 Prudential policy spillovers: how do international bank flows react to French policies?Stephane Dees and Julio Ramos-Tallada () Post-Print from HAL Abstract: Most of prudential regulations apply to national institutions while, in practice, banks operate at the global level, generating international banking flows which are not comprehensively captured by policies with a domestic remit. This may give rise to spillovers, i.e., effects not considered ex ante in the objectives and/or constraints of authorities in charge of prudential policy, the effec- tiveness of which may be harmed. Using BIS data on foreign bank lending over a large sample of countries, we investigate international spillovers from French prudential policies. Overall, we show that French prudential policies entail a reduction in foreign banks' lending to French resi- dents. Yet some measures may lead to undesired leakages that potentially undermine authorities' goals: foreign bank affiliates' exposure to France rose by 1.1% (1.9 Bn USD) on average over 2011–17 owing to the implementation of Basel capital requirements. Keywords: International banking; International spillovers; Prudential regulation (search for similar items in EconPapers) Published in International Economics, 2021, ⟨10.1016/j.inteco.2021.09.001⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03671247 DOI: 10.1016/j.inteco.2021.09.001 Access Statistics for this paper More papers in Post-Print from HAL |
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