Cross-border effects of regulatory spillovers: Evidence from Mexico

• 成果类型: Article
• 署名作者: Tripathy, Jagdish
• 署名单位: Bank of England
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2020.103350
• 发表日期: 2020
• 关键词: Regulatory spillovers; Capital shock; Household credit; Non-tradable sector

摘要

This paper studies the spillover of a macroprudential regulation in Spain to the Mexican financial system via Mexican subsidiaries of Spanish banks. The spillover caused a drop in the supply of household credit in Mexico. Municipalities with a higher exposure to Spanish subsidiaries experienced a larger contraction in household credit. These localized contractions caused a drop in macroeconomic activity in the local non-tradable sector. Estimates of the elasticity of loan demand by the non-tradable sector to changes in household credit supply range from 1.2-1.8. These results emphasize cross-border effects of regulations in the presence of global banks. (C) 2020 Published by Elsevier B.V.