Abstract
The global financial crisis has affected almost all countries worldwide. Its epicenter has been in the core of the advanced economies. After the crisis, deleveraging has been slow while the structure of capital flows has changed from debt- to equity-type instruments. The decline in cross-border bank lending, particularly bank-to-bank flows, has been a key driver of these developments. The crisis has triggered substantive policy responses: fiscal and monetary policy measures have been used actively, stress testing and rules governing recovery and resolution regimes for financial institutions have been further developed, microprudential rules and in particular capital requirements have been tightened, and macroprudential toolkits have been assembled.
Authors
- Claudia M. Buch
- Matthieu Bussière
- Linda Goldberg