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The impact of macroprudential policies on industrial growth

Author

Listed:
  • Madeira, Carlos

    (Bank for International Settlements
    Central Bank of Chile)

Abstract

This paper analyzes the causal impact of macroprudential policies on growth, using industry-level data for 93 countries to overcome reverse-causality issues. Data on individual industries is required for identification, because national regulators care about the total GDP but not about the product of small economic sectors. I find that macroprudential tightening have a negative impact on manufacturing growth, especially in the long-term and for industries with high external finance dependence. This impact is stronger in periods of higher growth and for advanced economies. Supply of capital prudential policies have a larger impact on manufacturing growth.

Suggested Citation

  • Madeira, Carlos, 2023. "The impact of macroprudential policies on industrial growth," Working Papers 2023-012, Banco Central de Reserva del Perú.
    • Handle: RePEc:rbp:wpaper:2023-012
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    2. Madeira, Carlos, 2024. "The impact of macroprudential policies on industrial growth," Journal of International Money and Finance, Elsevier, vol. 145(C).
    3. E. Philip Davis & Dilruba Karim & Dennison Noel, 2025. "The determination of bank interest rate margins: Is there a role for macroprudential policy?," Journal of Banking Regulation, Palgrave Macmillan, vol. 26(3), pages 433-463, September.
    4. Madeira, Carlos, 2025. "The impact of financial crises on industrial growth in the Middle East and North Africa," Global Finance Journal, Elsevier, vol. 65(C).
    5. Carlos Madeira, 2024. "The impact of financial crises on industrial growth: lessons from the last 40 years," BIS Working Papers 1214, Bank for International Settlements.
    6. Carlos Madeira, 2023. "The evolution of macroprudential policy use in Chile, Latin America and the OECD," Journal of Banking Regulation, Palgrave Macmillan, vol. 24(3), pages 357-380, September.
    7. Karlström, Peter, 2025. "Macroprudential policy and systemic risk: The role of corporate and household credit booms," Journal of Financial Stability, Elsevier, vol. 78(C).
    8. Carlos Giraldo & Iader Giraldo-Salazar & Jose E. Gomez-Gonzalez & Jorge M. Uribe, 2025. "The Impact of Colombia’s Gross Leverage Position in Foreign Exchange Derivatives on Housing Market Stability," Documentos de trabajo 21366, FLAR.
    9. Henry Penikas, 2021. "Review of Bank of Russia – NES Workshop 'Identification and Measurement of Macroprudential Policies Effects'," Russian Journal of Money and Finance, Bank of Russia, vol. 80(3), pages 94-104, September.
    10. Mikhail I. Stolbov & Maria A. Shchepeleva & Alexander M. Karminsky, 2021. "A global perspective on macroprudential policy interaction with systemic risk, real economic activity, and monetary intervention," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-25, December.
    11. Kerola, Eeva & Norring, Anni, 2025. "Effect of the countercyclical capital buffer on firm loans: Evidence from Germany," Bank of Finland Research Discussion Papers 8/2025, Bank of Finland.
    12. Bambe, Bao-We-Wal, 2025. "Macroprudential policies and private domestic investment in developing countries: An instrumental variables approach," IDOS Discussion Papers 3/2025, German Institute of Development and Sustainability (IDOS).

    More about this item

    Keywords

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    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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