Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323611 
Year of Publication: 
2022
Citation: 
[Journal:] Economic Modelling [ISSN:] 1873-6122 [Volume:] 112 [Article No.:] 105872 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2022 [Pages:] 1-19
Publisher: 
Elsevier, Amsterdam
Abstract: 
The global financial crisis (GFC) triggered the use of macroprudential policies imposed on the banking sector. Using bank-level panel data for Israel for the period 2004–2019, we find that domestic macroprudential measures changed the composition of bank credit growth but did not affect the total credit growth rate. Specifically, we show that macroprudential measures targeted at the housing sector moderated housing credit growth but tended to increase business credit growth. We also find that accommodative monetary policy surprises tended to increase bank credit growth before the GFC. We show that accommodative monetary policy surprises increased consumer credit when interacting with macroprudential policies targeting the housing market. Accommodative monetary policy interacted with nonhousing macroprudential measures to increase total credit.
Subjects: 
Financial stability
Policy evaluation
Banking sector
Credit markets
Regulation
Global financial crisis
Prudential policy
Banking system
JEL: 
E51
E52
E58
G01
G21
G28
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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