Assessment of the effectiveness of the macroprudential measures implemented in the context of the Covid-19 pandemic

Lucas Avezum, Vítor Oliveira and Diogo Serra

International Review of Economics & Finance, 2024, vol. 93, issue PA, 1542-1555

Abstract: In this paper, we assess the effectiveness of the macroprudential capital buffers’ release on loans granted to households, implemented in the context of the Covid-19 pandemic. Using the synthetic control method, we find evidence that the buffers releases contributed, on average, to mitigate the procyclicality of credit to households, specifically for house purchase and for small businesses purposes. For the aggregate household lending, we find positive average treatment effects for both the release of the CCyB and the SyRB. However, the results suggest that, for credit associated with small businesses purposes, only the release of the CCyB had an effect.

Keywords: Macroprudential policy; Capital buffer; Covid-19 (search for similar items in EconPapers)
JEL-codes: E51 G28 H12 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:93:y:2024:i:pa:p:1542-1555

DOI: 10.1016/j.iref.2024.03.082

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