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With a little help from my friends: why large financial spillovers require more international macroprudential policy coordination

Type
Speech
Subtype
BIS management speech
Date delivered
16 May 2018
Remarks by Mr Luiz Awazu Pereira da Silva, Deputy General Manager of the BIS, at the Joint BIS-PIIE Roundtable on "Global interdependence: rethinking international policy coordination with a special focus on macroprudential policies", Washington DC, 18 April 2018.

These remarks*: (1) take stock of existing analyses on spillovers and spillbacks and examine evidence about their measurement and transmission, including macroprudental spillovers and regulatory leakages; (2) showcase new empirical and theoretical contributions on the rationale and potential gains of international macroprudential policy coordination; (3) recall the existing mechanisms for international macroprudential policy coordination through regulatory standards and reciprocity principles; and (4) discuss, from a policy perspective, how to go further to strengthen international macroprudential policy coordination in a financially integrated world.

* These remarks are a summarised version of "Financial spillovers, spillbacks, and the scope for international macroprudential policy coordination", BIS Papers, no 97, April 2018.