Friend or Foe? : Cross-Border Linkages, Contagious Banking Crises, and 'Coordinated' Macroprudential Policies /

This paper examines whether the coordinated use of macroprudential policies can help lessen the incidence of banking crises. It is well-known that rapid domestic credit growth and house price growth positively influence the chances of a banking crisis. As well, a crisis in other countries with high...

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Dettagli Bibliografici
Autore principale: Choi, Seung
Altri autori: Kodres, Laura, Lu, Jing
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 2018.
Serie:IMF Working Papers; Working Paper ; No. 2018/009
Accesso online:Full text available on IMF
Descrizione
Riassunto:This paper examines whether the coordinated use of macroprudential policies can help lessen the incidence of banking crises. It is well-known that rapid domestic credit growth and house price growth positively influence the chances of a banking crisis. As well, a crisis in other countries with high trade and financial linkages raises the crisis probability. However, whether such 'contagion effects' can operate to reduce crisis probabilities when highly linked countries execute macroprudential policies together has not been fully explored. A dataset documenting countries' use of macroprudential tools suggests that a 'coordinated' implementation of macroprudential policies across highly-linked countries can help to stem the risks of widespread banking crises, although this positive effect may take some time to materialize.
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Descrizione fisica:1 online resource (44 pages)
Natura:Mode of access: Internet
ISSN:1018-5941
Accesso:Electronic access restricted to authorized BRAC University faculty, staff and students