Macroprudential Policies for a Resource Rich Economy The Case of Mongolia / Rodolfo Maino, Patrick Imam, Yasuhisa Ojima.

Format:

Book

Government document

Author/Creator:

Maino, Rodolfo.

Contributor:

Imam, Patrick.

Ojima, Yasuhisa.

International Monetary Fund. Asia and Pacific Department.

Series:

IMF Working Papers; Working Paper ; No. 2013/018

IMF Working Papers

Language:

English

Subjects (All):

Banks and banking--Mongolia--Evaluation.

Banks and banking.

Banks and banking--State supervision--Mongolia.

Financial institutions--Mongolia--Evaluation.

Financial institutions.

Financial institutions--State supervision--Mongolia.

Mongolia--Economic policy.

Mongolia.

Physical Description:

1 online resource (48 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Language Note:

English

Summary:

This paper explores the extent to which macroprudential tools can be used to manage banking sector risks in Mongolia, a commodity producing country exposed to both procyclical and cross-sectional financial sector risks. Loose fiscal policy, rising credit activity, and heightened risk appetite—attributable to the commodity boom—are fuelling price volatility in asset markets, posing significant risks to financial stability if left unchecked. Rising interconnectedness, potential increase in dollarization and concentrated exposures are compounding those risks. Macroprudential tools can complement fiscal and monetary policy adjustments to avoid the buildup of vulnerabilities in the banking sector.

Contents:

Cover; Contents; I. Introduction; II. The Mongolian Context; Figures; 1. Output, Inflation, and Capital Flows; 2. Financial Intermediation; 3. Banking Soundness Map; III. Macro-Financial Linkages in Mongolia; A. Financial Stability Risk in Commodity-Producing Countries; 4. Natural Resources Giant; Boxes; 1. The Effects of Two Large Mining Projects; B. Overview of Risks in the Mongolian Financial System; 5. Impulse Response Functions; Tables; 1. Comparison of Macroprudential and Microprudential Regulation; 2. Policy Rate Pass-Through; C. Pro-Cyclical Systemic Risks

6. Time-Series Systemic RiskD. Cross-Sectional Systemic Risks; 7. Residential Mortgage Loan; 8. Cross-Sectional Systemic Risk; IV. Macroprudential Institutional Framework for Mongolia; A. Models Available; 3. Models of Macroprudential Institutions; B. Key Drivers for Effective Macroprudential Policy Arrangements; 9. Criteria for Effectiveness of Macroprudential Institutional Model; C. Way Forward for the Macroprudential Institution; 2. Monetary Policy Committee and Financial Stability Committee: Similarities and Differences; V. Macroprudential Instruments for Mongolia

A. Dampening Procyclicality4. Classification of Macroprudential Tools; 10. Simulating Dynamic Provisioning in Mongolia; B. Reducing Cross-Sectional Systemic Risk; 5. Dynamic Provisioning: A Vector Error Correction Model; 11. Interconnectedness; 12. Dollarization; C. Discretionary versus Automatic Measures; VI. Macroprudential and Monetary Policies: A Caveat; VII. Concluding Remarks; Appendix; References

Notes:

"Asia and Pacific Department."

"January 2013."

Includes bibliographical references.

Description based on print version record.

ISBN:

9781475590579

1475590571

9781475588613

1475588615

9781299264571

1299264573

9781475515534

1475515537