Cross-Border Spillover Effects of Macroprudential Policies: A Conceptual Framework

2020 ◽  
Author(s):  
Christoffer Kok ◽  
Dennis Reinhardt
Keyword(s):  
Conceptual Framework ◽  
Spillover Effects ◽  
Cross Border ◽  
Macroprudential Policies

THE INTERNATIONAL IMPACT OF MACROPRUDENTIAL POLICIES

2021 ◽  
Author(s):  
Doriane Intungane
Keyword(s):  
Equilibrium Model ◽  
Capital Requirements ◽  
Dynamic Stochastic General Equilibrium ◽  
Time Varying ◽  
Credit Growth ◽  
Cross Border ◽  
Macroprudential Policies ◽  
Dynamic Stochastic ◽  
The Impact

The recent financial crisis started a global debate on the role of financial policies, which led to financial system reforms in many countries. These reforms mainly consisted of increasing the usage of macroprudential policies. This dissertation seeks to understand whether macroprudential policies in financially integrated countries reduced their vulnerability to the impact of external shocks. Chapter 2 empirically examines the impact of macroprudential policies on cross-border bilateral credit growth. Capital requirements and loan-to-value (LTV) ratios, in 15 lending countries and 34 borrowing countries between 2000 and 2014, are used in the analysis. The results show that in some countries, the increase of capital requirements is not effective in reducing international credit flows during periods of financial vulnerability. The impact of tightening LTV ratios is more heterogeneous across countries because LTV ratios are mainly used in the housing sector and not all countries change their LTV ratio frequently. Hence, cooperation across countries is necessary but also countries should make sure that the change of macroprudential policies targeting lenders and those targeting borrowers complement each other to avoid international leakages. Chapter 3 analyzes issues related to the international spillover of macroprudential policies through international banking activities using a two-country dynamic stochastic general equilibrium model with heterogeneous and time-varying macroprudential policies. The results show that a combination of capital requirements and LTV ratios is effective in reducing credit growth despite the existence of cross-border banking activities and heterogeneous implementation of capital requirements across countries. In addition, international coordination of capital requirements is also effective in reducing credit growth but less effective than a combination of capital requirements and LTV ratios. Chapter 4 focuses on the role of countercyclical LTV ratios in reducing transmission of shocks when international investors, holding domestic and foreign assets, face collateral constraint. Using a two-country dynamic stochastic general equilibrium model, the analysis demonstrates that time-varying LTV ratios can reduce the transmission of shocks.

scholarly journals Europäische Gemeinnützigkeit

2020 ◽  
Author(s):  
Benjamin Schmidt
Keyword(s):  
Conceptual Framework ◽  
Legal Practice ◽  
Member States ◽  
Eu Member States ◽  
Cross Border ◽  
European Foundation

This thesis seeks to develop a conceptual framework for EU-compliant charity laws. It analyzes critically the legal practice that has emerged in many EU member states after the ECJ decisions in Stauffer and Persche: to require charitable “free movers” to comply with all charitable law requirements of the country in which tax exemption is sought (so-called “strict” comparability test). Further, the thesis focuses on the readiness of national charity laws to administer cross-border cases, the introduction of “new” national factors into charity laws and the proposal for a European Foundation Statute.

scholarly journals Informal Cross Border Trade as a Substratum Marketing System: A Review and Conceptual Framework

2020 ◽  
Author(s):  
Eldrede Kahiya ◽  
Djavlonbek Kadirov
Keyword(s):  
Conceptual Framework ◽  
Sub Saharan Africa ◽  
Marketing System ◽  
Economic Implications ◽  
Cross Border ◽  
Governmental Organizations ◽  
System A ◽  
Non Governmental Organizations ◽  
Border Trade ◽  
Sub Saharan

© The Author(s) 2020. We provide a literature review and a conceptual framework on informal cross border trade in Sub-Saharan Africa. Informal cross border trade (ICBT) refers to commercial exchanges conducted across borders by individuals operating as unregistered sole traders. ICBT is a burgeoning part of the informal markets in Sub-Saharan Africa and its existence and persistence carry substantial socio-economic implications. We use “summarizing” and “delineating” techniques to discuss seven themes of ICBT, and cast them as the manifestations of a substratum marketing system - a foundational structure instead of an auxiliary system. We underline implications for scholarship and for policymakers and non-governmental organizations charged with formulating initiatives to manage both ICBT and formal markets.

scholarly journals Domestic Lending and the Pandemic: How Does Banks' Exposure to Covid-19 Abroad Affect Their Lending in the United States?

2021 ◽  
Vol 2021 (056) ◽  
pp. 1-45
Author(s):  
Judit Temesvary ◽  
◽  
Andrew Wei ◽  
Keyword(s):  
United States ◽  
Spillover Effects ◽  
The United States ◽  
Registry Data ◽  
Cross Border ◽  
Foreign Countries ◽  
The U.S

We study how U.S. banks' exposure to the economic fallout due to governments' response to Covid-19 in foreign countries has affected their credit provision to borrowers in the United States. We combine a rarely accessed dataset on U.S. banks' cross-border exposure to borrowers in foreign countries with the most detailed regulatory ("credit registry") data that is available on their U.S.-based lending. We compare the change in the U.S. lending of banks that are more vs. less exposed to the pandemic abroad, during and after the onset of Covid-19 in 2020. We document strong spillover effects: U.S. banks with higher foreign exposures in badly "Covid-19-hit" regions cut their lending in the United States substantially more. This effect is particularly strong for longer-maturity loans and term loans and is robust to controlling for firms’ pandemic exposure.

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