Credit Growth and the Effectiveness of Reserve Requirements and Other Macroprudential Instruments in Latin America
By C. Mora, Mercedes García-Escribano, M. Martin. Social Science Research Network, 2012
181 citations recorded by the source corpus.
Over the past decade policy makers in Latin America have adopted a number of macroprudential instruments to manage the procyclicality of bank credit dynamics to the private sector and contain systemic risk. Reserve requirements, in particular, have been actively employed. Despite their widespread use, little is known about their effectiveness and how they interact with monetary policy. In this paper, we examine the role of reserve requirements and other macroprudential instruments and report new cross-country evidence on how they influence real private bank credit growth. Our results show that these instruments have a moderate and transitory effect and play a complementary role to monetary policy.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/af0b2a9448d4c024296e3a565fca721e4483a42f
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Yener Altunbaş
- Ilhyock Shim
- L. Gambacorta
- Mahir Binici
- J. Vandenbussche
- E. Detragiache
- Kenneth N. Kuttner
- U. Vogel
In Finance
- Yener Altunbaş
- Ilhyock Shim
- L. Gambacorta
- Mahir Binici
- J. Vandenbussche
- E. Detragiache
- Kenneth N. Kuttner
- U. Vogel
Citations in the corpus
- What do we know about the effects of macroprudential policy (2018, unknown): “Tovar et al. (2012)’s results suggest that the effects of changes in policy interest rates and macroprudential policy in the form of reserve requirements have reinforced each other in Latin American economies.”
- Macroprudential Policies and Housing Prices-A New Database and Empirical Evidence for Central, Eastern, and Southeastern Europe (2012, background): “The results of Tovar et al. (2012)’s and Lim et al. (2011)’s event analyses are consistent with the econometric results mentioned above.”
- Can non-interest rate policies stabilize housing markets? Evidence from a panel of 57 economies (2016, background): “We also consulted Borio & Shim (2007), a survey by the Committee on the Global Financial System (CGFS) on macroprudential policy conducted in December 2009, Hilbers et al. (2005), Crowe et al. (2011), Lim et al. (2011), and Tovar et al. (2012).”
- Macroprudential policy and bank risk (2018, background): “…et al (2013) complement and cross-check official sources and documents with Borio and Shim (2007), survey by the Committee on the Global Financial System (CGFS) on macroprudential policy conducted in December 2009, Hilbers et al (2005), Crowe et al (2011), Lim et al (2011), and Tovar et al (2012).”