How does the interaction of macroprudential and monetary policies affect cross-border bank lending?

• 成果类型: Article
• 署名作者: Takats, Elod; Temesvary, Judit
• 署名单位: Bank for International Settlements (BIS); University of London; London School Economics & Political Science; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2021.103521
• 发表日期: 2021
• 关键词: Monetary policy Macroprudential policy Cross-border claims Diff-in-diff

摘要

We combine a rarely accessed BIS database on cross-border lending flows with cross-country data on macroprudential regulations. We find significant interactions between the monetary policy of major international currency issuers (USD, EUR and JPY) and macroprudential policies in source (home) lending banking systems. Consistent with the bank lending channel, macroprudential easing in a home country amplifies the effect of currency issuers' monetary policy on lending. For instance, UK macroprudential easing amplifies the negative impact of US monetary policy tightening on USD-denominated cross-border bank lending outflows from UK banks. Vice versa, tighter macroprudential policy mitigates these effects.. Published by Elsevier B.V.