Hong Kong’s Approach to Financial Stability
AbstractThis article summarizes the characteristics of Hong Kong’s approach to financial stability. It starts with an introduction to the macroeconomic policy setting and with a conceptual discussion on why financial cycles are likely to be an intrinsic feature of market economies. It then outlines the author’s interpretation of the regulatory and supervisory philosophy in Hong Kong and describes in more detail the framework and conduct of macroprudential policies regarding housing market risks. The financial policy framework in Hong Kong emphasizes the importance of limiting the degree of leverage on the balance sheets of both the private and public sectors so that households, firms, and the government can weather financial cycles. Hong Kong’s approach to financial stability therefore has two broad elements: first, macroprudential measures to lean against credit growth and the buildup of leverage in the upswing phases of financial cycles; and secondly, contingency planning and stress testing to ensure that participants in the financial system would be able to survive as going concerns in the downswing phases of financial cycles.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by International Journal of Central Banking in its journal International Journal of Central Banking.
Volume (Year): 9 (2013)
Issue (Month): 1 (March)
Find related papers by JEL classification:
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frank Leung & Kevin Chow & Gaofeng Han, 2008. "Long-term and Short-term Determinants of Property Prices in Hong Kong," Working Papers 0815, Hong Kong Monetary Authority.
- Abdullah Yavas, 2013. "Asset Price Bubbles and Monetary Policy," Working Papers 102013, Hong Kong Institute for Monetary Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Timo Laurmaa).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.