Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia
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 exc...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10986/3534 |
| id |
okr-10986-3534 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-35342017-12-13T13:02:57Z Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia Kraft, Evan Galac, Tomislav ACCOUNTING AFFILIATES AIC AMOUNT OF CAPITAL AMOUNT OF CREDIT BALANCE SHEET BALANCE SHEET EFFECTS BALANCE SHEETS BANK ACCOUNTS BANK ASSETS BANK BALANCE SHEETS BANK CAPITALIZATION BANK CREDIT BANK DEPOSITS BANK EARNINGS BANK FAILURE BANK FAILURES BANK LENDERS BANK LENDING BANK LIQUIDITY BANK LOAN BANK LOANS BANK POLICY BANK RECAPITALIZATION BANKING ASSETS BANKING CRISIS BANKING INDUSTRY BANKING MARKET BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BASIS POINTS BILLS OF EXCHANGE BOND BOND MARKETS BORROWER BORROWING CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL FLOWS CAPITAL FORMATION CAPITAL INFLOWS CAPITAL MARKETS CAPITAL OUTFLOWS CAPITAL RAISING CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAR LOANS CASH INFLOWS CASH OUTFLOWS CENTRAL BANK CENTRAL BANK BILLS CENTRAL BANKS CHECKS COMMERCIAL BANKS CONNECTED LENDING CONSOLIDATED SUPERVISION CONSOLIDATION CORPORATE BORROWERS CORPORATE GOVERNANCE CORPORATE INVESTMENT COST OF CREDIT CREDIT BUREAU CREDIT CULTURE CREDIT EXPANSION CREDIT GROWTH CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKETS CREDIT PRODUCTS CREDIT QUALITY CREDIT RISK CREDITOR CREDITORS CROATIAN NATIONAL BANK CURRENCY CURRENCY BOARD CURRENCY DEPRECIATION CURRENCY MISMATCH CURRENCY RISK CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS DEBT DEBT FINANCING DEBT INSTRUMENTS DEFAULT RATES DEFAULTS DEFICITS DEGREE OF TRANSPARENCY DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVELOPING COUNTRY DISBURSEMENT DISPUTE RESOLUTION DOMESTIC BANK DOMESTIC BANKS DOMESTIC CREDIT DOMESTIC CURRENCY DOMESTIC LIQUIDITY DOMESTIC MARKET ECONOMETRIC EVIDENCE EMERGING MARKETS EXCHANGE RATE FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL REGULATION FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FISCAL BURDEN FISCAL DEFICITS FOREIGN ASSETS FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY DEPOSITS FOREIGN CURRENCY LOANS FOREIGN DEBT FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE DEBT FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE TRANSACTION FOREIGN INVESTMENT FOREIGN INVESTMENTS FUNDING SOURCES GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT FUNDING GOVERNMENT PAPER HEDGES HOLDING HOLDING REQUIREMENT HOLDINGS HOME MARKETS HOME MORTGAGES HOST COUNTRY HOUSING INFLATION INSTRUMENT INTEREST COSTS INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CREDIT INTERNATIONAL DEBT INTERNATIONAL DEBT MARKETS INTERNATIONAL STANDARD INVESTING INVESTMENT FUNDS INVESTMENT PROJECTS ISSUANCE LEGAL PROTECTION LEGISLATION LENDER LENDER OF LAST RESORT LETTERS OF CREDIT LEVY LIABILITY LINE OF CREDIT LINES OF CREDIT LIQUID ASSETS LIVING STANDARDS LOAN LOAN COMMITMENTS LOAN DEMAND LOAN PORTFOLIOS LOAN REPAYMENT LOANS TO ENTERPRISES LOCAL CURRENCY LONG-TERM LOANS MANDATORY PENSION FUNDS MARKET INTEREST RATES MARKET SHARE MATURITY MATURITY PERIODS MINIMUM CAPITAL ADEQUACY RATIO MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MONEY SUPPLY MORTGAGE MORTGAGE LOANS PENSION PENSION FUND PORTFOLIO PORTFOLIO INVESTMENT PRIMARY MARKET PRINCIPAL PAYMENTS PRINCIPAL VALUE PRIVATE SECTOR DEBT PRIVATIZATION RECESSION REGULATORY AUTHORITIES REGULATORY FRAMEWORK REPO REPO AUCTIONS RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN RETURNS RISK MANAGEMENT RISK PROFILES SAVINGS SECURITIES SMALL BANKS STOCK MARKET STOCK MARKETS SUBSIDIARIES SUBSIDIARY SUPERVISORY AUTHORITY TAX TAXATION TELECOMMUNICATIONS TOTAL DEBT TRANSITION COUNTRIES TRANSPARENCY WITHDRAWAL 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. 