The impact of seven macroprudential policy instruments on financial stability in six euro area economies

Artikel

The aim of this paper is to investigate whether macroprudential policy instru-ments can influence the credit growth rate and hence financial stability. We use a fixed effects panel regression model to test the following hypothesis for six euro area econo-mies (Austria, Finland, Germany, Italy, Netherlands and Spain) during time span 2010 Q3 to 2018 Q4: "Macroprudential policy instruments (degree of maturity mismatch; in-terbank loans as a percentage of total loans; leverage ratio; non-deposit funding as a per-centage of total funding; loan-to-value ratio; loan-to-deposit ratio; solvency ratio) en-hance financial stability, as measured by credit growth". Our empirical results suggest that the degree of maturity mismatch, non-deposit funding as a percentage of total funding, loan-to-value ratio and loan-to-deposit ratio exhibit the predicted impact on the credit growth rate and therefore on financial stability. On the other hand, interbank loans as a percentage of total loans, leverage ratio, and solvency ratio do not exhibit the expected impact on the response variable. Since only four regressors (out of seven) have the signs predicted by our hypothesis, we can only partly confirm it.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Review of Economic Perspectives ; ISSN: 1804-1663 ; Volume: 21 ; Year: 2021 ; Issue: 3 ; Pages: 259-290 ; Warsaw: De Gruyter

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Central Banks and Their Policies ; Financial Institutions and Services: Government Policy and Regulation ; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General ; Financial Markets and the Macroeconomy
• Thema: Macroprudential policy ; macroprudential instruments ; systemic risk ; finan-cial stability

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Lorenčič, Eva ; Festić, Mejra
• Ereignis: Veröffentlichung
• (wer): De Gruyter
• (wo): Warsaw
• (wann): 2021

Weitere Informationen

• DOI: doi:10.2478/revecp-2021-0012
• Handle: http://hdl.handle.net/10419/249949
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