The Macroprudential Policy Strategy in the Light of the Latest Global Financial Crisis
The Macroprudential Policy Strategy in the Light of the Latest Global Financial Crisis

Summary/Abstract: In a domestic and international environment marked by a high degree of uncertainty, only a coherent mix of macroeconomic, structural and macro-prudential policies can sustain the lasting growth path and to ensure price stability and financial stability. The purpose of our paper is to analyze the acroprudential policy strategy in the light of the latest global financial crisis, In order to ensure an adequate management of the imbalances to financial stability; an adequate macroprudential policy configuration is of prime importance. We highlight the particularities of macroprudential arrangements for safeguarding financial stability at European, and respectively national level. In order to reinforce financial system stability, the National Bank of Romania decided to pursue, aside from the EU-recommended intermediate macroprudential policy objectives, two other objectives: increase in financial intermediation and an improvement of financial inclusion. Our analysis shows that the banking system in Romania has an appropriate level of capitalisation, as highlighted by the Common Equity Tier 1 capital ratio which shows higher values than the combined buffer requirement applicable in 2016. The rest of the paper is organized as follows. Section 1 briefly surveys the major contributions of the literature review. Section 2 and 3 explain the particularities of macroprudential arrangements for safeguarding financial stability at European versus national level, while section 4 brings the main conclusions.

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