Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/170730
Authors: 
Becker, Christian
Ossandon Busch, Matias
Tonzer, Lena
Year of Publication: 
2017
Series/Report no.: 
IWH Discussion Papers 21/2017
Abstract: 
This paper examines whether intra-group dynamics matter for the transmission of macroprudential policy. Using novel bank-level data on the Brazilian banking system, we investigate the effect of reserve requirements targeting headquarter banks' deposit share on credit supply by their municipal bank branches. For identification purposes, we exploit that reserve requirements are adjusted following global economic cycles. Our results reveal a lending channel of reserve requirements for branches whose parent banks are more exposed to targeted deposits. Branch ownership and exposure to internal liquidity are central in explaining the results. Our findings reveal limitations in current macroprudential policy frameworks.
Subjects: 
macroprudential regulation
financial intermediation
intra-group dynamics
JEL: 
F30
F65
G21
G28
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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