IMF working paper sees regulation as key driver of decline in foreign lending

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A working paper published by the International Monetary Fund presents evidence for the "importance" of regulatory tightening in explaining the "sluggishness" in international banking since the crisis.

In Post-crisis international banking: An analysis with new regulatory survey data, Hibiki Ichiue and Frederic Lambert use data from a survey conducted in 2014 in preparation for the fund's global financial stability report.

The authors suggest regulatory tightening "can explain half of the decline

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