summary": "Booming real estate markets, rapid credit growth and—at least before the Fed’s tapering announcement last year—sustained capital inflows have raised financial stability challenges across many parts of Asia.", "sections": [ { "heading": "Context and challenges", "content": "- Booming real estate markets, rapid credit growth and—at least before the Fed’s tapering announcement last year—sustained capital inflows have raised financial stability challenges across many parts of Asia.\n- Policymakers have increasingly used macroprudential policies that address the stability of the financial system as a whole rather than that of individual institutions.\n- In some cases policymakers have also resorted to capital flow management measures to counter large capital inflows." }, { "heading": "Use of macroprudential policies in Asia", "content": "- Asia stands out for more extensive use of macroprudential measures than elsewhere, particularly housing-related measures.\n- Many economies in the region have been heavy users of caps on loan-to-value ratios (the ratio between the size of the mortgage loan and the value of the house being purchased).\n- Since 2000 tightening of loan-to-value ratios has occurred more than twice as often in Asia as it has in Central and Eastern Europe/Community of Independent States, advanced Europe, and North America.\n- Macroprudential policies were most heavily tightened in the pre‑crisis boom period during 2006–07, and then again after the crisis as capital flowed back into the region and asset prices soared.\n- Economies that experienced large capital inflows or housing and credit booms (Hong Kong SAR, Korea, Singapore, and Thailand) were the heaviest users.\n- Asian economies with relatively less open financial accounts have taken a smaller number of residency-based capital flow measures or actions to discourage transactions in foreign currency than countries in Central and Eastern Europe and Latin America." }, { "heading": "Empirical evidence and impacts", "content": "- New empirical evidence on 13 Asian economies since 2000 indicates the following effects of housing-related macroprudential instruments:\n - Caps on loan-to-value ratios and the taxation of housing transactions have helped lower credit growth.\n - These measures have slowed house price inflation.\n - These measures have dampened bank leverage (although the latter effect is fairly small).\n- No such effects are found for non-housing related macroprudential policies and capital flow measures in the empirical analysis presented; however, some non-housing measures may still have boosted resilience to shocks.\n- Example: Measures introduced in Korea in 2010 to discourage foreign currency transactions have been followed by a decline in banks’ short-term foreign currency borrowing, thus reducing their vulnerability to foreign funding shocks.\n- Overall assessment: while macroprudential policies are no substitute for warranted macroeconomic policy adjustment, they seem to have served the region well." }, { "heading": "Recalibrating macroprudential policies — considerations and recommendations", "content": "- Macroprudential policies were loosened in a counter-cyclical fashion during the 2008–09 global financial crisis.\n- More experience is needed on whether and how these instruments should be recalibrated as the financial cycle turns.\n- The main policymaker challenge: strike the right balance between preserving future resilience to shocks and averting asset price collapses and excessive deleveraging.\n- The rolling back of policies may depend on factors such as:\n - how acute is the downturn in the financial cycle, and\n - how strong are local balance sheets,\n - and may vary across different measures.\n- Specific policy implications suggested:\n - Accumulated capital buffers would typically be used to avoid a procyclical contraction in loan supply.\n - Widespread adoption across Asia of countercyclical capital requirements and dynamic provisioning in the future could be helpful to foster the buildup of buffers in the upward phase of the cycle.\n - In a downswing of the financial cycle, reserve requirements could also be lowered to release additional liquidity.\n - Whether policymakers should ease housing-related tools and measures to discourage foreign currency transactions is more controversial.\n - Where regulation is currently very tight, there may be a case for relaxing these instruments after assessing the soundness of banks’ and households’ balance sheets.\n\nSource: Reducing Risks in Asia with Macroprudential Policies, Edda Zoli, April 30, 2014.