ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The Financial Policy Committee (FPC) is a macroprudential regulator.
A
Yes, I understand this from the notes
B
No, I don’t understand this from the notes
C
No, I don’t understand this, as I have not read the notes
D
None of the above
Explanation: 

Detailed explanation-1: -The FPC is a committee of the Bank of England (BoE) that is responsible for macro-prudential regulation in the UK. At present, the macro-prudential tools available to it are the countercyclical capital buffer (CCyB or CCB), the sectoral capital requirements (SCR), the leverage ratios and the housing markets tools.

Detailed explanation-2: -The Financial Policy Committee is responsible for contributing to the Bank’s financial stability objective by identifying and monitoring systemic threats to financial stability and taking action to reduce or remove those threats.

Detailed explanation-3: -What is Macroprudential Policy? The aim of macroprudential policy is to safeguard financial stability. In doing so, macroprudential policy looks to ensure the financial system can absorb, rather than amplify, adverse shocks.

Detailed explanation-4: -Under the SSM Regulation (Council Regulation (EU) No 1024/2013), the ECB is responsible for assessing macroprudential measures adopted by national authorities in the countries subject to ECB Banking Supervision.

There is 1 question to complete.