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Macroprudential regulation and bank behaviour: theory and evidence from a quasi-natural experiment

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  • Saibal Ghosh

Abstract

The article examines the impact of macroprudential policies on bank credit growth. Towards this end, we develop a model of bank behaviour which examines the possible impact of such policies. The testable propositions of the model are empirically examined using a natural experiment for India. The results appear to suggest that macroprudential policies interact with bank ownership to moderate the severity of the credit cycle.

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  • Saibal Ghosh, 2015. "Macroprudential regulation and bank behaviour: theory and evidence from a quasi-natural experiment," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 8(1-2), pages 138-159, July.
    • Handle: RePEc:taf:macfem:v:8:y:2015:i:1-2:p:138-159
    DOI: 10.1080/17520843.2014.983533
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    Cited by:

    1. Ghosh, Saibal, 2017. "Does central bank governors term in office matter for macroprudential policies? Evidence from MENA banks," Research in International Business and Finance, Elsevier, vol. 40(C), pages 34-51.

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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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