Macroprudential regulation and bank behaviour: theory and evidence from a quasi-natural experiment

摘要

The article examines the impact of macroprudential policies on bank credit growth. Towards this end, we develop a model of bank behaviour which examines the possible impact of such policies. The testable propositions of the model are empirically examined using a natural experiment for India. The results appear to suggest that macroprudential policies interact with bank ownership to moderate the severity of the credit cycle.