Banking, credit and macro-prudential policy

When 16 November 2015 9:00 AM

Workshop: Banking, credit and macro-prudential policy: what can we learn from micro-data?

The recent financial crisis has brought to the fore concerns regarding the proper management of systemic risk and the appropriate mix of policies to ensure financial stability. Within this context, macro-prudential instruments have become an essential part of the toolkit of Central Banks. From a research perspective, there has been a steady increase in the volume of research which deals with measuring and testing the impact of macro-prudential policies. A vast majority of this research has been undertaken using aggregate data exploiting either cross-country variation or time-series variation for single countries. There has been much less research which has used micro data to learn lessons for the implementation and effectiveness of macro-prudential policies. Gaining insight from micro data is important in policy formation as many aspects of macro-prudential regulation may require tailoring to borrower-specific heterogeneity across the economy.