Assessing and Managing Rapid Credit Growth and the Role of Supervisory and Prudential Policies

By P. Hilbers, Inci Otker-Robe, C. Pazarbaşioǧlu, Gudrun Johnsen. Social Science Research Network, 2005

161 citations recorded by the source corpus.

This paper reviews trends in bank lending to the private sector, with a particular focus on Central and Eastern European countries, and finds that rapid growth of private sector credit continues to be a key challenge for most of these countries. The paper discusses possible implications for economic and financial stability and the policy options available to counter and reduce these risks. It argues that the authorities will need to focus on the implications for both the macro economy and the financial system and, depending on their assessment, may need a comprehensive policy response comprising a mix of macro and prudential policies. In particular where there are limitations to the effective use of monetary and fiscal measures, supervisory and prudential policy responses will have a key role in addressing financial stability concerns.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/fafa274072cdb73d70b42c00887dc1e8247c1ea5

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Citations in the corpus

What Can (Macro-) Prudential Policy do to Support Monetary Policy? (2007, unknown): “19 For an overview of the recent experience in Central and Eastern Europe, see Hilbers et al (2005) and Mihaljek (2006).”
Macroprudential Policy - A Literature Review (2012, unknown): “Other discretionary tools that could play an important role include supervisory review pressure or quantitative adjustments to the various prudential tools (e.g. Hilbers et al, 2005).”
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).”