The Role of Macro-Prudential Policies in the Boom and Adjustment Phase of the Credit Cycle in Estonia
The Estonian economy experienced an unusually long business and credit cycle during the first decade of the 21st century. The magnitude of the cycle tested what can be achieved by traditional policy tools and the limits of macro-prudential policies...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005144403 http://hdl.handle.net/10986/3599 |
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okr-10986-3599 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGGREGATE DEMAND ARBITRAGE ASSET PRICES ASSET TRANSFERS BALANCE SHEET BANK LENDING BANKING SECTOR BANKING SERVICES BANKING SYSTEM BASIS POINTS BORROWER BORROWING BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENT CAPITAL BASE CAPITAL MOVEMENTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS COLLATERAL CONSOLIDATION CONSUMER CREDIT CONSUMER LOANS CONSUMER PROTECTION CONTINGENT LIABILITIES CONVENTIONAL MORTGAGE CORE BUSINESS CORPORATE FINANCING CREDIT EXPANSION CREDIT GROWTH CREDIT LOSSES CREDIT MARKET CREDIT PRACTICES CREDIT QUALITY CREDIT RISKS CROSS-BORDER COOPERATION CROSS-BORDER ISSUES CURRENCY CURRENCY BOARD CURRENCY BOARD ARRANGEMENT DEBT DEBT SOURCE DEFICITS DEPOSIT DEPOSIT GUARANTEE DEPOSITORS DEPOSITS DISPOSABLE INCOMES DOMESTIC DEBT DOWN PAYMENT E-BANKING ECONOMIC CONDITIONS ECONOMIC DOWNTURN EESTI PANK EUROPEAN CENTRAL BANK EXPENDITURES EXPOSURE EXTERNALITIES FINANCE MINISTRIES FINANCES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL LEGISLATIONS FINANCIAL PRODUCTS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRENGTH FLOATING RATE FOREIGN BANKS FOREIGN FINANCIAL SERVICE FUND ASSETS GROSS DOMESTIC PRODUCT GUARANTEE SCHEME GUARANTEE SCHEMES HARMONIZATION HEDGE FUNDS HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOUSEHOLDS HOUSING HOUSING LOAN HOUSING LOANS INCOME INCOME GROWTH INCOME TAX INSOLVENCY INSOLVENCY LEGISLATION INSOLVENCY PROCEDURE INSURANCE INTEREST RATE INTEREST RATE DIFFERENTIAL INTEREST RATES INTERNATIONAL BANK INVESTMENT BANKS INVESTMENT FUND INVESTOR CONFIDENCE JURISDICTIONS LABOR COSTS LABOR MARKET LAWS LEGAL FRAMEWORKS LEGISLATION LEVEL PLAYING FIELD LIFE INSURANCE LIQUID ASSETS LIQUIDITY LIQUIDITY SUPPORT LOAN LOAN PORTFOLIO LOAN-TO-DEPOSIT RATIO LOW INTEREST RATES MACROECONOMIC STABILITY MANDATE MARKET CONDITIONS MARKET INFRASTRUCTURE MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MATURITIES MINIMUM CAPITAL REQUIREMENT MONEY MARKET MONEY MARKET RATES MORAL SUASION MORTGAGE INTEREST MORTGAGE LENDING MORTGAGES OUTPUT OUTREACH PARENT COMPANIES POLICY RESPONSE PRICE COMPETITION PRODUCTIVE INVESTMENTS PROFESSIONAL NETWORK PROFITABILITY PRUDENTIAL REGULATION PUBLIC FINANCES PUBLIC INVESTMENT RATING AGENCIES REAL ESTATE REAL ESTATE LOANS REAL SECTOR RECAPITALIZATION REGULATORY CONSTRAINT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY REQUIREMENTS REPAYMENT REPAYMENT CAPACITY RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETAIL INTEREST RETURN RISK MANAGEMENT RISK WEIGHT RISK WEIGHTS SAFETY NET SAVINGS SHORT-TERM LIQUIDITY SINGLE MARKET SUBSIDIARIES SUBSIDIARY SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POLICIES SVERIGES RIKSBANK SWAP TAX RETURNS TRANSFER OF ASSETS UNEMPLOYMENT UNION WORLD ECONOMY |
| spellingShingle |
AGGREGATE DEMAND ARBITRAGE ASSET PRICES ASSET TRANSFERS BALANCE SHEET BANK LENDING BANKING SECTOR BANKING SERVICES BANKING SYSTEM BASIS POINTS BORROWER BORROWING BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENT CAPITAL BASE CAPITAL MOVEMENTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS COLLATERAL CONSOLIDATION CONSUMER CREDIT CONSUMER LOANS CONSUMER PROTECTION CONTINGENT LIABILITIES CONVENTIONAL MORTGAGE CORE BUSINESS CORPORATE FINANCING CREDIT EXPANSION CREDIT GROWTH CREDIT LOSSES CREDIT MARKET CREDIT PRACTICES CREDIT QUALITY CREDIT RISKS CROSS-BORDER COOPERATION CROSS-BORDER ISSUES CURRENCY CURRENCY BOARD CURRENCY BOARD ARRANGEMENT DEBT DEBT SOURCE DEFICITS DEPOSIT DEPOSIT GUARANTEE DEPOSITORS DEPOSITS DISPOSABLE