Prudential policy spillovers: how do international bank flows react to French policies?
DÉES, Stephane
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
DÉES, Stephane
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
< Leer menos
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Idioma
EN
Article de revue
Este ítem está publicado en
International Economics. 2021-09-01
Resumen en inglés
Most of prudential regulations apply to national institutions while, in practice, banks operate at
the global level, generating international banking flows which are not comprehensively captured
by policies with a domestic ...Leer más >
Most of prudential regulations apply to national institutions while, in practice, banks operate at
the global level, generating international banking flows which are not comprehensively captured
by policies with a domestic remit. This may give rise to spillovers, i.e., effects not considered ex
ante in the objectives and/or constraints of authorities in charge of prudential policy, the effec-
tiveness of which may be harmed. Using BIS data on foreign bank lending over a large sample of
countries, we investigate international spillovers from French prudential policies. Overall, we
show that French prudential policies entail a reduction in foreign banks' lending to French resi-
dents. Yet some measures may lead to undesired leakages that potentially undermine authorities'
goals: foreign bank affiliates’ exposure to France rose by 1.1% (1.9 Bn USD) on average over
2011–17 owing to the implementation of Basel capital requirements.< Leer menos
Palabras clave
Prudential regulation
Palabras clave en inglés
International banking
International spillovers
Centros de investigación