STRENGTHENING MACROPRUDENTIAL POLICIES IN EMERGING ASIA : adapting to green goals and fintech.

Foreword
Acknowledgements
Table of contents
Executive summary
	Macroprudential policy in Emerging Asia at a glance: Recent developments and challenges
	Green goals and macroprudential policy in Emerging Asia: Promoting climate resilience and financial stability
	Fintech and macroprudential policy in Emerging Asia: Preparing for the digital age
Overview: Strengthening macroprudential policies to adopt to green goals and Fintech in Emerging Asia
	Chapter 1: Macroprudential policy in Emerging Asia at a glance:  Recent developments and challenges
		Macroprudential policy: Country experiences
		Institutional framework of macroprudential policy and financial structures
		Macroprudential policy challenges and implications: from interactions with other policies to the implications of COVID-19
	Chapter 2: Green goals and macroprudential policy in Emerging Asia: Promoting climate resilience and financial stability
		Risks related to climate change could destabilise the financial sector
		Macroprudential frameworks could be enhanced to support the green transition
		Integration of risks related to climate change into macroprudential stress tests
		Existing macroprudential policy instruments could be amended to support green finance
		The development of a green taxonomy is a prerequisite for effective green macroprudential policy
	Chapter 3: Fintech and macroprudential policy in Emerging Asia: Preparing for the digital age
		Credit provision through Fintech is growing in Emerging Asia
		Opportunities for financial stability associated with Fintech
		Key systemic risks associated with Fintech
		How macroprudential policies can address risks associated with Fintech
	References
1 Macroprudential policy in Emerging Asia: Recent developments and challenges
	Introduction
	Macroprudential policy: Tools and frameworks
		Macroprudential policy as a complement to microprudential policy
		Developments in macroprudential policy implementation in Emerging Asia
		Evidence of the economic impact of macroprudential policies
		Evidence of the impact of macroprudential policies in Emerging Asian economies
	Macroprudential policy: Country experiences
		Country experiences with minimum capital requirements and capital buffers
		Country experiences with macroprudential policies targeting the leverage of banks
		National experiences with macroprudential policy targeting the liquidity of banks, foreign exchange exposure, and currency mismatches
		National experiences with borrower-based measures and other lending restrictions
		Country experiences with miscellaneous macroprudential policies
	Macroprudential policy challenges and implications
		The difficulty of measuring a country’s macroprudential stance
		Interaction between macroprudential and monetary policies
		Macroprudential policy must better account for increasing interconnections between banks and non-bank financial intermediaries
			Overview of shock transmission mechanisms within the financial sector
			Macroprudential policies need to effectively address contagion risks within the financial system
		The cross-border spillover effects of macroprudential policy
		Moral hazard
			Policies to address the issue of moral hazard
	Macroprudential policy during major external shocks: Implications  for the COVID-19 pandemic
		Macroprudential loosening may be warranted during times of economic turmoil
		The COVID-19 crisis has highlighted the vulnerabilities of non-bank financial intermediaries
		Macroprudential policy should be able to tackle potentially destabilising capital flows
		Regional and international co-operation will be important post-COVID-19
	Conclusions
	References
	Further reading
	Notes
2 Green goals and macroprudential policy: Promoting climate resilience and financial stability
	Introduction
	Risks related to climate change could destabilise the financial sector
		Central banks’ mandates do not explicitly embed objectives related to climate change
		Physical and transition risks related to climate change
		The measurement of risks related to climate change poses various methodological challenges
	Some current macroprudential requirements may discourage investment  in low-carbon instruments
	Macroprudential framework could be enhanced to support the green transition
		Integration of risks related to climate change into macroprudential stress tests
		Existing macroprudential policy instruments could be amended to support green finance
		Examples of policy initiatives to promote the transition to a low-carbon economy
		The development of a green taxonomy is a prerequisite for effective green macroprudential policy
	Conclusion
	References
3 Fintech and macroprudential policy in Emerging Asia: Preparing for the digital era
	Introduction
	Business areas of Fintech in Emerging Asia
		Credit provision through Fintech is growing in Emerging Asia
		Fintech offers an avenue for improving the efficiency of payments and settlements
		Personal finance and wealth management may become more accessible due to Fintech
		Fintech also offers scope to improve the provision of other financial services
	Opportunities for financial stability associated with Fintech
		Fintech may foster financial stability through decentralisation and diversification
		Efficiency gains from Fintech could make the financial system more robust
	Key systemic risks associated with Fintech
	How macroprudential policies can address the risks associated with Fintech
		Current banking regulations should be adjusted to account for Fintech’s business models
		P2P lending platforms should be regulated in order to avoid excessive credit growth and risk-taking
		Risk-retention standards could be used to improve incentives for originate-to-distribute platforms
		Using an entity-based approach to regulate BigTech
		Regulatory sandboxes are used across Emerging Asia to allow for safe financial innovation
		Co-ordinating the macroprudential regulation of Fintech to create a level playing field
	Conclusion
	References
	Further reading