Cross-Border Prudential Policy Spillovers: How Much? How Important? Evidence from the International Banking Research Network
By Claudia M. Buch, Linda S. Goldberg. Social Science Research Network, 2016
124 citations recorded by the source corpus.
The development of macroprudential policy tools has been one of the most significant changes in banking regulation in recent years. In this multi-study initiative of the International Banking Research Network (IBRN), researchers from 15 central banks and 2 international organizations use micro-banking data in conjunction with a novel dataset of prudential instruments to study international spillovers of prudential policy changes for bank lending growth. The collective analysis has three main findings. First, prudential instrument effects sometimes spill over across borders through bank lending. Second, international spillovers vary across prudential instruments and are heterogeneous across banks. Bank-specific factors like balance sheet conditions and business models drive the amplitude and direction of spillovers to lending growth rates. Third, international spillovers of prudential policy on loan growth rates have not been large on average. However, our results tend to underestimate the full effect by focusing on adjustment along the intensive margin and by analyzing a period in which relatively few countries implemented country-specific macroprudential policies.
Subfields: Accounting, Finance, Information Systems
View Paper: https://www.semanticscholar.org/paper/511c875a531abc02ca01d497da6b94e49546e36c
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Citations in the corpus
- Regulatory arbitrage in action: evidence from banking flows and macroprudential policy (2015, background): “More recently, Buch and Goldberg (2016) provide an overview on the findings of a project by the International Bank Research Network on the international transmission of macroprudential policies.”
- The shifting drivers of global liquidity (2020, unknown): “Buch and Goldberg (2017) provide a meta-analysis of findings. analysis, 𝑌𝑡 𝑗 can be cross-border loans - to all sectors, to banks, to non-banks - or international debt securities - issued by all sectors, by banks or by non-banks.”