THE IMPACT OF MACPORUDENTAL POLICY ON THE SOUNDNESS OF THE BANKING SECTOR AND MACROECONOMIC STABILITY

The purpose of the study. To identify factors influencing the effectiveness of macroprudential policy in stabilizing the banking sector, based on a review of modern research.

The research methodology is based on the study of scientific and specialized literature devoted to the impact of macroprudential measures on financial stability. Using general scientific methods of analogy, generalization, logical analysis and systematization, such factors as the structure and characteristics of banks, openness of the economy, capital controls, coordination with monetary policy, the level of default risk on public debt and the level of development of advanced financial technologies were identified. Potential difficulties in the application of individual macroprudential measures associated with the distortion of the behavior of borrowers and banks in response to the introduction of restrictions are discussed.

Research results Based on the conducted review, it was found that while the effectiveness of macroprudential measures as stabilization measures is quite high, especially for developing countries, their impact on long-term growth rates can be both positive and negative, which depends on a number of factors and characteristics of the economy, as well as on the approaches and regulatory instruments used. In particular, the redistribution of financial resources from slower-growing industries, such as construction, to more productive ones, such as the tradable sector, is important.

Conclusions The study confirms the preference for a systemic rather than discretionary approach to the implementation of macroprudential policy in conditions of consistency with other areas of economic policy.

Originality The study systematizes the factors determining the effectiveness of macroprudential policy, with an emphasis on the relationship between financial stability and long-term economic growth.