Trifena, Limia (2021) Designing and operationalising macroprudential supervisory reforms in Indonesia, Malaysia, Singapore, and the UK : a comparative legal analysis with lessons for Indonesia. PhD thesis, University of Warwick.

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Abstract

The global financial crisis (GFC) has raised international consensus about the advantages of designating the central bank as the principal authority for the macroprudential framework. Although such an arrangement could ensure better coordination between macroeconomic and financial stability policies, it does not automatically eliminate the inherent challenges within the design and operation of macroprudential supervision. Left unaddressed, these challenges can easily impede the central bank’s ability and willingness to act against the emergence of systemic risk.

In light of the worldwide adoption of the macroprudential framework, this thesis critically examines its adoptions in the UK, Singapore, Malaysia, and Indonesia, with a view to draw lessons for Indonesia. Findings assert that an effective institutional arrangement and robust legal structure are key for the central bank to manage its numerous responsibilities while ensuring its ability and willingness to mitigate the build-up of systemic risk. This thesis also uncovers that the success of managing policy trade-offs and conflicts of interest in the operationalisation of macroprudential supervision will principally be determined by (i) the access to data and information, (ii) the composition of the authorities involved in the macroprudential decision-making process, (iii) a clear separation of decision-making processes between different policy functions of the central banks, (iv) robust inter-agency coordination, (v) institutional proximity of macro-and micro-prudential authorities, (vi) coordination with the Ministry of Finance, and (vii) the extent of rule-making powers assigned to the macroprudential authority.

Using the mixed methodologies of functional comparative legal analysis, doctrinal and case study analysis, this research is the first of its kind to compare the Indonesian model with more established frameworks found in three other countries: the UK, Singapore, and Malaysia. As a result, this study expands existing literatures in law and practice through empirical evidence on the macroprudential supervisory reforms adopted in four countries. Ultimately, this research provides practical implications for Indonesian policymakers and legislators by formulating seven policy recommendations to redesign the legal structures, organisational capacity of the central bank and institutional arrangements for macroprudential supervision.

Item Type:	Thesis (PhD)
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HG Finance
Library of Congress Subject Headings (LCSH):	Banks and banking, Central -- Law and legislation, Economic policy, Finance -- Law and legislation, Economic stabilization
Official Date:	August 2021
Dates:	Date Event August 2021 UNSPECIFIED
Institution:	University of Warwick
Theses Department:	School of Law
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Singh, Dalvinder, 1970-
Format of File:	pdf
Extent:	275 leaves : illustrations
Language:	eng

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