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Macroprudential policy - aim, instruments and institutional architecture (Polityka ostroznosciowa w ujêciu makro - cel, instrumenty i architektura instytucjonalna)

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  • Malgorzata Olszak

    (Katedra Systemow Finansowych Gospodarki, Wydzial Zarzadzania, Uniwersytet Warszawski)

Abstract

The article attempts to present key elements of macroprudential policy framework of the state. The objective of macroprudential policy is to maintain financial stability, with the main focus on financial sector. This goal may be achieved by reducing the systemic risk. Analysis of systemic risk should be carried out from two distinct perspectives – time dimension and cross-section dimension. Measurement, assessment and monitoring of systemic risk may be conducted with the use of risk warnings as well as statistical tools. Macroprudential instruments aimed at limitation of systemic risk include tools traditionally used for microprudential purposes and newly invented measures. The elements of effective macroprudential policy institutional design include: (1) definition of a macroprudential authority; (2) giving powers to the authority; (3) ensuring accountability of the macroprudential authority as well as its transparency.

Suggested Citation

  • Malgorzata Olszak, 2012. "Macroprudential policy - aim, instruments and institutional architecture (Polityka ostroznosciowa w ujêciu makro - cel, instrumenty i architektura instytucjonalna)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 10(39), pages 7-32.
    • Handle: RePEc:sgm:pzwzuw:v:10:i:39:y:2012:p:7-32
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