EconPapers    
Economics at your fingertips  
 

Prudential policies and their impact on credit in the United States

Paul Calem, Ricardo Correa and Seung Jung Lee ()

No 635, BIS Working Papers from Bank for International Settlements

Abstract: We analyze how two types of recently used prudential policies affected the supply of credit in the United States. First, we test whether the U.S. bank stress tests had any impact on the supply of mortgage credit. We find that the first Comprehensive Capital Analysis and Review (CCAR) stress test in 2011 had a negative effect on the share of jumbo mortgage originations and approval rates at stress-tested banks-banks with worse capital positions were impacted more negatively. Second, we analyze the impact of the 2013 Supervisory Guidance on Leveraged Lending and subsequent 2014 FAQ notice, which clarified expectations on the Guidance. We find that the share of speculative-grade term-loan originations decreased notably at regulated banks after the FAQ notice.

Keywords: bank stress tests; CCAR; Home Mortgage Disclosure Act (HMDA) data; jumbo mortgages; leveraged lending; macroprudential policy; Shared National Credit (SNC) data; Interagency Guidance on Leveraged Lending; syndicated loan market (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cba, nep-rmg and nep-ure
Date: 2017-05
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.bis.org/publ/work635.pdf Full PDF document (application/pdf)
http://www.bis.org/publ/work635.htm (text/html)

Related works:
Working Paper: Prudential Policies and Their Impact on Credit in the United States (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:635

Access Statistics for this paper

More papers in BIS Working Papers from Bank for International Settlements Contact information at EDIRC.
Series data maintained by Christian Beslmeisl ().

 
Page updated 2017-10-09
Handle: RePEc:bis:biswps:635