Macroprudential policy and intra-group dynamics : the effects of reserve requirements in Brazil / Chris Becker, Matias Ossandon Busch, Lena Tonzer
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Discovery
1002560357
URN
urn:nbn:de:gbv:3:2-80741
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH), 02. November 2017
Umfang
1 Online-Ressource (III, 53 Seiten, 1,22 MB) : Illustration, Diagramme
Ausgabevermerk
Sprache
eng
Anmerkungen
Datei gelöscht auf Wunsch der herausgebenden Institution
Inhaltliche Zusammenfassung
This paper examines whether intra-group dynamics matter for the transmission of macroprudential policy. Using novel bank-level data on the Brazilian banking system, we investigate the effect of reserve requirements targeting headquarter banks’ deposit share on credit supply by their municipal bank branches. For identification purposes, we exploit that reserve requirements are adjusted following global economic cycles. Our results reveal a lending channel of reserve requirements for branches whose parent banks are more exposed to targeted deposits. Branch ownership and exposure to internal liquidity are central in explaining the results. Our findings reveal limitations in current macroprudential policy frameworks.
Schriftenreihe
IWH-Diskussionspapiere ; 2017, no. 21 (November 2017) ppn:837399270