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What Role, If Any, Can Market Discipline Play In Supporting Macroprudential Policy?

In: Macroprudential Regulatory Policies The New Road to Financial Stability?

Author

Listed:
  • María J. Nieto

    (Banco de España, Spain)

Abstract

The following sections are included:IntroductionEffectiveness of Market Discipline in Its Supporting Role of Macroprudential Policy: Preconditions for Effective Market DisciplineAdequate and timely information on financial institutions' risk profilesFinancial institutions' creditors must consider themselves at risk and the reaction to market signals needs to be observableBalance Sheet and Market Indicators in Macroprudential Policy: The Relevance of Market DisciplineMarket prices and balance sheet indicators as measuring tools of systemic importanceMarket prices and balance sheet indicators of financial instabilityPolicy ConclusionsReferencesAnnex 1: List of EU banks with CDS quoted in the market (September 2010 Source: Dealogic)

Suggested Citation

  • María J. Nieto, 2011. "What Role, If Any, Can Market Discipline Play In Supporting Macroprudential Policy?," World Scientific Book Chapters, in: Stijn Claessens & Douglas D Evanoff & George G Kaufman & Laura E Kodres (ed.), Macroprudential Regulatory Policies The New Road to Financial Stability?, chapter 20, pages 331-353, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789814360678_0020
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    Cited by:

    1. Maria J. Nieto & Gillian G. Garcia, 2012. "The insufficiency of traditional safety nets: what bank resolution fund for Europe?," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 20(2), pages 116-146, May.

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