Macroprudential policies and global banking
| dc.contributor.author | Doriane, Intungane | |
| dc.date.accessioned | 2025-06-13T14:34:15Z | |
| dc.date.available | 2025-06-13T14:34:15Z | |
| dc.date.issued | 2024 | |
| dc.description.abstract | This paper examines the ability of macroprudential policies to dampen the pro-cyclicality of credit market cycles and to enhance the macroeconomic stability in countries open to cross-border banking activities. For the analysis, we develop a two-country dynamic stochastic general equilibrium model with collateral constrained investors and global banks. The existence of cross-border lending activities is the source of the transmission of shocks across countries. The macroprudential policies analyzed are loan-to-value ratios and capital requirements, also known as the capital adequacy ratio, which are formulated as Taylor-type rules. Our results show that the effectiveness of capital requirement financial regulations is undermined if borrowers can increase credit from foreign banks originating from a country with more relaxed financial restrictions. When cross-border lending is permitted, national financial regulators can improve the financial stability of credit growth and management of credit by complementing the capital adequacy ratios with loan-to-value ratios. | |
| dc.description.uri | https://macewan.primo.exlibrisgroup.com/permalink/01MACEWAN_INST/d1nmsu/cdi_crossref_primary_10_1007_s11079_024_09778_1 | |
| dc.identifier.citation | Intungane, D. (2024). Macroprudential Policies and Global Banking. Open Economies Review. https://doi.org/10.1007/s11079-024-09778-1 | |
| dc.identifier.doi | https://doi.org/10.1007/s11079-024-09778-1 | |
| dc.identifier.uri | https://hdl.handle.net/20.500.14078/3972 | |
| dc.language.iso | en | |
| dc.rights | All Rights Reserved | |
| dc.subject | macroprudential policy | |
| dc.subject | international | |
| dc.subject | banking system | |
| dc.subject | systemic risks | |
| dc.subject | policy complementarity | |
| dc.title | Macroprudential policies and global banking | en |
| dc.type | Article |