Policies to mitigate procyclicality /

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Bibliographic Details
Imprint:	[Washington, D.C.] : International Monetary Fund, 2009.
Description:	1 online resource (25 pages)
Language:	English
Series:	IMF staff position note ; SPN/09/09 IMF staff position note ; SPN/09/09.
Subject:	Business cycles. Financial institutions -- State supervision. Credit. Risk management. Liquidity (Economics) Bank capital. Bank capital. Business cycles. Credit. Financial institutions -- State supervision. Liquidity (Economics) Risk management.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12500153

Hidden Bibliographic Details
Other authors / contributors:	Andritzky, Jochen R., author. International Monetary Fund. Monetary and Capital Markets Department. International Monetary Fund.
ISBN:	9781589068483 1589068483 1462340083 9781462340088 1451987528 9781451987522 1462370713 9781462370719
Notes:	Title from PDF title page (IMF Web site, viewed Apr. 3, 2012). "Prepared by the Monetary and Capital Markets Department." "May 7, 2009." Includes bibliographical references. English.
Summary:	The present crisis has focused attention on how procyclicality in the financial system can have outsized effects. This paper examines the reasons for this, specifically focusing on regulations or market practices that can accentuate economic cycles. In this light, the paper thus discusses the role of private sector risk management practices (including liquidity risk management), compensation practices, capital adequacy requirements and provisioning rules, deposit insurance regimes, and monetary policy actions. While recognizing various practical limitations, new policy responses are identified that could help to mitigate procyclicality.

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