Effectiveness of Macroprudential and Capital Flow Measures in Asia and the Pacific

8 Pages Posted: 19 Oct 2015

See all articles by Valentina Bruno

Valentina Bruno

American University - Department of Finance and Real Estate

Ilhyock Shim

Bank for International Settlements (BIS)

Hyun Song Shin

Bank for International Settlements (BIS)

Date Written: October 2015

Abstract

We assess the effectiveness of macroprudential policies in 12 Asia-Pacific economies, using comprehensive databases of capital flow measures (CFMs) and domestic macroprudential measures. We show that banking sector CFMs and bond market CFMs are effective in slowing down banking inflows and bond inflows, respectively. Our findings also provide some evidence of spillover effects from these types of CFM. Finally, we find that domestic macroprudential measures have insignificant effects on cross-border lending, bank credit and total credit.

Full publication: Cross-Border Financial Linkages: Challenges for Monetary Policy and Financial Stability

Keywords: banking inflow, bond inflow, domestic macroprudential measure, capital flow measure

JEL Classification: F34, G15, G28

Suggested Citation

Bruno, Valentina Giulia and Shim, Ilhyock and Shin, Hyun Song, Effectiveness of Macroprudential and Capital Flow Measures in Asia and the Pacific (October 2015). BIS Paper No. 82k. Available at SSRN: https://ssrn.com/abstract=2668717

Valentina Giulia Bruno (Contact Author)

American University - Department of Finance and Real Estate ( email )

Kogod School of Business
4400 Massachusetts Ave., N.W.
Washington, DC 20016-8044
United States

HOME PAGE: http://www.american.edu/kogod/faculty/bruno.cfm

Ilhyock Shim

Bank for International Settlements (BIS) ( email )

78F, Two International Finance Centre
8 Finance Street, Central
Hong Kong, n/a n/a
Hong Kong

HOME PAGE: http://www.bis.org/author/ilhyock_shim.htm

Hyun Song Shin

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

HOME PAGE: http://www.bis.org/author/hyun_song_shin.htm

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