Credit Growth and Macroprudential Policies : Preliminary Evidence on the Firm Level

Combining data on 1.3 million firms from 2002 to 2011 operating in 59 countries with changes in macroprudential regulations over this period, we find some evidence that macroprudential policies are associated with lower credit growth, especially for small firms with limited non-bank financing. We also find an impact of macroprudential policies on young firms in emerging markets. Our results point to an important tradeoff in financial stability and financial deepening. Full Publication: 'http://ssrn.com/abstract=2944862' Financial Systems and the Real Economy