Effectiveness of Macroprudential Policies in Developing Asia: An Empirical Analysis

Minsoo Lee, Ruben Carlo Asuncion () and Jungsuk Kim ()
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Ruben Carlo Asuncion: Asian Development Bank
Jungsuk Kim: Sogang University

No 439, ADB Economics Working Paper Series from Asian Development Bank

Abstract: The global financial crisis highlighted the need for national bank supervisory authorities to improve surveillance systems and to detect early on the buildup of macroeconomic risks that could threaten the entire financial system. This paper presents an empirical framework for analyzing how effective macroprudential policies control credit growth, leverage growth, and housing price appreciation. Two significant findings emerge. Broadly, macroprudential policies can indeed promote financial stability in Asia. More specifically, different types of macroprudential policies are more effective against different types of macroeconomic risks.

Keywords: developing Asia; financial stability; macroprudential policy (search for similar items in EconPapers)
JEL-codes: G01 G28 L51 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2015-07-01
New Economics Papers: this item is included in nep-ban, nep-cba and nep-sea
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Citations: View citations in EconPapers (7)

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Journal Article: Effectiveness of Macroprudential Policies in Developing Asia: An Empirical Analysis (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0439

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