Credit Growth and the Effectiveness of Reserve Requirements and Other Macroprudential Instruments in Latin America.
Title:
Credit Growth and the Effectiveness of Reserve Requirements and Other Macroprudential Instruments in Latin America.
Author:
Fund, International Monetary.
ISBN:
9781475581850
Personal Author:
Physical Description:
1 online resource (30 pages)
Series:
IMF Working Papers
Contents:
Cover -- Contents -- I. Introduction -- II. Reserve Requirements as a Macroprudential Tool -- III. Literature Review -- A. Some Theoretical Considerations -- B. The Recent Latin American Experience -- C. Recent Empirical Literature on the Latin America Experience -- IV. Empirical Analysis -- A. Event Analysis -- B. Dynamic Panel Vector Autoregression -- V. Conclusions -- References -- Table -- 1. Recent Macroprudential Measures -- Figures -- 1. Reserve Requirements on Banks Liabilities -- 2. Effects of Reserve Requirements when Financial Intermediation Involves a Competitive Loan Market and Market Power in the Deposit Market -- 3. Effects of Reserve Requirements when Financial Intermediation Involves a Competitive Deposit Market and Market Power in the Loan Market -- 4. Credit Dynamics and Interest Rates -- 5. Reserve Requirements in Brazil -- 6. Reserve Requirements in Colombia -- 7. Reserve Requirements in Peru -- 8 Latin America: Average and Marginal Reserve Requirements -- 9. Impact of RRs and other Macroprudential Measures on Private Credit Growth -- 10. Impulse Response of Private Credit Growth to Macroprudential Policy Shocks -- 11. Complementary Role of Macroprudential Policies and Reserve Requirements.
Abstract:
Over the past decade policy makers in Latin America have adopted a number of macroprudential instruments to manage the procyclicality of bank credit dynamics to the private sector and contain systemic risk. Reserve requirements, in particular, have been actively employed. Despite their widespread use, little is known about their effectiveness and how they interact with monetary policy. In this paper, we examine the role of reserve requirements and other macroprudential instruments and report new cross-country evidence on how they influence real private bank credit growth. Our results show that these instruments have a moderate and transitory effect and play a complementary role to monetary policy.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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Electronic Access:
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