966
Serial number: 17/2013
Author(s): A. Zulfugarov
Language: Azerbaijani
Date: 2013
Abstract: The aim of this research is to survey the practices for regulation of lending institutions, to review the micro and macroprudential policy tools and components that are used for regulation of systematic risks and to assess the possibility to apply this experience in Azerbaijan.
Recent academic research shows that micro and macroprudential policy should be applied in tandem. These kind of tools and policies play a preventive role and ensure the stability of the financial system. Application of such analytical tools as stress-testing and early warning system will ensure more in depth and broad assessment of the situation in financial markets.
Moreover, micro and macroprudential policy should be applied with caution to be fine-tuned to the specifics of the local economic system and banking sector.
Key words: Microprudential, macroprudential, system risks
JEL classification: G32
