Luo Man, Zhang Xiaolong
Studies of International Finance. 2025, 0(6): 43-57.
Since the 2008 global financial crisis, strengthening macroprudential regulation has become an global consensus. Under the advocacy and guidance of the G20, many countries have actively established and refined macroprudential policy frameworks, primarily focusing on the banking system through the introduction of various regulatory tools such as countercyclical capital buffers and liquidity requirements. Nevertheless, compared to monetary policy, macroprudential management remains less mature. Against this backdrop, China has also placed strong emphasis on financial stability, identifying the improvement and expansion of macroprudential functions as a key strategic priority.
This study consolidates cross-country experiences and empirical insights to provide a comprehensive review of macroprudential policy implementation, with a particular focus on understanding transmission mechanisms, policy effectiveness, and the main determinants of outcomes. The review highlights several key findings. Firstly, the application of macroprudential tools has expanded significantly since the crisis, with policy stances generally tightening except for temporary easing during the COVID-19 pandemic. Secondly, focusing on the goals of“leaning against the wind”and“building resilience”, these measures have enhanced economic and financial stability by influencing the behavior of financial institutions and borrowers as well as stabilizing credit growth, asset prices, and economic cycles at both the micro and macro levels. Thirdly, policy effectiveness depends on six factors—intervention direction, policy strength, timing within the financial cycle, implementation duration, the scope of targeted entities, and coordination with other policies. Notably, emerging market economies tend to achieve better outcomes due to stronger policy targeting and greater policy coherence.
In the post-pandemic era, heightened global economic uncertainty, accelerated digital transformation in financial systems, a shift toward market-based financing, and the emergence of new risk sources present significant challenges to the traditional bank-centric macroprudential framework. To better adapt to this increasingly complex and dynamic financial environment, countries need to rapidly enhance governance mechanisms, strengthen systemic risk monitoring and early-warning capabilities, refine the precision and effectiveness of macroprudential tools, and broaden regulatory coverage. Finally, drawing on China's practical experience, this paper provides targeted policy recommendations, aiming to contribute valuable insights toward further refining macroprudential policy frameworks and enhancing policy effectiveness.
