Credit Growth and Macroprudential Policies: Preliminary Evidence on the Firm Level

20 Pages Posted: 29 Apr 2017

See all articles by Meghana Ayyagari

Meghana Ayyagari

George Washington University - School of Business

Thorsten Beck

City University London - Sir John Cass Business School; Tilburg University - European Banking Center, CentER

Maria Soledad Martinez Peria

International Monetary Fund (IMF)

Date Written: March 2017

Abstract

Combining data on 1.3 million firms from 2002 to 2011 operating in 59 countries with changes in macroprudential regulations over this period, we find some evidence that macroprudential policies are associated with lower credit growth, especially for small firms with limited non-bank financing. We also find an impact of macroprudential policies on young firms in emerging markets. Our results point to an important tradeoff in financial stability and financial deepening.

Full Publication: Financial Systems and the Real Economy

Keywords: financial development, macroprudential policies, firm financing

JEL Classification: E44, E58, G18, G28

Suggested Citation

Ayyagari, Meghana and Beck, Thorsten and Martinez Peria, Maria Soledad, Credit Growth and Macroprudential Policies: Preliminary Evidence on the Firm Level (March 2017). BIS Paper No. 91a. Available at SSRN: https://ssrn.com/abstract=2945011

Meghana Ayyagari (Contact Author)

George Washington University - School of Business ( email )

Washington, DC 20052
United States

Thorsten Beck

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Tilburg University - European Banking Center, CentER ( email )

PO Box 90153
Tilburg, 5000 LE
Netherlands

Maria Soledad Martinez Peria

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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