Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208319
Authors: 
Franch, Fabio
Nocciola, Luca
┼╗ochowski, Dawid
Year of Publication: 
2019
Series/Report no.: 
ECB Working Paper No. 2285
Abstract: 
We analyse the cross-border propagation of prudential regulation in the euro area. Using the Prudential Instruments Database (Cerutti et al., 2017b) and a unique confidential database on balance sheets items of euro-area financial institutions we estimate panel models for 248 banks from 16 euro-area countries. We find that domestic banks reduce lending after the tightening of capital requirements in other countries, while they increase lending when loan-to-value (LTV) limits or reserve requirements are tightened abroad. We also find that foreign affiliates increase lending following the tightening of sector-specific capital buffers in the countries where their parent banks reside and that bank size and liquidity play a role in determining the magnitude of cross-border spillovers.
Subjects: 
prudential policy
cross-border spillovers
international banking
JEL: 
G21
F34
F36
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3547-0
Document Type: 
Working Paper

Files in This Item:
File
Size
599.53 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.