Validity of Macroprudential Policy: International Experiences and China's Practice
HUANG Ning;ZHENG Jinghui;The People's Bank Of China;
This article first expounds the theoretical meaning of macroprudential policy,focusing on the analysis of the international implementation experience. We conduct an in-depth study on the effectiveness of macro-prudential policies in our country. From the policy framework and institutional arrangements,China has initially established a regulatory framework of "monetary policy + macroprudentialism",in which financial stability and development commission at the State Council level has been established to to further enhance the authority and effectiveness of regulatory coordination. First,macro-prudential policy instruments are better than monetary policy in curbing credit over-growth. Second,monetary policy is more effective than macro-prudent policy instruments in curbing overinflation. Third,the combination of macro-prudential policies and monetary policies performed better than single policy tools. Fourth,Macro-prudential policy instruments have more effect on small and medium-sized banks than large banks,and the effect of non-listed banks on listing banks is better than that of listed banks. The continuous improvement of macroprudential assessment system(MPA) helps to consolidate the operating foundation of financial institutions,preventsystemic risks and promote the sound development of financial institutions. In the future,China's macro-prudential policies and practices should be improved from the following five aspects: strengthening policy adjustment,implementing differentiated regulation,improving institutional arrangements,strengthening forward-looking early intervention,and enriching policy tools.