The countercyclical capital buffer and the composition of bank lending

Raphael Auer, Alexandra Matyunina and Steven Ongena

Journal of Financial Intermediation, 2022, vol. 52, issue C

Abstract: Do targeted macroprudential measures impact non-targeted sectors too? We investigate the compositional changes in the supply of credit by Swiss banks, exploiting their differential exposure to the activation in 2013 of the countercyclical capital buffer (CCyB) which targeted banks’ exposure to residential mortgages. We find that the additional capital requirements resulting from the activation of the CCyB are associated with higher growth in banks’ commercial lending. While banks are lending more to all types of businesses, the new macroprudential policy benefits smaller and riskier businesses the most. However, the interest rates and other costs of obtaining credit for these firms rise as well.

Keywords: Macroprudential policy; Spillovers; Credit; Bank capital; Systemic risk (search for similar items in EconPapers)
JEL-codes: E51 E58 E60 G01 G21 G28 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Working Paper: The countercyclical capital buffer and the composition of bank lending (2021)
Working Paper: The Countercyclical Capital Buffer and the Composition of Bank Lending (2019)
Working Paper: The countercyclical capital buffer and the composition of bank lending (2019)
Working Paper: The countercyclical capital buffer and the composition of bank lending (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinin:v:52:y:2022:i:c:s1042957322000183

DOI: 10.1016/j.jfi.2022.100965

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