Macroprudential Indicators of Financial System Soundness
Occasional Papers, April 15, 2000
Source details
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- Macroprudential Indicators of Financial System Soundness
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Bibliographic details
- Authors: Paul Louis Ceriel Hilbers, Alfredo Mario Leone, Mahinder Singh Gill, Owen Evens
- Published: April 15, 2000
- Series: Occasional Papers
- DOI: https://doi.org/10.5089/9781557758910.084
Overview and purpose
- Occasional Paper by the Monetary and Exchange Affairs Department and the Statistics Department examining macroprudential indicators developed after the severe financial crises of the 1990s.
- Purpose: identify and assess financial sector vulnerabilities by establishing monitorable variables (macroprudential indicators) to evaluate strengths and weaknesses in financial institutions and to alert authorities of impending problems.
- Emphasis: indicators at both the level of aggregated financial institutions and at the macroeconomic level, noting that financial crises often occur when weaknesses are identified in both.
Scope and content
- Provides a breakdown and explanations of macroprudential indicators.
- Reviews theoretical and empirical work to date on these indicators.
- Includes work at other international and multilateral institutions and experiences of several national central banks and supervisory agencies.
- Intended as a reference source on indicators and issues related to their analysis, identification, measurement, and possible dissemination.
Key findings and analytical emphasis
- Macroprudential indicators encompass measures at aggregated financial-institution level and macroeconomic level.
- The paper synthesizes existing theoretical and empirical literature relevant to identifying vulnerabilities in the financial sector.
- Cross-institutional and cross-country experiences are used to inform indicator selection and interpretation.
Policy implications and uses
- Indicators are intended to alert authorities to impending problems and to help evaluate financial system health and stability.
- Relevant for surveillance, regulatory oversight, and decision-making by central banks and supervisory agencies.
- Discussion is likely to inform considerations around data dissemination standards and systemic risk monitoring.
Subjects and keywords
- Subjects: Banking, Capital adequacy requirements, Commercial banks, Economic sectors, Financial crises, Financial institutions, Financial regulation and supervision, Financial sector, Market risk
- Keywords: Capital adequacy requirements, Commercial banks, core MPIs, data dissemination standard, FBF1EF, Financial sector, Global, IMF surveillance, IMF surveillance process, market, Market risk, MPIs, OP, SDDS advantage, SDDS country, SDDS data category
International Monetary Fund — Macroprudential Indicators of Financial System Soundness (Occasional Paper No 2000/007), April 15, 2000