Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?

<p dir="ltr">This paper investigates the complementarity between the different macroprudential policies to contain bank systemic risk. We use a newly updated version of the IMF survey on Global Macroprudential Policy Instruments (GMPI). By disentangling the aggregate macroprudential...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Nicholas Apergis (3028428) (author)
مؤلفون آخرون: Ahmet F. Aysan (17191270) (author), Yassine Bakkar (17191273) (author)
منشور في: 2022
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author Nicholas Apergis (3028428)
author2 Ahmet F. Aysan (17191270)
Yassine Bakkar (17191273)
author2_role author
author
author_facet Nicholas Apergis (3028428)
Ahmet F. Aysan (17191270)
Yassine Bakkar (17191273)
author_role author
dc.creator.none.fl_str_mv Nicholas Apergis (3028428)
Ahmet F. Aysan (17191270)
Yassine Bakkar (17191273)
dc.date.none.fl_str_mv 2022-09-01T00:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.intfin.2022.101648
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Borrower-_and_lender-based_macroprudential_policies_What_works_best_against_bank_systemic_risk_/24551326
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Systemic risk
Macroprudential policies
Complementarity
Monetary policy
Financial stability
dc.title.none.fl_str_mv Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">This paper investigates the complementarity between the different macroprudential policies to contain bank systemic risk. We use a newly updated version of the IMF survey on Global Macroprudential Policy Instruments (GMPI). By disentangling the aggregate macroprudential policy index, we assess the complementarity between borrower-targeted and lender-targeted instruments in mitigating systemic risk arising from intra-financial system vulnerabilities. We investigate the effect of boom-bust cycle on such a relationship by analyzing the financial upturns and downturns and show the effectiveness of the macroprudential policies during calm period. We also show that their efficacy in mitigating instability is quite heterogeneous and may vary depending on the set of tools implemented, as well as bank’ size, TBTF, leverage, liquidity and concentration. Our results bear critical policy implications for implementing optimal macroprudential tools and provide insights into the trade-off between financial <i>vis-à-vis</i> price stability.</p><h2>Other Information</h2><p dir="ltr">Published in: Journal of International Financial Markets, Institutions and Money<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.intfin.2022.101648" target="_blank">https://dx.doi.org/10.1016/j.intfin.2022.101648</a></p>
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spelling Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?Nicholas Apergis (3028428)Ahmet F. Aysan (17191270)Yassine Bakkar (17191273)Commerce, management, tourism and servicesBanking, finance and investmentEconomicsEconometricsSystemic riskMacroprudential policiesComplementarityMonetary policyFinancial stability<p dir="ltr">This paper investigates the complementarity between the different macroprudential policies to contain bank systemic risk. We use a newly updated version of the IMF survey on Global Macroprudential Policy Instruments (GMPI). By disentangling the aggregate macroprudential policy index, we assess the complementarity between borrower-targeted and lender-targeted instruments in mitigating systemic risk arising from intra-financial system vulnerabilities. We investigate the effect of boom-bust cycle on such a relationship by analyzing the financial upturns and downturns and show the effectiveness of the macroprudential policies during calm period. We also show that their efficacy in mitigating instability is quite heterogeneous and may vary depending on the set of tools implemented, as well as bank’ size, TBTF, leverage, liquidity and concentration. Our results bear critical policy implications for implementing optimal macroprudential tools and provide insights into the trade-off between financial <i>vis-à-vis</i> price stability.</p><h2>Other Information</h2><p dir="ltr">Published in: Journal of International Financial Markets, Institutions and Money<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.intfin.2022.101648" target="_blank">https://dx.doi.org/10.1016/j.intfin.2022.101648</a></p>2022-09-01T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.intfin.2022.101648https://figshare.com/articles/journal_contribution/Borrower-_and_lender-based_macroprudential_policies_What_works_best_against_bank_systemic_risk_/24551326CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/245513262022-09-01T00:00:00Z
spellingShingle Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?
Nicholas Apergis (3028428)
Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Systemic risk
Macroprudential policies
Complementarity
Monetary policy
Financial stability
status_str publishedVersion
title Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?
title_full Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?
title_fullStr Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?
title_full_unstemmed Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?
title_short Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?
title_sort Borrower- and lender-based macroprudential policies: What works best against bank systemic risk?
topic Commerce, management, tourism and services
Banking, finance and investment
Economics
Econometrics
Systemic risk
Macroprudential policies
Complementarity
Monetary policy
Financial stability