Abstract
ABSTRACT In this paper, we examine the impact of macroprudential policy on economic growth. The results show that the implementation of macroprudential policies contributes to fostering economic growth, especially in the period following the onset of the global financial crisis. In particular, we show that tightening loan loss provisions, loan-to-value, lending restriction, liquidity requirements and systemically important financial institutions measures all lead to higher economic growth. However, we also find that, while tightening macroprudential policy is generally beneficial for the economy, excessive tightening policy can exert a negative growth impact.
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