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Book Part Effectiveness of macroprudential policies: Panel data evidence on the role of institutions, financial structure, and banking regulations(Springer International Publishing, 2021) Ekinci,M.F.; Özcan,G.The effectiveness of macro-prudential policies to mitigate credit cycles and reduce capital flow volatility is at the center of policy debates. In this chapter, we investigate the factors which influence the performance of macro-prudential tools by focusing on institutions, financial structure, and banking sector regulations. We find strong evidence indicating that macro-prudential measures are more effective when they are complemented with a tighter regulatory framework. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021. All rights reserved.Article Citation - WoS: 1Citation - Scopus: 1Effectiveness of Macroprudential Policies on Credit Surge and Stop Episodes(Springer, 2024) Ekinci, Mehmet Fatih; Kenc, Turalay; Tezcan, Unay TamgacWhen faced with capital flow and credit growth waves in recent years, policymakers have relied upon macroprudential regulation. This paper sheds light on a relatively less-analyzed policy issue: how macroprudential regulatory measures mitigate extreme credit growth episodes. We use a dynamic panel data approach to estimate the impact of MaPPs on credit growth volatility and the likelihood of credit growth boom and bust episodes. We find that MaPPs reduce credit growth volatility in both advanced economies (AEs) and emerging market economies (EMEs). In addition, MaPPs help to prevent credit surges in EMEs and stops in AEs. Our results show that there is a strong link between net capital flows and credit growth stop episodes. Net capital flow surges trigger a credit surge for EMEs. This suggests that policymakers should consider both MaPPs and capital flow management measures when designing policies to mitigate the risks associated with these phenomena.
