المستخلص: |
The main lessons which were learned from the global financial crisis in 2008 is that the financial stability at the individual level of financial institutions is not sufficient to achieve financial stability at the macro level, because of the existence of the so-called systemic risk to the financial system as a whole. Hence, the importance of the Macro prudential policy which aimed at reducing the systemic risks and strengthening the financial system’s ability to withstand the shocks and to reduce imbalances as well as settleming them , without preventing the financial intermediation process crashes and ensuring that savings are channeled to finance viable investment opportunities. Assigning the responsibility of the Macroprudential policy to the central is considered reasonable choice because it would allow countries to benefit from the central banks’ expertise in assessing macroeconomic risk and financial risks assessment and it puts tough limits on the overall safety precautions in the hands of apolitically independent institution. But mandating of the central bank the responsibility for monetary policy and Macroprudential policy at the same time may lead to conflict between the main objective of monetary policy that’s price stability and the objective of financial stability, thus the central bank will find itself in conflict about the goal that must be achieved, which in turn affects the Independence of the Central Bank.
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