Macroprudential Policy, Shadow Banking and Commercial Banks’ Risk-taking
Abstract
This study systematically explores the impact of macroprudential policy (MPP) and the Two-Pillar regulatory framework (TPRF) on commercial banks’ risk-taking, using a fixed-effects model for the period 2010-2020. The study finds MPP can not only decrease the level of risk-taking of commercial banks, but also contain the risks caused by loose monetary policy (MNP), and that TPRF can eff ectively play a role in financial stability. Specifically, the MPP and TPRF can reduce risks through the mechanism of shadow banking.
Keywords
Commercial banks’ risk -taking; Shadow banking; Macroprudential policy
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[1] Altunbas, Y., Binici, M., & Gambacorta, L. (2018). Macroprudential policy and bank risk. Journal of International Money and Finance, 81, 203-220.
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DOI: http://dx.doi.org/10.18686/ahe.v7i13.8476
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