Seminar on Macro Prudential Policies in the SAARC Countries, June 8-9, 2017, Katmandu, Nepal

Macro-prudential policy has been defined primarily as the use of prudential tools to limit systemic risk. A central element in this definition is the notion of systemic risk-the risk of disruptions to the provision of financial services that is caused by an impairment of all or parts of the financial system, and can cause serious negative consequences for the real economy. Systemic risk is generally recognized as having two dimensions: vulnerabilities related to the build-up of risks over time ("time dimension"), and vulnerabilities from interconnectedness and the associated distribution of risk within the financial system at any given point in time ("cross-sectional" or "structural" dimension). In addressing these vulnerabilities, the macro-prudential policy complements the micro-prudential focus on the safety and soundness of financial institutions (Committee on the Global Financial System (CGFS) 2010). By mitigating systemic risks, macro-prudential measures ultimately aim to reduce the frequency and severity of financial crises.

The seminar aimed to enhance a framework of the best practices of macro-prudential policies by sharing the experiences of the SAARC countries. In this regard, the specific objectives of the seminar are:

a. To understand the macro prudential policies implemented in the SAARC region.

b. To review the modalities of policies implemented by the SAARC member countries and;

c. To identify the problems and challenges for formulation and successful implementation of macro-prudential policies.

Seminar Proceedings and Papers

Seminar on Financial Stability, March 27-29, 2017, Islamabad

The State Bank of Pakistan (SBP) organized a seminar on Financial Stability at National Institute of Banking and Finance (NIBAF) Islamabad during March 27 to 29, 2017. This was the 12th seminar organized by SBP since 2002 under the banner of SAARCFINANCE. The objective of the seminar was to conduct a dialogue, share experiences among the seminar participants and bring into light policies and practices prevailing in the member countries relating to financial stability

Delegates from Afghanistan, Bangladesh, Nepal and Sri Lanka presented country papers to share their thoughts, country experiences, policies and measures in the area of financial stability. Different experts shared their views on recent developments, best practices and policy options and the role of central banks and financial institutions.

The seminar was inaugurated by Mr. Riaz Riazuddin, Deputy Governor, SBP, and attended by around 40 mid to senior level officials from the central banks of SAARC member countries, and the Securities and Exchange Commission of Pakistan (SECP).