Macroprudential policies, capital flows, and the structure of the banking sector

Beirne, John; Friedrich, Christian

doi:10.1016/j.jimonfin.2017.04.004

Cited by 50 publications

(32 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This extends findings in the literature that focus on the effect of policies on mean capital flows (e.g. Hoggarth et al (2016) and Beirne and Friedrich (2017)). However, it is in contrast to Gelos et al (2019) who find little evidence on the effectiveness of such policies on the tail of capital flows.…”

Section: Related Literaturesupporting

confidence: 82%

Capital Flows-at-Risk: Push, Pull and the Role of Policy

et al. 2020

View full text Add to dashboard Cite

We characterise the probability distribution of capital flows for a panel of emerging market economies conditional on information contained in financial asset prices, with a focus on 'tail' events. Our framework, based on the quantile regression methodology, allows for a separate role of push and pull-type factors, and offers insights into the term-structure of these effects. We find that both push and pull factors have heterogeneous effects across the distribution of capital flows, with the strongest reactions in the left tail. Also, the effect of changes in pull factors is more persistent than that of push factors. Finally, we explore the role of policy, and find that macroprudential and capital flow management measures are associated with changes in the distribution of capital flows.

show abstract

Section: Related Literaturesupporting

confidence: 82%

Capital Flows-at-Risk: Push, Pull and the Role of Policy

et al. 2020

View full text Add to dashboard Cite

show abstract

“…7 Several papers documenting these leakages of regulations to other sectors are: Aiyar et al (2014), Reinhardt and Sowerbutts (2015), Cerutti et al (2015) and Agénor and da Silva (2017). Papers documenting the international spillovers when regulations or capital controls in one country deflect capital flows to others are: Ghosh et al (2014), Giordani et al (2014), Pasricha et al (2015), Forbes et al (2016), Beirne and Friedrich (2017), and Kang et al (2017).…”

Section: Introductionmentioning

confidence: 99%

Macroprudential FX Regulations: Shifting the Snowbanks of FX Vulnerability?

et al. 2018

Self Cite

View full text Add to dashboard Cite

for outstanding research assistance and to Jérôme Vandenbussche, Ursula Vogel, and Enrica Detragiache for sharing their data. The views in this paper are those of the authors and do not necessarily represent the views of any institution with which they are affiliated. cross-border bank FX borrowing by more than half. At the same time, corporates increase FX debt issuance by about 10% of median annual FX debt issuance for the full sample, equivalent to a 15%-20% increase in FX corporate debt issuance for countries such as Brazil and Indonesia. Overall, our findings inform the policy debate on macroprudential regulations and highlight the need to assess their full impact on the economy.

show abstract

“…Cardoso and Goldfajn (1998), Carvalho and Garcia (2008), and Jinjarak et al (2013) showed that direct CFMs in Brazil had only a temporary effect. Beirne and Friedrich (2017) examined the link between macroprudential policies and cross-border bank flows and found that the structure of the banking sector affects cross-border bank flows. Kokenyne and Baba (2011) identified the insignificant effect of direct CFMs on volume and maturity of capital inflows in four emerging market economies (Brazil, Colombia, Korea, and Thailand).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Forbes et al (2015) analysed the CFMs introduced for the purpose of addressing capital inflows from 2009 to 2011 and showed that the CFMs did not have a significant effect on capital flows. Beirne and Friedrich (2017) examined the link between macroprudential policies and cross-border bank flows and found that the structure of the banking sector affects cross-border bank flows.…”

Section: Literature Reviewmentioning

confidence: 99%

Capital flow management policies in emerging market economies: Are they successful in mitigating drastic changes of capital flows?

Hwang

Park

2018

Int. J Fin Econ

View full text Add to dashboard Cite

This paper constructs a new database for capital flow management policies (CFMs) in 16 emerging market economies from 1999 to 2008 and analyses their effect on extreme capital flow movements. We show that CFMs are effective in mitigating drastic changes of capital flows. We also find that CFMs do not have significant impacts on capital flow volumes. The results suggest that CFMs could be employed as policy toolkits for mitigating extreme capital flow movements without distorting capital flows in a normal period.

show abstract

Macroprudential policies, capital flows, and the structure of the banking sector

Cited by 50 publications

References 42 publications

Capital Flows-at-Risk: Push, Pull and the Role of Policy

Capital Flows-at-Risk: Push, Pull and the Role of Policy

Macroprudential FX Regulations: Shifting the Snowbanks of FX Vulnerability?

Capital flow management policies in emerging market economies: Are they successful in mitigating drastic changes of capital flows?

Contact Info

Product

Resources

About