MAS published its approach to the macro-prudential policy in Singapore. MAS sets out the objectives, framework, and principles that guide the approach to macro-prudential policy, including its interaction with micro-prudential supervision and monetary policy. In its approach, MAS elaborates on the macro-prudential policy framework while laying out the principles that guide the macro-prudential policy approach and policy toolkit of MAS.
The MAS framework for macro-prudential policy involves the iterative processes of surveillance and risk identification, impact and vulnerability assessment, and policy response. If the MAS surveillance and impact assessments identify a material systemic risk that could impact the financial system or the real economy adversely, MAS will take policy action to remove or mitigate the risk, or build resilience against it. The macro-prudential policy approach of MAS can be characterized as pre-emptive, targeted, calibrated, and multi-pronged. In its approach, MAS also lists the policy tools, along with the particular systemic risk they assess. MAS takes a system-wide perspective in its macro-prudential surveillance efforts. It constantly monitors a broad suite of indicators to identify potential risks and how they may manifest. These indicators cover five broad sectors: banks, non-bank financial institutions, corporates, households, and the external sector. Linkages within and between these sectors are identified through network analyses of balance sheet variables and transaction flow data.
Keywords: Asia Pacific, Singapore, Banking, Macro-prudential Policy, Systemic Risk, CCyB, LTV, MAS
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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