Macroprudential policy is the set of cautious actions which are directed to mitigating risks of the financial sector. In this regard, Macroprudential policy is used to identify, monitor and assess systemic risks to financial stability with a view of protecting the stability of the financial system as a whole, which also includes enhancing the resilience of the financial system, preventing and reducing the accumulation of the systemic risks to ensure that the financial sector makes a sustainable contribution to economic growth.

According to article 6 of the Law of the Republic of Tajikistan “On the National Bank of Tajikistan” one of the goals of the National Bank of Tajikistan is implementation and surveillance of macroprudential policy.

The realization mechanism of macroprudential policy is conducted according to the “The macroprudential framework of the National Bank of Tajikistan” (Resolution of the NBT Board № 95 as of July 12, 2016).

Intermediate objectives of the macroprudential policy directed to achieving main objectives, assure improved transparency in the process of implementation and consist of followings:

1.       Mitigate and prevent excessive growth of risk weighted assets and insolvency;

2.       Mitigate and prevent  illiquidity  and  maturity mismatch;

3.       Mitigate and prevent  growth of FX deposits , loans and NPLs;

4.       Limit direct and indirect exposure concentrations;

5.       Strengthen the transparency and confidence in the financial system.

The decision-making process of the macroprudential policy follows a four-step cycle:

1.     Identification and evaluation of systemic risks;

2. Selection of the macro-prudential instruments;

3. Implementation of the macro-prudential instruments;

4. Evaluation of the macro-prudential instruments.

For achievement of intermediate goals of macroprudential policy, the National Bank of Tajikistan applies tools which are recommended by Financial stability Committee, and also the tools developed on the basis of evaluation of financial system risks. Macroprudential policy is directed only on reduction of probable occurrence of future crises, and it does not bear responsibility for their full elimination.