Macroprudential regulation and bank behavior: Theory and evidence from a quasi-natural experiment

Saibal Ghosh

MPRA Paper from University Library of Munich, Germany

Abstract: The paper examines the impact of macroprudential policies on bank credit growth. Towards this end, we develop a model of bank behavior which examines the possible impact of such policies. The testable propositions of the model are empirically examined using a natural experiment for India. The results appear to suggest that macroprudential policies interact with bank ownership to moderate the severity of the credit cycle.

Keywords: Macroprudential policies; Banking; India; Risk weights; Provisions (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2014-12
New Economics Papers: this item is included in nep-cba
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Published in Macroeconomics and Finance in Emerging Market Economies 1-2.8(2015): pp. 138-159

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:65214

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