lecture 8 macroprudential policies Flashcards by ben moulds

Q

what occurs to risk during economic booms?

A

During economic booms, credit grows faster, leading to
the accumulation of risk

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Q

what occurs to risk during recession?

A

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Q

what is the advantage of macroprudential policy?

A

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Q

A

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Q

what occurs to risk during a recession?

A

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Q

what is the advantage of macroprudential policy?

A

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Q

what occurs to credit growth across the business cycle?

A

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Q

what are the fiscal cosys?

A

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Q

what are the aims of macroprudential policies?

A

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Q

what is used by firms as collateraln for borrowing?

A

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Q

what is the relationship of risk and the target rate?

A

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Q

what is the relationship between credit growth and the interest rate?

A

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Q

what is lean against the wind policies?

A

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Q

Should monetary policy play a more active role in addressing financial stability risks?

A

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Q

what are the negative externalities in the financial sector?

A

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Q

what are examples of macroprudential policies?

A

Q

what is the objective of macroprudential policy?

A

Objective to reduce the risk of FI

Q

what does macroprudential policy do?

A

To increase lending (may contradict to financial
stability goals

Q

what are the tools of macroprudential policy?

A

Q

what is the purpose of supervision and examination?

A

Q

what is the bank for international settlements?

A

Q

whay is basel 2?

A

Q

what was the purpose of basel 2?

A

Q

what is basel 3?

A

what are the assets and liabilities of the banks balance sheet?

what is the capital ratio formula??

what is the objective of the liquidity coverage ratio?

how will the LCR improve the banking sectors ability to absorb shocks?

what is the formula for the liquidity coverage ratio?

how does the LCR affect bank solvency?

what is the formula for the net stable fund ratio?

what is the effect of the net stable fund ratio?

what is the effect of LCR onliquidity risk?

what is the effect of LCR om solvency risk?