Financial Stability and Macroprudential Policy

This book offers an accessible introduction to financial stability and macroprudential policy with a particular focus on Europe. Covering economic, institutional and regulatory aspects, it is an essential read for professionals and scholars alike.

The first part explores the macroprudential mandate, emphasising the importance of monitoring the entire financial system. The second part introduces the fundamentals of macroprudential supervision and addresses various risk types and their assessment. The third part examines macroprudential policy in detail, covering the key players, institutions and tools used to enhance financial stability.

Ideal for professionals working in supervisory authorities, commercial banks and central banks, as well as for students of economics and supervisory studies, this book provides a solid foundation for understanding financial system stability and macroprudential policy.

Chapter 1. Fundamentals of the Macroprudential Mandate. - Part I: Foundations of Macroprudential Surveillance. - Chapter 2. Cyclical Vulnerabilities: The Build-up of Vulnerabilities over Time. - Chapter 3. Structural vulnerabilities: systemic importance, interconnectedness, and risk concentration. - Chapter 4. Resilience. - Chapter 5. Assessment of Risks to Financial Stability. - Part II: Macroprudential Policy. - Chapter 6. Objectives, Approaches, and Limitations of Macroprudential Policy. - Chapter 7. Macroprudential instruments. - Chapter 8. Institutions and Actors in the Field of Financial Stability. - Chapter 9. Crisis Management and Financial Safety Nets. - Chapter 10. Macroprudential policy in a monetary union.