Rising spillover risks from macro-prudential policies

economy risks

Central bank actions often have unintended spillover effects – not just those related to monetary policy, but also in financial regulation and macro-prudential policy.

The literature on cross-border spillovers of financial regulation has already documented that a tightening of regulations in the home country can lead to more and riskier lending by international banks in host countries.1,2 

In the macro-prudential context, regulations limiting foreign exchange borrowing by banks can lead to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.