Abstract

THE INSTITUTIONAL FRAMEWORK OF MACROPRUDENTIAL POLICY IN IRAQ: REALITY AND CHALLENGES

Gailan Ismael Abdullah, SaadAbdNajem Al-Abdali

Volume: 9 Issue: 2 2019

Abstract:

The stability of the financial system is of great importance to the economic system as one of the main pillars of the development and progress of the national economy. The financial system conducts financial intermediation between savers and investors, thereby contributing to economic stability. Therefore, the Central Bank of Iraq is keen to Surround the financial system by advanced Control and supervisory system. This highlights the role of macroprudential policy, which focuses on the interdependence between financial institutions in the markets, and the extent to which these institutions are exposed to the risks arising from changes in macroeconomic performance and economic cycles. Thus, the objectives of the macroprudential policy are to maintain financial stability through the application of appropriate tools to address and contain financial imbalances, and to reduce the risk of crises across the financial system as a whole. Based on the institutional framework that enables this policy to achieve its objectives, which is represented by the Central Bank of Iraq.

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