MAS Publishes Its Approach to Macro-Prudential Policy
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
Previous Article
ECB Opinion on the CBM Supervision of Credit Reference AgenciesRelated Insights
News
OFR Adopts Data Collection Rule on Centrally Cleared Repo TransactionsOFR adopted a final rule to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo) market.
February 20, 2019
WebPage
Regulatory News
|
News
FHFA Finalizes Rule on Federal Home Loan Bank Capital RequirementsFHFA published, in Federal Register, the final rule to adopt, as its own, portions of the regulations of the Federal Housing Finance Board pertaining to the capital requirements for the Federal Home Loan Banks.
February 20, 2019
WebPage
Regulatory News
|
News
SRB Publishes Framework for Performing Valuations in ResolutionThe framework provides independent valuers and the general public with an indication of the expectations of SRB on the principles and methodologies for valuation reports, as set out in the legal framework.
February 19, 2019
WebPage
Regulatory News
|
News
US Agencies Extend Consultation Period for the Proposed SA-CCRUS Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.
February 18, 2019
WebPage
Regulatory News
|
News
FED Extends Consultation Period for Stress Testing RuleFED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.
February 15, 2019
WebPage
Regulatory News
|
News
EBA Single Rulebook Q&A: Third Update for February 2019EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.
February 15, 2019
WebPage
Regulatory News
|
News
SEC Proposes Rule on Risk Mitigation Techniques for Uncleared SBSSEC proposed a rule that would require the application of specific risk-mitigation techniques to portfolios of security-based swaps (SBS) that are not submitted for clearing.
February 15, 2019
WebPage
Regulatory News
|
News
FSB Report Examines Financial Stability Implications of FintechFSB published a report that assesses fintech-related market developments and their potential implications for financial stability.
February 14, 2019
WebPage
Regulatory News
|
News
US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECLUS Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.
February 14, 2019
WebPage
Regulatory News
|
News
FASB Proposes Taxonomy Improvements for the Credit Losses StandardFASB proposed the taxonomy improvements for the proposed Accounting Standards Updates on Targeted Transition Relief for Topic 326 (Financial Instruments—Credit Losses) and Topic 805 (on Business Combinations—Revenue from Contracts with Customers).
February 14, 2019
WebPage
Regulatory News
|