Design, Institutional Arrangement and Implementation of Macro-Prudential Framework

Abstract

The paper says that a sound and well-functioning financial system is viewed as compromising three pillars that are necessary to support orderly financial development and sustained financial stability. It enumerates the three (3) pillars as including: • Macro-prudential surveillance and financial stability analysis; • Financial system supervision and regulation to help manage the risks and vulnerabilities protect market integrity and good governance of financial institutions'; and • Financial system infrastructure including: legal infrastructure for finance; systemic liquidity infrastructure; and transparency, governance and information infrastructure.