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Assessment of the effectiveness of the macroprudential measures implemented in the context of the Covid-19 pandemic

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  • Avezum, Lucas
  • Oliveira, Vítor
  • Serra, Diogo

Abstract

In this paper, we assess the effectiveness of the macroprudential capital buffers’ release on loans granted to households, implemented in the context of the Covid-19 pandemic. Using the synthetic control method, we find evidence that the buffers releases contributed, on average, to mitigate the procyclicality of credit to households, specifically for house purchase and for small businesses purposes. For the aggregate household lending, we find positive average treatment effects for both the release of the CCyB and the SyRB. However, the results suggest that, for credit associated with small businesses purposes, only the release of the CCyB had an effect.

Suggested Citation

  • Avezum, Lucas & Oliveira, Vítor & Serra, Diogo, 2024. "Assessment of the effectiveness of the macroprudential measures implemented in the context of the Covid-19 pandemic," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 1542-1555.
    • Handle: RePEc:eee:reveco:v:93:y:2024:i:pa:p:1542-1555
    DOI: 10.1016/j.iref.2024.03.082
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    1. Carlos Giraldo & Iader Giraldo-Salazar & Jose E. Gomez-Gonzalez & Jorge M Uribe, 2025. "The Disappearance of Bank Capital Pro-Cyclicality in Emerging and Low-Income Economies under Basel III," Documentos de trabajo 021826, FLAR.

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    Keywords

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    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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