Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia

Croatia employed macroprudential measures to manage credit growth and capital inflows during the boom years of the 2000s, including reserve requirements on loan growth, a marginal reserve requirement on increases in foreign liabilities, foreign exchange liquidity minima, and elevated capital adequacy ratios. Although quantitative analysis is complicated by substantial overlaps among measures, the econometric results in this paper suggest that the measures were most effective in requiring banks to hold high liquidity and capital buffers, and less effective in slowing credit growth and capital inflows. Larger buffers seem to have helped Croatian banks weather the financial crisis, making the adjustments to capital and liquidity during the crisis smaller.

Bibliographic Details

Main Authors:	Kraft, Evan, Galac, Tomislav
Language:	English
Published:	2011-08-01
Subjects:	ACCOUNTING, AFFILIATES, AIC, AMOUNT OF CAPITAL, AMOUNT OF CREDIT, BALANCE SHEET, BALANCE SHEET EFFECTS, BALANCE SHEETS, BANK ACCOUNTS, BANK ASSETS, BANK BALANCE SHEETS, BANK CAPITALIZATION, BANK CREDIT, BANK DEPOSITS, BANK EARNINGS, BANK FAILURE, BANK FAILURES, BANK LENDERS, BANK LENDING, BANK LIQUIDITY, BANK LOAN, BANK LOANS, BANK POLICY, BANK RECAPITALIZATION, BANKING ASSETS, BANKING CRISIS, BANKING INDUSTRY, BANKING MARKET, BANKING SECTOR, BANKING SUPERVISION, BANKING SYSTEM, BANKING SYSTEMS, BANKS, BASIS POINTS, BILLS OF EXCHANGE, BOND, BOND MARKETS, BORROWER, BORROWING, CAPITAL ACCOUNT, CAPITAL ACCOUNT LIBERALIZATION, CAPITAL ADEQUACY, CAPITAL ADEQUACY RATIOS, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL INFLOWS, CAPITAL MARKETS, CAPITAL OUTFLOWS, CAPITAL RAISING, CAPITAL REQUIREMENT, CAPITAL REQUIREMENTS, CAR LOANS, CASH INFLOWS, CASH OUTFLOWS, CENTRAL BANK, CENTRAL BANK BILLS, CENTRAL BANKS, CHECKS, COMMERCIAL BANKS, CONNECTED LENDING, CONSOLIDATED SUPERVISION, CONSOLIDATION, CORPORATE BORROWERS, CORPORATE GOVERNANCE, CORPORATE INVESTMENT, COST OF CREDIT, CREDIT BUREAU, CREDIT CULTURE, CREDIT EXPANSION, CREDIT GROWTH, CREDIT INSTITUTIONS, CREDIT LINES, CREDIT MARKETS, CREDIT PRODUCTS, CREDIT QUALITY, CREDIT RISK, CREDITOR, CREDITORS, CROATIAN NATIONAL BANK, CURRENCY, CURRENCY BOARD, CURRENCY DEPRECIATION, CURRENCY MISMATCH, CURRENCY RISK, CURRENT ACCOUNT DEFICIT, CURRENT ACCOUNT DEFICITS, DEBT, DEBT FINANCING, DEBT INSTRUMENTS, DEFAULT RATES, DEFAULTS, DEFICITS, DEGREE OF TRANSPARENCY, DEPOSIT, DEPOSIT INSURANCE, DEPOSITORS, DEPOSITS, DEVELOPING COUNTRY, DISBURSEMENT, DISPUTE RESOLUTION, DOMESTIC BANK, DOMESTIC BANKS, DOMESTIC CREDIT, DOMESTIC CURRENCY, DOMESTIC LIQUIDITY, DOMESTIC MARKET, ECONOMETRIC EVIDENCE, EMERGING MARKETS, EXCHANGE RATE, FINANCIAL CRISIS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL REGULATION, FINANCIAL STABILITY, FINANCIAL STATEMENTS, FINANCIAL SYSTEM, FISCAL BURDEN, FISCAL DEFICITS, FOREIGN ASSETS, FOREIGN BANK, FOREIGN BANKS, FOREIGN CURRENCY, FOREIGN CURRENCY DEPOSITS, FOREIGN CURRENCY LOANS, FOREIGN DEBT, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE DEBT, FOREIGN EXCHANGE MARKET, FOREIGN EXCHANGE TRANSACTION, FOREIGN INVESTMENT, FOREIGN INVESTMENTS, FUNDING SOURCES, GOVERNMENT BONDS, GOVERNMENT DEBT, GOVERNMENT DEFICIT, GOVERNMENT FUNDING, GOVERNMENT PAPER, HEDGES, HOLDING, HOLDING REQUIREMENT, HOLDINGS, HOME MARKETS, HOME MORTGAGES, HOST COUNTRY, HOUSING, INFLATION, INSTRUMENT, INTEREST COSTS, INTEREST RATE, INTEREST RATE DIFFERENTIALS, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL CREDIT, INTERNATIONAL DEBT, INTERNATIONAL DEBT MARKETS, INTERNATIONAL STANDARD, INVESTING, INVESTMENT FUNDS, INVESTMENT PROJECTS, ISSUANCE, LEGAL PROTECTION, LEGISLATION, LENDER, LENDER OF LAST RESORT, LETTERS OF CREDIT, LEVY, LIABILITY, LINE OF CREDIT, LINES OF CREDIT, LIQUID ASSETS, LIVING STANDARDS, LOAN, LOAN COMMITMENTS, LOAN DEMAND, LOAN PORTFOLIOS, LOAN REPAYMENT, LOANS TO ENTERPRISES, LOCAL CURRENCY, LONG-TERM LOANS, MANDATORY PENSION FUNDS, MARKET INTEREST RATES, MARKET SHARE, MATURITY, MATURITY PERIODS, MINIMUM CAPITAL ADEQUACY RATIO, MINIMUM CAPITAL REQUIREMENTS, MONETARY POLICY, MONEY SUPPLY, MORTGAGE, MORTGAGE LOANS, PENSION, PENSION FUND, PORTFOLIO, PORTFOLIO INVESTMENT, PRIMARY MARKET, PRINCIPAL PAYMENTS, PRINCIPAL VALUE, PRIVATE SECTOR DEBT, PRIVATIZATION, RECESSION, REGULATORY AUTHORITIES, REGULATORY FRAMEWORK, REPO, REPO AUCTIONS, RESERVE, RESERVE REQUIREMENT, RESERVE REQUIREMENTS, RESERVES, RETURN, RETURNS, RISK MANAGEMENT, RISK PROFILES, SAVINGS, SECURITIES, SMALL BANKS, STOCK MARKET, STOCK MARKETS, SUBSIDIARIES, SUBSIDIARY, SUPERVISORY AUTHORITY, TAX, TAXATION, TELECOMMUNICATIONS, TOTAL DEBT, TRANSITION COUNTRIES, TRANSPARENCY, WITHDRAWAL,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110822112255 https://hdl.handle.net/10986/3534
Tags:	Add Tag No Tags, Be the first to tag this record!