Ghosh, Swati R.Canuto, OtavianoCanuto, OtavianoGhosh, Swati R.2013-10-252013-10-252013-10-11978-1-4648-0002-310.1596/978-1-4648-0002-3https://hdl.handle.net/10986/16202The 2008 financial crisis has highlighted the challenges associated with global financial integration and emphasized the importance of macro financial linkages. In the financial sector, attention is being directed toward macro prudential regulations that are geared toward the stability of the financial system as a whole. The Third Basel Accord (Basel III) aims to dampen the pro-cyclicality of the financial sector and to reduce cross sectional systemic risks partly by introducing measures to address liquidity and issues of banks being too big to fail. In the macro arena, the facts that price stability was not sufficient to guarantee macroeconomic stability and that financial imbalances developed despite low inflation and small output gaps have highlighted the need for additional tools (macro prudential policies) to complement monetary policy in countercyclical management. Emerging markets face different conditions and have key structural features that can have a bearing on the relevance and efficacy of the measures. The chapters in this volume discuss the challenges of dealing with macro financial linkages and explore the policy toolkit available for dealing with systemic risks with particular reference to emerging markets. This report is organized as follows: chapter one is adapting macro prudential approaches to emerging and developing economies; chapter two is adapting micro prudential regulation for emerging markets; chapter three presents capital flow volatility and systemic risk in emerging markets: the policy toolkit; chapter four presents monetary policy and macro prudential regulation: whither emerging markets; chapter five deals with macro prudential policies to mitigate financial vulnerabilities in emerging markets; chapter six presents sailing through the global financial storm; and chapter seven presents operation of macro prudential policy measures.en-USCC BY 3.0 IGOaffiliatearbitrageAsset Classasset classesasset holdingsAsset Priceasset pricesasset salesasset valueasset-backed securitiesbad debtBalance Sheetbalance sheetsbank assetsbank balance sheetsBank BranchesBank EquityBank for International Settlementsbank holdingbank holding companiesBank IndonesiaBank LendingBank LoansBank of EnglandBank of JapanBank of Koreabank portfoliosbanking assetsbanking regulationBanking Sectorbanking supervisionbanking systembanking systemsBankruptcyBanksbasis pointsbondbond credit ratingboom-bust cyclesBorrowerbusiness cycleBusiness CyclesCapital AdequacyCapital FlowCapital Flowscapital gainsCapital InflowCapital InflowsCapital Marketscapital requirementCapital RequirementsCDsCentral Bankingcentral bankscertificates of depositcollateralCommercial Bankscommercial paperConsumer LoansCorporate DebtCorporate GovernanceCountry RiskCredit DefaultCredit Default Swapcredit growthCredit Marketcredit unionscreditorcreditorsCurrencyCurrency CrisisDebenturesDebtdebt managementdebt obligationdebt overhangdebt restructuringDebtsDepositdepositorsDepositsDerivativesdeveloping countriesDevelopment Bankdomestic creditDomestic Currencydomestic interest rateEconomicsemerging economiesEmerging Marketemerging market economiesEmerging MarketsemploymentEquilibrium modelsEquity Financingequity fundsEscrowEuropean Central BankExchange CommissionExchange Rateexternalitiesfinancial assetsFinancial CapitalFinancial CrisesFinancial CrisisFinancial DevelopmentFinancial Distressfinancial flowsFinancial InstabilityFinancial Institutionfinancial institutionsFinancial Integrationfinancial marketfinancial marketsFinancial RegulationFinancial Servicesfinancial stabilityfinancial stressFinancial StudiesFinancial Systemfinancial systemsFiscal PolicyForeign AssetsForeign BankForeign Banksforeign currencyForeign Debtforeign direct investmentForeign ExchangeForeign Exchange TransactionsForeign Inflowsglobal economyGlobal Financegross domestic producthedge fundsholdinghome equityhousehold wealthHousingHousing Pricesincome growthInflationinformation disclosureinsuranceinterbank marketsInterest RatesInternational BankInternational FinanceInternational Financial Contagioninternational marketsinvestment banksinvestment vehiclesinvestor basesinvestor confidenceline of creditLiquidityLiquidity RatioloanLoanable Fundslocal lendersmacroeconomic fluctuationMacroeconomic Policiesmacroeconomic policymacroeconomic stabilitymacroeconomicsMarket disciplinemarket failuresmarket pricesmaturitiesMaturityMaturity Datematurity transformationMonetary Fundmonetary policiesMonetary Policymoney marketmoney-marketMortgageMortgage FinanceMortgage Loansmortgage-backed securityNational Securitynegative shocknonbank financial institutionsnonperforming loanNPLOutput Lossespayment systempenaltiesPolicy ResponsesPortfolioportfolio choicePortfolio Managementpresent valuePrice Changesprice stabilityPrivate CapitalPrivate Capital InflowPrivate Capital InflowsPrivate Equityprobability of defaultprofitabilityPrudential RegulationPrudential Regulationsreal sectorregulatory forbearanceReservereserve requirementsreturnreturn on equityrisk takingsavingssavings banksSecuritiessovereign ratingssubnational financesubsidiariessubsidiarysurchargesSystemic RiskTaxtime depositstransparencyType of Investorvalue of assetswithdrawalwithdrawal of fundsWorld Bank10.1596/978-1-4648-0002-3