IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-030-73667-5_9.html
   My bibliography  Save this book chapter

Does Competition Matter for the Effects of Macroprudential Policy on Bank Asset Growth?

In: Contemporary Trends and Challenges in Finance

Author

Listed:
  • Małgorzata Olszak

    (University of Warsaw)

  • Iwona Kowalska

    (University of Warsaw)

Abstract

This paper attempts to find out what is the role of competition in the effects of macroprudential policy in a cross-country sample of over 9000 commercial banks in the period of 2004–2016. We focus on two areas of work of macroprudential policy that may be potentially affected by competition. The first one is the area of asset growth. The other is procyclicality proxied with the link between bank asset growth and business cycle. Our results show that competitive environment in the banking industry does affect the conduct of macroprudential policy. High competition is associated with increased asset growth in countries applying more macroprudential policy instruments affecting risk taking by banks. The association between competition and effects of macroprudential policy on sensitivity of asset growth to business cycle differs between cyclical and resilience oriented tools. Intense competition in the banking industry is associated with decreased procyclicality of assets growth in countries using cyclical instruments. In contrast, more competitive banking industry is associated with increased procyclicality of asset growth in countries using resilience-oriented tools.

Suggested Citation

  • Małgorzata Olszak & Iwona Kowalska, 2021. "Does Competition Matter for the Effects of Macroprudential Policy on Bank Asset Growth?," Springer Proceedings in Business and Economics, in: Krzysztof Jajuga & Hermann Locarek-Junge & Lucjan T. Orlowski & Karsten Staehr (ed.), Contemporary Trends and Challenges in Finance, pages 139-168, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-73667-5_9
    DOI: 10.1007/978-3-030-73667-5_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-030-73667-5_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.