[New post] Back to the Future IV: challenges for financial stability policy in the next decade
BankUnderground posted: " Alina Barnett, Sinem Hacioglu Hoke and Simon Lloyd Since 2007, macroprudential policymakers have grappled with a broad set of vulnerabilities. While regulators cannot be sure what risks the next decade will feature, they can be sure that the s" Bank Underground
Alina Barnett, Sinem Hacioglu Hoke and Simon Lloyd
Since 2007, macroprudential policymakers have grappled with a broad set of vulnerabilities. While regulators cannot be sure what risks the next decade will feature, they can be sure that the set of issues will continuously evolve. In this post, we explore threetimely challenges that financial stability policymakers are likely to face in the coming years, including risks associated with: non-bank financial intermediation, cryptoassets and decentralised finance (DeFi), and climate change. These challenges have been noted by many, and are already stimulating development of macroprudential frameworks. But while some of this development can build on well-grounded principles for financial stability policy, other aspects are likely to come up against threetimeless challenges, requiring novel and innovative thinking to overcome.
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