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

Abstract
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
Table Of 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
Language
eng
Literary Form
non fiction
Note
"Asia and Pacific Department."
Physical Description
1 online resource (48 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781475588613

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