01999cas a2200265 a 4500 AALejournalIMF014647 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498319546 1018-5941 BD-DhAAL BD-DhAAL Claessens, Stijn. Macro-Prudential Policies to Mitigate Financial System Vulnerabilities / Stijn Claessens, Swati Ghosh, Roxana Mihet. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Macro-prudential policies aimed at mitigating systemic financial risks have become part of the policy toolkit in many emerging markets and some advanced countries. Their effectiveness and efficacy are not well-known, however. Using panel data regressions, we analyze how changes in balance sheets of some 2,800 banks in 48 countries over 2000-2010 respond to specific macro-prudential policies. Controlling for endogeneity, we find that measures aimed at borrowers--caps on debt-to-income and loan-to-value ratios--and at financial institutions--limits on credit growth and foreign currency lending--are effective in reducing asset growth. Countercyclical buffers are little effective through the cycle, and some measures are even counterproductive during downswings, serving to aggravate declines, consistent with the ex-ante nature of macro-prudential tools. Mode of access: Internet Ghosh, Swati. Mihet, Roxana. IMF Working Papers; Working Paper ; No. 2014/155 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/155/001.2014.issue-155-en.xml IMF e-Library