Does Macro-Prudential Regulation Leak? Evidence from a UK Policy Experiment

By Shekhar Aiyar, C. Calomiris, Tomasz Wieladek. 2014

483 citations recorded by the source corpus.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/54ed2a1c5b330a55805f616b4e80ad51908a3050

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Citations in the corpus

The international transmission of bank capital requirements: Evidence from the UK ☆ (2014, methodology): “Overall, this is broadly similar to the effects of between 5.7% and 7.6% reported in studies that focus on the transmission to the domestic credit supply (Aiyar, Calomiris, and Wieladek, 2014a).”
Bank Size, Capital, and Systemic Risk: Some International Evidence (2016, unknown): “Yet others argue that such restrictive regulations would distort the allocation of banks' resources, hurting the efficiency of capital allocation and imposing substantial costs to the real economy (Kashyap et al., 2010b; Aiyar et al., 2014).”
Effective Macroprudential Policy: Cross‐Sector Substitution from Price and Quantity Measures (2016, unknown): “…prices (e.g., Morgan, Regis, and Salike 2015, Cerutti, Claessens, and Laeven 2017, Akinci and Olmstead-Rumsey 2018), and whether measures “leak” through foreign banks (Aiyar, Calomiris, and Wieladek 2014, Reinhardt and Sowerbutts 2015, Frost, van Horen, and de Haan 2017, Cerutti and Zhou 2018).”
The Anatomy of the Transmission of Macroprudential Policies (2020, unknown): “Our paper is also related to the literature, empirical (Aiyar et al., 2014; Jimenez et al., 2017; Gropp et al., 2019; Benetton, 2018; Benetton et al., 2017; De Marco and Wieladek, 2015; Ayyagari et al., 2019) and theoretical (Landvoigt and Begenau, 2017; Elenev et al.”
The Use and Effectiveness of Macroprudential Policies: New Evidence (2015, unknown): “They also document that larger and possibly more systemic banks are less affected.7 Aiyar et al. (2014a), using bank-level information in the UK over the period 1998–2007, show that bank-specific higher capital requirements dampened lending by banks in the UK, with strong aggregate effects.”
How does credit supply respond to monetary policy and bank minimum capital requirements (2016, background): “…requirements, divided according to the size and frequency of the changes in bank minimum capital requirements, as well as additional information regarding the cyclical pattern of capital requirement changes and their cross-section correlates, can be found in Aiyar, Calomiris, and Wieladek (2014a).”
The Limits of Model-based Regulation (2014, unknown): “40The magnitudes of the effects are consistent with findings by Aiyar et al. (2014), who find for the U.”
Where the Risks Lie: A Survey on Systemic Risk (2017, unknown): “(2014) Contagion Balance-sheet contagion Allen and Gale (2000b) Elsinger, Lehar, and Summer (2006) Large exposure limits Freixas, Parigi, and Rochet (2000) Drehmann and Tarashev (2011) Resolution framework Payment and clearing infrastructures Rochet and Tirole (1996a) McAndrews and Potter (2002) Man”
Cross-Border Prudential Policy Spillovers: How Much? How Important? Evidence from the International Banking Research Network (2016, background): “…effectiveness may be weakened when risky or excessive lending moves outside of the regulatory perimeter to non-covered entities or activities (Aiyar, Calomiris, and Wieladek 2014; Bengui and Bianchi 2014; Reinhardt and Sowerbutts 2015) or to other geographic regions (Houston, Lin, and Ma…”
Macroprudential policy and bank systemic risk (2020, unknown): “Aiyar et al. (2014) find that foreign bank branches increase lending when regulation is tightened in the domestic country because they are excluded from domestic regulation.”
How Effective are Macroprudential Policies? An Empirical Investigation (2017, background): “However, Aiyar et al. (2014) use bank-level data from the UK to show that bank capital requirements were somewhat ineffective due to increased lending (substitution) from resident foreign bank branches.”
Monetary Policy, Financial Conditions, and Financial Stability (2014, unknown): “However, Aiyar, Calomiris, and Wieladek (2014) find substantial leakage of capital regulation as foreign banks partially offset the impact of capital requirements on bank credit supply.”