Cover IMF Working Papers
Responsibility of Central Banks for Stability in Financial Markets
Author: Mr. Garry J. Schinasi
Series:
IMF Working Papers
Volume/Issue:
Volume 2003: Issue 121
Language:
English
Publication Date:
01 Jun 2003
DOI:
https://doi.org/10.5089/9781451854404.001
ISBN:
9781451854404
ISSN:
1018-5941
Pages:
19
Keywords:
WP; financial system; central bank money; banking supervision; ECB regulation; market discipline; monetary policy; financial stability; central banking; financial crises management; ECB statute; market surveillance; banking policy view; conceived central bank; market stability; Financial sector stability; Bank supervision; Central bank mandate; Monetary base; Europe; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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What is the role of central banks in ensuring financial stability? This paper addresses this controversial subject, in part by drawing on the experiences in Europe, Japan, and the United States, and by examining four questions. What is meant by financial stability? Do central banks have a natural role in ensuring financial stability? What does a central bank need to execute this role effectively? How far have central banks actually gone in safeguarding financial stability? The experience drawn on in the paper suggest that central banks: have a natural role to play; at times may require supervisory information to execute this natural role; and have incurred risks to their balance sheets to ensure financial stability.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund