Template-Type: ReDIF-Paper 1.0
Author-Name: Stijn Claessens
Author-X-Name-First: Stijn
Author-X-Name-Last: Claessens
Author-Name: Giulio Cornelli
Author-X-Name-First: Giulio
Author-X-Name-Last: Cornelli
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Author-Name: Francesco Manaresi
Author-X-Name-First: Francesco
Author-X-Name-Last: Manaresi
Author-Name: Yasushi Shiina
Author-X-Name-First: Yasushi
Author-X-Name-Last: Shiina
Title: Do macroprudential policies affect non-bank financial intermediation?
Abstract: We analyse how macroprudential policies (MaPs), largely applied to banks and to a lesser extent borrowers, affect non-bank financial intermediation (NBFI). Using data for 24 of the jurisdictions participating in the Financial Stability Board's monitoring exercise over the period 2002–17, we study the effects of MaP episodes on bank assets and on those NBFI activities that may involve bank-like financial stability risks (the narrow measure of NBFI). We find that a net tightening of domestic MaPs increases these NBFI activities and decreases bank assets, raising the NBFI share in total financial assets. By contrast, a net tightening of MaPs in foreign jurisdictions leads to a reduction of the NBFI share – the effect of a drop in NBFI activities and an increase in domestic banking assets. Tightening and easing MaPs have largely symmetric effects on NBFI. We find that the effect of MaPs (both domestic and foreign) is economically and statistically significant for all those NBFI economic functions that may pose risks to financial stability.
Length: 38 pages
Creation-Date: 2021-02
File-URL: https://www.bis.org/publ/work927.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work927.htm
File-Format: text/html
Number: 927
Keywords: macroprudential policy, non-bank financial intermediation, shadow banking, international spillovers
Classification-JEL: G10, G21, O16, O40
Handle: RePEc:bis:biswps:927