Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249949 
Year of Publication: 
2021
Citation: 
[Journal:] Review of Economic Perspectives [ISSN:] 1804-1663 [Volume:] 21 [Issue:] 3 [Publisher:] De Gruyter [Place:] Warsaw [Year:] 2021 [Pages:] 259-290
Publisher: 
De Gruyter, Warsaw
Abstract: 
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.
Subjects: 
Macroprudential policy
macroprudential instruments
systemic risk
finan-cial stability
JEL: 
E58
G28
E60
E44
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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