Click here for search results
Macroprudential regulation of credit booms and busts -- the case of Croatia
 
Author:Kraft, Evan; Galac, Tomislav; Collection Title:Policy Research working paper ; no. WPS 5772
Country:Croatia; Date Stored:2011/08/22
Document Date:2011/08/01Document Type:Policy Research Working Paper
SubTopics:Bankruptcy and Resolution of Financial Distress; Access to Finance; Emerging Markets; Banks & Banking Reform; Debt MarketsLanguage:English
Region:Europe and Central AsiaReport Number:WPS5772
Volume No:1 of 1  

Summary: Croatia employed macroprudential measures to manage credit growth and capital inflows during the boom years of the 2000s, including reserve requirements on loan growth, a marginal reserve requirement on increases in foreign liabilities, foreign exchange liquidity minima, and elevated capital adequacy ratios. Although quantitative analysis is complicated by substantial overlaps among measures, the econometric results in this paper suggest that the measures were most effective in requiring banks to hold high liquidity and capital buffers, and less effective in slowing credit growth and capital inflows. Larger buffers seem to have helped Croatian banks weather the financial crisis, making the adjustments to capital and liquidity during the crisis smaller.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 30 pagesOfficial version*2.1 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/J06DYDN1M0