engleski

Effectiveness of Macroprudential Policies in Central and Eastern European Countries

This paper extends the available datasets on the use of macroprudential policies in CEE countries, and provides an econometric assessment of the effectiveness of these policies in mitigating financial stability risks associated with excessive credit growth before the global financial crisis. The model results imply that macroprudential policies were more effective in slowing credit to households than credit to the non-financial corporate sector, mainly because the latter had access to non-bank and cross-border credit in addition to domestic bank credit.

macroprudential policy, financial stability, credit growth, systemic risk, CEE countries

This work has been partially supported by Croatian Science Foundation under the project STatistical Modelling for REspoNse to Crisis and Economic GrowTH in WeStern Balkan Countries -STRENGTHS (project no. IP-2013-9402).