Leakages from Macroprudential Regulations : The Case of Household-Specific Tools and Corporate Credit.

Sector-specific macroprudential regulations increase the riskiness of credit to other sectors. Using firm-level data, this paper computed the measures of the riskiness of corporate credit allocation for 29 advanced and emerging economies. Consistently across these measures, the paper finds that duri...

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Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2021.
Saila:IMF Working Papers; Working Paper ; No. 2021/113
Gaiak:
Sarrera elektronikoa:Full text available on IMF
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245 1 0 |a Leakages from Macroprudential Regulations :   |b The Case of Household-Specific Tools and Corporate Credit. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2021. 
300 |a 1 online resource (35 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 Sector-specific macroprudential regulations increase the riskiness of credit to other sectors. Using firm-level data, this paper computed the measures of the riskiness of corporate credit allocation for 29 advanced and emerging economies. Consistently across these measures, the paper finds that during credit expansions, an unexpected tightening of household-specific macroprudential tools is followed by a rise in riskier corporate lending. Quantitatively, such unexpected tightening during a period of rapid credit growth increases the riskiness of corporate credit by around 10 percent of the historical standard deviation. This result supports early policy interventions when credit vulnerabilities are still low, since sectoral leakages will be less important at this stage. Further evidence from bank lending standards surveys suggests that the leakage effects are stronger for larger firms compared to SMEs, consistent with recent evidence on the use of personal real estate as loan collateral by small firms. 
538 |a Mode of access: Internet 
650 7 |a Financial Markets and The Macroeconomy  |2 imf 
650 7 |a Foreign Exchange  |2 imf 
650 7 |a Informal Economy  |2 imf 
650 7 |a Monetary Policy, Central Banking, and The Supply Of Money  |2 imf 
650 7 |a Underground Econom  |2 imf 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2021/113 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2021/113/001.2021.issue-113-en.xml  |z IMF e-Library