International Conference on Eurasian Economies

International Conference on Eurasian Economies

20-22 September 2022 – Baku - AZERBAIJAN

Paper properties

Paper ID : 2563
Status : Paper published
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Ph.D. candidate Yağmur Rençber
Session : 3B Finans

The Contribution of Macro Prudential Policies to Country Economies in the Financial Stability Process
Makro İhtiyati Politikaların Ülke Ekonomilerine Finansal İstikrar Sürecindeki Katkısı

Abstract

After the global financial crisis, in addition to providing price stability, which was the primary objective of the Central Banks, the goal of maintaining financial stability has taken its place among the basic monetary policies all over the world. Because, with the effect of globalization, the aim of monetary policy to provide price stability alone is not enough to ensure sustainable growth and welfare. In this sense, macro prudential policies have been developed within the framework of Basel III, the basis of which is formed by BIS. These macro prudential policies are basically defined as precautionary policy tools that limit the disruption of financial services that create serious problems in the real economy by preventing all financial risks, whether systematic or unsystematic. The definition and scope of macro prudential policies will be discussed in the first part of the article. In the second part of the study, annual data will be presented within the framework of BIS on the scope and development of macro prudential policies implemented worldwide between 2000-2020. On the other hand, it is aimed to present a detailed analysis on the macro-prudential policies implemented in Turkey, which will include Central Bank data based on its development over the years. In the last section, it is aimed to provide macro-prudential policies accompanied by data, as well as its high role in determining systemic risks, and to present optimum policy recommendations that include monetary policy, fiscal policy, micro-prudential policies, competition policy and, when applied together, support the aim of financial stability.

JEL codes: E58, B26, E50

Rençber, Yağmur (2021). "The Contribution of Macro Prudential Policies to Country Economies in the Financial Stability Process" in Proceedings of International Conference of Eurasian Economies 2021, pp.214-223, Istanbul, TURKEY and ONLINE.

DOI: https://doi.org/10.36880/C13.02563

Full paper in PDF format.

Session 3B: Finans

Eurasian Economists Association Azerbaijan State University of Economics Beykent University Doğuş University Kyrgyzstan-Turkey Manas University