## IMF, FSB and BIS publish Elements of Effective Macroprudential Policies

_IMF News, August 31, 2016_

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**Canonical URL:** [IMF, FSB and BIS publish Elements of Effective Macroprudential Policies](https://www.imf.org/en/news/articles/2016/08/30/pr16386-imf-fsb-bis-publish-elements-of-effective-macroprudential-policies)

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## Bibliographic details
- Published: August 31, 2016

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### Overview
- Publication released on August 31, 2016.
- Press Release No. 16/386.
- Joint publication by the International Monetary Fund (IMF), Financial Stability Board (FSB) and Bank for International Settlements (BIS).
- Responds to a G20 request and will be presented to the G20 Leaders’ Summit in Hangzhou.
- Press contact: PRESS OFFICER: Randa Elnagar; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.

### Purpose and context
- Takes stock of international experience since the global financial crisis in developing and implementing macroprudential policies.
- Responds to a G20 request in 2010 for the three organisations to report on progress; the three organisations produced a progress report on Macroprudential Policy Tools and Frameworks in 2011.
- Notes that many countries have introduced frameworks and tools aimed at limiting systemic risks that could otherwise disrupt the provision of financial services and damage the real economy.

### Main findings and observations
- Experience with macroprudential policy is growing and is complemented by an increasing body of empirical research on the effectiveness of macroprudential tools.
- Evidence remains tentative because the experience does not yet span a full financial cycle.
- “The wide range of institutional arrangements and policies being adopted across countries suggest that there is no ‘one-size-fits-all’. Nonetheless, accumulated experience highlights – and this paper documents – a number of elements that have been found useful for macroprudential policy making,” the publication says.

### Elements found useful for macroprudential policymaking (as documented)
- A clear mandate that forms the basis for assigning responsibility for taking macroprudential policy decisions.
- Adequate institutional foundations for macroprudential policy frameworks. Many of the observed designs give the main mandate to an influential body with a broad view of the entire financial system.
- Well-defined objectives and powers that can foster the ability and willingness to act.
- Transparency and accountability mechanisms to establish legitimacy and create commitment to take action.
- Measures to promote cooperation and information-sharing between domestic authorities.
- A comprehensive framework for analysing and monitoring systemic risk as well as efforts to close information gaps.
- A broad range of policy tools to address systemic risk over time and from across the financial system.
- The ability to calibrate policy responses to risks, including by considering the costs and benefits, addressing any leakages, and evaluating responses. In financially integrated economies, this includes assessing potential cross-border effects.

### Additional contents of the document
- Some data on the use of macroprudential tools.
- Illustrative examples of institutional models for macroprudential policymaking.
- A brief summary of some of the empirical literature on the effectiveness of macroprudential tools.

### Notes to editors
- The work of the IMF, FSB and BIS in this area responds to a G20 request in 2010 for the three organisations to report on progress achieved in this area.
- The three organisations produced a progress report on Macroprudential Policy Tools and Frameworks in 2011 which highlighted the need for further analysis on macroprudential tools.
- For further information on the BIS, visit www.bis.org.
- For further information on the FSB, visit www.fsb.org.
- For further information on the IMF, visit www.imf.org.
- For further information on the IMF and the G20, visit www.imf.org/external/np/g20/.

*Source: IMF, FSB and BIS press release, Press Release No. 16/386, August 31, 2016.*

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## Content in this bundle

- [083116 (PDF)](/external/np/g20/pdf/083116.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/news/articles/2016/08/30/pr16386-imf-fsb-bis-publish-elements-of-effective-macroprudential-policies_