Monetary and macroprudential policy complementarities: Evidence from European credit registers

Carlo Altavilla, Luc Laeven and Jose-Luis Peydro

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We show strong complementarities between monetary and macroprudential policies in influencing credit. We exploit credit register data - crucially from multiple (European) countries and for both corporate and household credit - in conjunction with monetary policy surprises and indicators of macroprudential policy actions. Expansive monetary policy boosts lending more in accommodative macroprudential environments. This complementary effect of monetary and macroprudential policy is stronger for: (i) expansionary (as opposed to contractionary) monetary policy; (ii) riskier borrowers; (iii) less capitalized banks (especially when lending to riskier borrowers); (iv) consumer and corporate loans (rather than mortgages); and (v) more (ex-ante) productive firms (especially for less capitalized banks).

Keywords: credit registers; household loans; corporate loans; monetary policy; macroprudential policy (search for similar items in EconPapers)
JEL-codes: E58 G21 G28 G32 G51 (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-ban, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Monetary and Macroprudential Policy Complementarities: Evidence from European Credit Registers (2021)
Working Paper: Monetary and Macroprudential Policy Complementarities: Evidence from European Credit Registers (2021)
Working Paper: Monetary and Macroprudential Policy Complementarities: evidence from European credit registers (2020)
Working Paper: Monetary and macroprudential policy complementarities: evidence from European credit registers (2020)
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