EconPapers    
Economics at your fingertips  
 

Macroprudential policy and bank risk

Yener Altunbas (), Mahir Binici and Leonardo Gambacorta ()

No 646, BIS Working Papers from Bank for International Settlements

Abstract: This paper investigates the effects of macroprudential policies on bank risk through a large panel of banks operating in 61 advanced and emerging market economies. There are three main findings. First, there is evidence suggesting that macroprudential tools have a significant impact on bank risk. Second, the responses to changes in macroprudential tools differ among banks, depending on their specific balance sheet characteristics. In particular, banks that are small, weakly capitalised and with a higher share of wholesale funding react more strongly to changes in macroprudential tools. Third, controlling for bank-specific characteristics, macroprudential policies are more effective in a tightening than in an easing episode.

Keywords: Macroprudential policies; effectiveness; bank risk (search for similar items in EconPapers)
JEL-codes: E43 E58 G18 G28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cba and nep-mac
Date: 2017-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.bis.org/publ/work646.pdf Full PDF document (application/pdf)
http://www.bis.org/publ/work646.htm (text/html)

Related works:
Journal Article: Macroprudential policy and bank risk (2018) Downloads
Working Paper: Macroprudential policy and bank risk (2017) 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:646

Access Statistics for this paper

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

 
Page updated 2019-04-12
Handle: RePEc:bis:biswps:646