Central Banking for Financial Stability in Asia
AbstractA key lesson of the 2007–2009 global financial crisis was the importance of containing systemic financial risk and the need for a “macroprudential” approach to surveillance and regulation that can identify system-wide risks and take appropriate actions to maintain financial stability. By virtue of their overview of the economy and the financial system and their responsibility for payments and settlement systems, there is a broad consensus that central banks should play a key role in monitoring and regulating financial stability. Emerging economies face additional challenges because of their underdeveloped financial systems and vulnerability to volatile international capital flows, especially “sudden stops” or reversals of capital inflows. This paper reviews the recent literature on this topic and identifies relevant lessons for central banks, especially those in Asia’s emerging economies.
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Bibliographic InfoPaper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 377.
Length: 33 pages
Date of creation: 31 Aug 2012
Date of revision:
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central banking; central banks; financial stability; asia; surveillance and regulation; global financial crisis;
Other versions of this item:
- Masahiro Kawai & Peter J. Morgan, 2012. "Central Banking for Financial Stability in Asia," Finance Working Papers 23328, East Asian Bureau of Economic Research.
- Masahiro Kawai & Peter J. Morgan, 2012. "Central Banking for Financial Stability in Asia," Governance Working Papers 23328, East Asian Bureau of Economic Research.
- Masahiro Kawai & Peter J. Morgan, 2012. "Central Banking for Financial Stability in Asia," Development Economics Working Papers 23328, East Asian Bureau of Economic Research.
- Masahiro Kawai & Peter J. Morgan, 2012. "Central Banking for Financial Stability in Asia," Macroeconomics Working Papers 23328, East Asian Bureau of Economic Research.
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- F31 - International Economics - - International Finance - - - Foreign Exchange
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-09 (All new papers)
- NEP-CBA-2012-09-09 (Central Banking)
- NEP-CWA-2012-09-09 (Central & Western Asia)
- NEP-MAC-2012-09-09 (Macroeconomics)
- NEP-MON-2012-09-09 (Monetary Economics)
- NEP-RMG-2012-09-09 (Risk Management)
- NEP-SEA-2012-09-09 (South East Asia)
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