INCOMES DOMESTIC DEBT DOWN PAYMENT E-BANKING ECONOMIC CONDITIONS ECONOMIC DOWNTURN EESTI PANK EUROPEAN CENTRAL BANK EXPENDITURES EXPOSURE EXTERNALITIES FINANCE MINISTRIES FINANCES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL LEGISLATIONS FINANCIAL PRODUCTS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRENGTH FLOATING RATE FOREIGN BANKS FOREIGN FINANCIAL SERVICE FUND ASSETS GROSS DOMESTIC PRODUCT GUARANTEE SCHEME GUARANTEE SCHEMES HARMONIZATION HEDGE FUNDS HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOUSEHOLDS HOUSING HOUSING LOAN HOUSING LOANS INCOME INCOME GROWTH INCOME TAX INSOLVENCY INSOLVENCY LEGISLATION INSOLVENCY PROCEDURE INSURANCE INTEREST RATE INTEREST RATE DIFFERENTIAL INTEREST RATES INTERNATIONAL BANK INVESTMENT BANKS INVESTMENT FUND INVESTOR CONFIDENCE JURISDICTIONS LABOR COSTS LABOR MARKET LAWS LEGAL FRAMEWORKS LEGISLATION LEVEL PLAYING FIELD LIFE INSURANCE LIQUID ASSETS LIQUIDITY LIQUIDITY SUPPORT LOAN LOAN PORTFOLIO LOAN-TO-DEPOSIT RATIO LOW INTEREST RATES MACROECONOMIC STABILITY MANDATE MARKET CONDITIONS MARKET INFRASTRUCTURE MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MATURITIES MINIMUM CAPITAL REQUIREMENT MONEY MARKET MONEY MARKET RATES MORAL SUASION MORTGAGE INTEREST MORTGAGE LENDING MORTGAGES OUTPUT OUTREACH PARENT COMPANIES POLICY RESPONSE PRICE COMPETITION PRODUCTIVE INVESTMENTS PROFESSIONAL NETWORK PROFITABILITY PRUDENTIAL REGULATION PUBLIC FINANCES PUBLIC INVESTMENT RATING AGENCIES REAL ESTATE REAL ESTATE LOANS REAL SECTOR RECAPITALIZATION REGULATORY CONSTRAINT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY REQUIREMENTS REPAYMENT REPAYMENT CAPACITY RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETAIL INTEREST RETURN RISK MANAGEMENT RISK WEIGHT RISK WEIGHTS SAFETY NET SAVINGS SHORT-TERM LIQUIDITY SINGLE MARKET SUBSIDIARIES SUBSIDIARY SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POLICIES SVERIGES RIKSBANK SWAP TAX RETURNS TRANSFER OF ASSETS UNEMPLOYMENT UNION WORLD ECONOMY Sutt, Andres Korju, Helen Siibak, Kadri The Role of Macro-Prudential Policies in the Boom and Adjustment Phase of the Credit Cycle in Estonia |
| geographic_facet |
Europe and Central Asia Europe Eastern Europe Commonwealth of Independent States Estonia |
| relation |
Policy Research working paper ; no. WPS 5835 |
| description |
The Estonian economy experienced an
unusually long business and credit cycle during the first
decade of the 21st century. The magnitude of the cycle
tested what can be achieved by traditional policy tools and
the limits of macro-prudential policies. The country's
financial sector, almost fully consisting of foreign banks,
displayed the complexities of cross-border regulation and
supervision. Capital and liquidity requirements that were
stricter than international minimums, as well as the
build-up of fiscal buffers, were instrumental to engineering
an orderly adjustment. Openness and integration, including
well-advanced cross-border cooperation, were equally
important in maintaining financial stability throughout the
global financial crisis. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Sutt, Andres Korju, Helen Siibak, Kadri |
| author_facet |
Sutt, Andres Korju, Helen Siibak, Kadri |
| author_sort |
Sutt, Andres |
| title |
The Role of Macro-Prudential Policies in the Boom and Adjustment Phase of the Credit Cycle in Estonia |
| title_short |
The Role of Macro-Prudential Policies in the Boom and Adjustment Phase of the Credit Cycle in Estonia |
| title_full |
The Role of Macro-Prudential Policies in the Boom and Adjustment Phase of the Credit Cycle in Estonia |
| title_fullStr |
The Role of Macro-Prudential Policies in the Boom and Adjustment Phase of the Credit Cycle in Estonia |
| title_full_unstemmed |
The Role of Macro-Prudential Policies in the Boom and Adjustment Phase of the Credit Cycle in Estonia |
| title_sort |
role of macro-prudential policies in the boom and adjustment phase of the credit cycle in estonia |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005144403 http://hdl.handle.net/10986/3599 |
