The spillovers, interactions, and (un)intended consequences of monetary and regulatory policies

• 成果类型: Article
• 署名作者: Forbes, Kristin; Reinhardt, Dennis; Wieladek, Tomasz
• 署名单位: Bank of England; Massachusetts Institute of Technology (MIT); National Bureau of Economic Research; Bank of England; Barclays
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.10.008
• 发表日期: 2017
• 页码: 1-22
• 关键词: Capital requirements; Funding for Lending Scheme; Financial deglobalisation

摘要

Have bank regulatory policies and unconventional monetary policies and any possible interactions been a factor behind the recent deglobalisation in cross-border bank lending? To test this hypothesis, we use banic-level data from the UK-a country at the heart of the global financial system. Our results suggest that increases in microprudential capital requirements tend to reduce international bank lending and some forms of unconventional monetary policy can amplify this effect. Specifically, the UK's Funding for Lending Scheme (FLS) significantly amplified the effects of increased capital requirements on cross-border lending. Quantitative easing did not appear to have a similar effect and countries with stronger prudential capital regulations were partially insulated against the effects of these changes in UK policy. We find that this interaction between micro prudential regulations and the FLS can explain roughly 30% of the contraction in aggregate UK cross-border bank lending between mid-2012 and end-2013, corresponding to around 10% of the global contraction in cross-border lending. This suggests that unconventional monetary policy designed to support domestic lending can have the unintended consequence of reducing foreign lending. (C) 2016 The Authors. Published by Elsevier B.V. All rights reserved.