How Effective are Macroprudential Policies in Asiapacific? Evidence from a Meta-Analysis

13 Pages Posted: 19 Mar 2020

See all articles by Carlos Cantú

Carlos Cantú

Bank for International Settlements (BIS) - Representative Office for the Americas

Leonardo Gambacorta

Bank for International Settlements (BIS); Centre for Economic Policy Research (CEPR)

Ilhyock Shim

Bank for International Settlements (BIS)

Date Written: February 19, 2020

Abstract

This paper evaluates the effectiveness of macroprudential policies in five Asia-Pacific countries (Australia, Indonesia, New Zealand, the Philippines and Thailand). We use supervisory bank-level data and apply a common empirical strategy. We find that macroprudential policies are effective in reducing excessive household credit growth. Additionally, a tightening in macroprudential policy has a stronger effect than an easing. We also find that banks’ size and liquidity influence the effect of macroprudential policy on credit growth. Finally, macroprudential policy is effective in reducing bank risk as measured by the non-performing loan ratio.

Full Publication: Measuring the Effectiveness of Macroprudential Policies Using Supervisory Bank-Level Data

Keywords: macroprudential policy, household credit, bank-level data, meta-analysis

JEL Classification: E51, E58 G18, G28

Suggested Citation

Cantú García, Carlos and Gambacorta, Leonardo and Shim, Ilhyock, How Effective are Macroprudential Policies in Asiapacific? Evidence from a Meta-Analysis (February 19, 2020). BIS Paper No. 110b, Available at SSRN: https://ssrn.com/abstract=3551497

Carlos Cantú García (Contact Author)

Bank for International Settlements (BIS) - Representative Office for the Americas ( email )

Switzerland

Leonardo Gambacorta

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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

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