Table 4 - uploaded by Alvaro G Taboada
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In this paper, we examine the impact of adopting macroprudential policies on bank risk taking and systemic risk. Using a difference-in-differences (DiD) design and a sample of 3,342 banks from 77 countries over the period 1997-2016, we find that macroprudential policy instruments mitigate bank risk taking and lower systemic risk. The mitigation dep...
Contexts in source publication
Context 1
... analysis parallels the one used in the prior section (Panels A and D of Table 3). Table 4 shows results from the estimation of Equation (2) using the systemic risk proxies. ...
Context 2
... results in Panel A of Table 4 show the evidence that the adoption of borrower-targeted macroprudential policies lowers systemic risk. The impact is both statistically and economically significant. ...
Context 3
... Panel B of Table 4, we show results using the PSM-matched sample for the borrower-targeted macroprudential policies. Results are consistent with previous findings. ...
Context 4
... adoption of borrower-targeted macroprudential instruments is associated with a reduction in systemic risk. For example, the results in Table 4 show that banks in the treatment group experience a 0.005 (25% of its mean, 0.02) larger reduction in MES after the adoption of borrower-targeted macroprudential instruments relative to their PSM-matched sample. In addition, results using the other measure of systemic risk, SRISK, are similar in both magnitude and statistical significance. ...
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