\n\n---\n\n Content in this bundle\n\n- 亚洲运用宏观审慎政策降低风险; iMFDirect博客; Edda Zoli\n - 亚洲运用宏观审慎政策降低风险; iMFDirect博客; Edda Zoli (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - 亚洲运用宏观审慎政策降低风险; iMFDirect博客; Edda Zoli (PDF){rel=\"external\" type=\"application/pdf\"}\n- マクロ・プルーデンス政策でアジアにおけるリスクを軽減; エッダ・ゾリ, iMFdirect ブログ 2014年4月30日掲載\n - マクロ・プルーデンス政策でアジアにおけるリスクを軽減; エッダ・ゾリ, iMFdirect ブログ 2014年4月30日掲載 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - マクロ・プルーデンス政策でアジアにおけるリスクを軽減; エッダ・ゾリ, iMFdirect ブログ 2014年4月30日掲載 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Regional Economic Outlook: Asia and Pacific — Executive Summary\n - Regional Economic Outlook: Asia and Pacific — Executive Summary (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Regional Economic Outlook: Asia and Pacific — Executive Summary (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- https://www.imf.org/wp-content/uploads/2014/04/figure-one.jpg\n\nSource: https://www.imf.org/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies" } ], "bullets": [ "[Markdown version](/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies/index.md)", "[Structured JSON version](/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies/index.json)", "[Bundle manifest](/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies/bundle-manifest.json)", "Authors: Edda Zoli", "Published: April 30, 2014", "Booming real estate markets, rapid credit growth and—at least before the Fed’s tapering announcement last year—sustained capital inflows have raised financial stability challenges across many parts of Asia.", "Policymakers have increasingly used macroprudential policies that address the stability of the financial system as a whole rather than that of individual institutions.", "In some cases policymakers have also resorted to capital flow management measures to counter large capital inflows.", "Asia stands out for more extensive use of macroprudential measures than elsewhere, particularly housing-related measures.", "Many economies in the region have been heavy users of caps on loan-to-value ratios (the ratio between the size of the mortgage loan and the value of the house being purchased).", "Since 2000 tightening of loan-to-value ratios has occurred more than twice as often in Asia as it has in Central and Eastern Europe/Community of Independent States, advanced Europe, and North America.", "Macroprudential policies were most heavily tightened in the pre‑crisis boom period during 2006–07, and then again after the crisis as capital flowed back into the region and asset prices soared.", "Economies that experienced large capital inflows or housing and credit booms (Hong Kong SAR, Korea, Singapore, and Thailand) were the heaviest users.", "Asian economies with relatively less open financial accounts have taken a smaller number of residency-based capital flow measures or actions to discourage transactions in foreign currency than countries in Central and Eastern Europe and Latin America.", "New empirical evidence on 13 Asian economies since 2000 indicates the following effects of housing-related macroprudential instruments:", "No such effects are found for non-housing related macroprudential policies and capital flow measures in the empirical analysis presented; however, some non-housing measures may still have boosted resilience to shocks.", "Example: Measures introduced in Korea in 2010 to discourage foreign currency transactions have been followed by a decline in banks’ short-term foreign currency borrowing, thus reducing their vulnerability to foreign funding shocks.", "Overall assessment: while macroprudential policies are no substitute for warranted macroeconomic policy adjustment, they seem to have served the region well.", "Macroprudential policies were loosened in a counter-cyclical fashion during the 2008–09 global financial crisis.", "More experience is needed on whether and how these instruments should be recalibrated as the financial cycle turns.", "The main policymaker challenge: strike the right balance between preserving future resilience to shocks and averting asset price collapses and excessive deleveraging.", "The rolling back of policies may depend on factors such as:", "Specific policy implications suggested:", "**亚洲运用宏观审慎政策降低风险; iMFDirect博客; Edda Zoli**", "**マクロ・プルーデンス政策でアジアにおけるリスクを軽減; エッダ・ゾリ, iMFdirect ブログ 2014年4月30日掲載**", "**Regional Economic Outlook: Asia and Pacific — Executive Summary**", "[https://www.imf.org/wp-content/uploads/2014/04/figure-one.jpg](https://www.imf.org/wp-content/uploads/2014/04/figure-one.jpg)" ], "related": [ { "title": "亚洲运用宏观审慎政策降低风险; iMFDirect博客; Edda Zoli", "role": "document", "sourceUrl": "http://www.imf.org/external/chinese/np/blog/2014/043014c.pdf", "summary": { "path": "/external/chinese/np/blog/2014/043014c.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/external/chinese/np/blog/2014/043014c.pdf", "mime": "application/pdf" } }, { "title": "マクロ・プルーデンス政策でアジアにおけるリスクを軽減; エッダ・ゾリ, iMFdirect ブログ 2014年4月30日掲載", "role": "document", "sourceUrl": "http://www.imf.org/external/japanese/np/blog/2014/043014j.pdf", "summary": { "path": "/external/japanese/np/blog/2014/043014j.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/external/japanese/np/blog/2014/043014j.pdf", "mime": "application/pdf" } }, { "title": "Regional Economic Outlook: Asia and Pacific — Executive Summary", "role": "document", "sourceUrl": "http://www.imf.org/external/pubs/ft/reo/2014/apd/eng/areo0414.pdf", "summary": { "path": "/external/pubs/ft/reo/2014/apd/eng/areo0414.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/external/pubs/ft/reo/2014/apd/eng/areo0414.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies/index.md", "json": "/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies/index.json", "bundleManifest": "/en/blogs/articles/2014/04/30/reducing-risks-in-asia-with-macroprudential-policies/bundle-manifest.json" }, "generatedAtUtc": "2026-08-28T18:35:38.983Z" }