Macroprudential Tools and Policy Frameworks

Macroprudential policy is the targeted use of financial regulatory instruments to mitigate risks to the financial system as a whole, rather than focusing solely on individual institutions. This specialized course provides an in-depth exploration of the available **macroprudential toolkit**, its policy frameworks, and the complex governance challenges involved in its use. Participants will learn how to calibrate and activate tools such as countercyclical capital buffers (CCyB), loan-to-value (LTV) limits, and debt-to-income (DTI) ratios to curb excessive credit growth and mitigate asset price bubbles. The course emphasizes the institutional setup, decision-making processes, and the coordination needed with monetary and microprudential policy.