| _version_ |
1764387382037053440 |
| spelling |
okr-10986-35992021-04-23T14:02:11Z The Role of Macro-Prudential Policies in the Boom and Adjustment Phase of the Credit Cycle in Estonia Sutt, Andres Korju, Helen Siibak, Kadri AGGREGATE DEMAND ARBITRAGE ASSET PRICES ASSET TRANSFERS BALANCE SHEET BANK LENDING BANKING SECTOR BANKING SERVICES BANKING SYSTEM BASIS POINTS BORROWER BORROWING BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENT CAPITAL BASE CAPITAL MOVEMENTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITALIZATION CENTRAL BANKS COLLATERAL CONSOLIDATION CONSUMER CREDIT CONSUMER LOANS CONSUMER PROTECTION CONTINGENT LIABILITIES CONVENTIONAL MORTGAGE CORE BUSINESS CORPORATE FINANCING CREDIT EXPANSION CREDIT GROWTH CREDIT LOSSES CREDIT MARKET CREDIT PRACTICES CREDIT QUALITY CREDIT RISKS CROSS-BORDER COOPERATION CROSS-BORDER ISSUES CURRENCY CURRENCY BOARD CURRENCY BOARD ARRANGEMENT DEBT DEBT SOURCE DEFICITS DEPOSIT DEPOSIT GUARANTEE DEPOSITORS DEPOSITS DISPOSABLE INCOMES DOMESTIC DEBT DOWN PAYMENT E-BANKING ECONOMIC CONDITIONS ECONOMIC DOWNTURN EESTI PANK EUROPEAN CENTRAL BANK EXPENDITURES EXPOSURE EXTERNALITIES FINANCE MINISTRIES FINANCES FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL LEGISLATIONS FINANCIAL PRODUCTS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRENGTH FLOATING RATE FOREIGN BANKS FOREIGN FINANCIAL SERVICE FUND ASSETS GROSS DOMESTIC PRODUCT GUARANTEE SCHEME GUARANTEE SCHEMES HARMONIZATION HEDGE FUNDS HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOUSEHOLDS HOUSING HOUSING LOAN HOUSING LOANS INCOME INCOME GROWTH INCOME TAX INSOLVENCY INSOLVENCY LEGISLATION INSOLVENCY PROCEDURE INSURANCE INTEREST RATE INTEREST RATE DIFFERENTIAL INTEREST RATES INTERNATIONAL BANK INVESTMENT BANKS INVESTMENT FUND INVESTOR CONFIDENCE JURISDICTIONS LABOR COSTS LABOR MARKET LAWS LEGAL FRAMEWORKS LEGISLATION LEVEL PLAYING FIELD LIFE INSURANCE LIQUID ASSETS LIQUIDITY LIQUIDITY SUPPORT LOAN LOAN PORTFOLIO LOAN-TO-DEPOSIT RATIO LOW INTEREST RATES MACROECONOMIC STABILITY MANDATE MARKET CONDITIONS MARKET INFRASTRUCTURE MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MATURITIES MINIMUM CAPITAL REQUIREMENT MONEY MARKET MONEY MARKET RATES MORAL SUASION MORTGAGE INTEREST MORTGAGE LENDING MORTGAGES OUTPUT OUTREACH PARENT COMPANIES POLICY RESPONSE PRICE COMPETITION PRODUCTIVE INVESTMENTS PROFESSIONAL NETWORK PROFITABILITY PRUDENTIAL REGULATION PUBLIC FINANCES PUBLIC INVESTMENT RATING AGENCIES REAL ESTATE REAL ESTATE LOANS REAL SECTOR RECAPITALIZATION REGULATORY CONSTRAINT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY REQUIREMENTS REPAYMENT REPAYMENT CAPACITY RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETAIL INTEREST RETURN RISK MANAGEMENT RISK WEIGHT RISK WEIGHTS SAFETY NET SAVINGS SHORT-TERM LIQUIDITY SINGLE MARKET SUBSIDIARIES SUBSIDIARY SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POLICIES SVERIGES RIKSBANK SWAP TAX RETURNS TRANSFER OF ASSETS UNEMPLOYMENT UNION WORLD ECONOMY The Estonian economy experienced an unusually long business and credit cycle during the first decade of the 21st century. The magnitude of the cycle tested what can be achieved by traditional policy tools and the limits of macro-prudential policies. The country's financial sector, almost fully consisting of foreign banks, displayed the complexities of cross-border regulation and supervision. Capital and liquidity requirements that were stricter than international minimums, as well as the build-up of fiscal buffers, were instrumental to engineering an orderly adjustment. Openness and integration, including well-advanced cross-border cooperation, were equally important in maintaining financial stability throughout the global financial crisis. 2012-03-19T18:05:17Z 2012-03-19T18:05:17Z 2011-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005144403 http://hdl.handle.net/10986/3599 English Policy Research working paper ; no. WPS 5835 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe Eastern Europe Commonwealth of Independent States Estonia |