Household Credit, Global Financial Cycle, and Macroprudential Policies : Credit Register Evidence from an Emerging Country /

We analyze the effects of macroprudential policies on local bank credit cycles and interactions with international financial conditions. For identification, we exploit the comprehensive credit register containing all bank loans to individuals in Romania, a small open economy subject to external shoc...

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Detalles Bibliográficos
Autor principal: Epure, Mircea
Otros Autores: Mihai, Irina, Minoiu, Camelia, Peydro, Jose-Luis
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2018.
Colección:IMF Working Papers; Working Paper ; No. 2018/013
Acceso en línea:Full text available on IMF
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100 1 |a Epure, Mircea. 
245 1 0 |a Household Credit, Global Financial Cycle, and Macroprudential Policies :   |b Credit Register Evidence from an Emerging Country /  |c Mircea Epure, Irina Mihai, Camelia Minoiu, Jose-Luis Peydro. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2018. 
300 |a 1 online resource (46 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We analyze the effects of macroprudential policies on local bank credit cycles and interactions with international financial conditions. For identification, we exploit the comprehensive credit register containing all bank loans to individuals in Romania, a small open economy subject to external shocks, and the period 2004-2012, which covers a full boom-bust credit cycle when a wide range of macroprudential measures were deployed. Although household leverage is known to be a key driver of financial crises, to our knowledge this is the first paper that employs a household credit register to study leverage and macroprudential policies over a full economic cycle. Our results show that tighter macroprudential conditions are associated with a significant decline in household credit, with substantially stronger effects for foreign currency (FX) loans than for local currency loans. The effects on FX loans are higher for: (i) ex-ante riskier borrowers proxied by higher debt-service-toincome ratios and (ii) banks with greater exposure to foreign funding. Moreover, tighter macroprudential policy has stronger dampening effects on FX lending when global risk appetite is high and foreign monetary policy is expansionary. Finally, quantitative effects are in general larger for borrower rather than lender macroprudential policies. 
538 |a Mode of access: Internet 
700 1 |a Mihai, Irina. 
700 1 |a Minoiu, Camelia. 
700 1 |a Peydro, Jose-Luis. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2018/013 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2018/013/001.2018.issue-013-en.xml  |z IMF e-Library