Arbeitspapier

The spillovers, interactions, and (un)intended consequences of monetary and regulatory policies

Have bank regulatory policies and unconventional monetary policies - and any possible interactions - been a factor behind the recent "deglobalisation" in cross-border bank lending? To test this hypothesis, we use bank-level data from the United Kingdom - a country at the heart of the global financial system. Our results suggest that increases in microprudential capital requirements tend to reduce international bank lending and some forms of unconventional monetary policy can amplify this effect. Specifically, the United Kingdom's Funding for Lending Scheme (FLS) significantly amplified the effects of increased capital requirements on external lending. Quantitative easing may also have had an amplification effect, but these estimates are usually insignificant and smaller in magnitude. We find that this interaction between microprudential regulations and the FLS can explain roughly 30% of the contraction in aggregate UK cross-border bank lending between mid-2012 and end-2013, corresponding to around 10% of the contraction globally. This suggests that unconventional monetary policy designed to support domestic lending can have the unintended consequence of reducing foreign lending.

Sprache
Englisch

Erschienen in
Series: External MPC Unit Discussion Paper ; No. 44

Klassifikation
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Thema
Capital requirements
Funding for Lending Scheme
financial deglobalisation
Bankenregulierung
Quantitative Lockerung
Geldpolitik
Wirkungsanalyse
Internationaler Kredit
Großbritannien
Spillover-Effekt
Internationaler Finanzmarkt
Welt

Ereignis
Geistige Schöpfung
(wer)
Forbes, Kristin
Reinhardt, Dennis
Wieladek, Tomasz
Ereignis
Veröffentlichung
(wer)
Bank of England, External Monetary Policy Committee Unit
(wo)
London
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Forbes, Kristin
  • Reinhardt, Dennis
  • Wieladek, Tomasz
  • Bank of England, External Monetary Policy Committee Unit

Entstanden

  • 2016

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