Abstract
This paper investigates the impact of different country-traits of the effects of macroprudential policies on systemic risks in OECD countries. The analysis documents that institutional quality, high capital stringency, and moderate supervision support macroprudential policies in mitigating systemic risks, depending on macroprudential instruments in force. Institutional, regulatory and supervisory frameworks differently affect the effectiveness of lender- vis-à-vis borrower-targeted policies.
Original language | English |
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Article number | 110123 |
Journal | Economics Letters |
Volume | 209 |
DOIs | |
Publication status | Published - Dec 2021 |
Keywords
- Bank regulation
- Institutional settings
- Macroprudential policy
- Systemic risks