2012-03-19T18:04:10Z 2012-03-19T18:04:10Z 2011-08-01 http://hdl.handle.net/10986/3534 English Policy Research working paper ; no. WPS 5772 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe Eastern Europe Croatia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
World Bank |
| building |
World Bank Open Knowledge Repository |
| collection |
Online Access |
| language |
English |
| topic |
ACCOUNTING AFFILIATES AIC AMOUNT OF CAPITAL AMOUNT OF CREDIT BALANCE SHEET BALANCE SHEET EFFECTS BALANCE SHEETS BANK ACCOUNTS BANK ASSETS BANK BALANCE SHEETS BANK CAPITALIZATION BANK CREDIT BANK DEPOSITS BANK EARNINGS BANK FAILURE BANK FAILURES BANK LENDERS BANK LENDING BANK LIQUIDITY BANK LOAN BANK LOANS BANK POLICY BANK RECAPITALIZATION BANKING ASSETS BANKING CRISIS BANKING INDUSTRY BANKING MARKET BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BASIS POINTS BILLS OF EXCHANGE BOND BOND MARKETS BORROWER BORROWING CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL FLOWS CAPITAL FORMATION CAPITAL INFLOWS CAPITAL MARKETS CAPITAL OUTFLOWS CAPITAL RAISING CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAR LOANS CASH INFLOWS CASH OUTFLOWS CENTRAL BANK CENTRAL BANK BILLS CENTRAL BANKS CHECKS COMMERCIAL BANKS CONNECTED LENDING CONSOLIDATED SUPERVISION CONSOLIDATION CORPORATE BORROWERS CORPORATE GOVERNANCE CORPORATE INVESTMENT COST OF CREDIT CREDIT BUREAU CREDIT CULTURE CREDIT EXPANSION CREDIT GROWTH CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKETS CREDIT PRODUCTS CREDIT QUALITY CREDIT RISK CREDITOR CREDITORS CROATIAN NATIONAL BANK CURRENCY CURRENCY BOARD CURRENCY DEPRECIATION CURRENCY MISMATCH CURRENCY RISK CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS DEBT DEBT FINANCING DEBT INSTRUMENTS DEFAULT RATES DEFAULTS DEFICITS DEGREE OF TRANSPARENCY DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVELOPING COUNTRY DISBURSEMENT DISPUTE RESOLUTION DOMESTIC BANK DOMESTIC BANKS DOMESTIC CREDIT DOMESTIC CURRENCY DOMESTIC LIQUIDITY DOMESTIC MARKET ECONOMETRIC EVIDENCE EMERGING MARKETS EXCHANGE RATE FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL REGULATION FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FISCAL BURDEN FISCAL DEFICITS FOREIGN ASSETS FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY DEPOSITS FOREIGN CURRENCY LOANS FOREIGN DEBT FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE DEBT FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE TRANSACTION FOREIGN INVESTMENT FOREIGN INVESTMENTS FUNDING SOURCES GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT FUNDING GOVERNMENT PAPER HEDGES HOLDING HOLDING REQUIREMENT HOLDINGS HOME MARKETS HOME MORTGAGES HOST COUNTRY HOUSING INFLATION INSTRUMENT INTEREST COSTS INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CREDIT INTERNATIONAL DEBT INTERNATIONAL DEBT MARKETS INTERNATIONAL STANDARD INVESTING INVESTMENT FUNDS INVESTMENT PROJECTS ISSUANCE LEGAL PROTECTION LEGISLATION LENDER LENDER OF LAST RESORT LETTERS OF CREDIT LEVY LIABILITY LINE OF CREDIT LINES OF CREDIT LIQUID ASSETS LIVING STANDARDS LOAN LOAN COMMITMENTS LOAN DEMAND LOAN PORTFOLIOS LOAN REPAYMENT LOANS TO ENTERPRISES LOCAL CURRENCY LONG-TERM LOANS MANDATORY PENSION FUNDS MARKET INTEREST RATES MARKET SHARE MATURITY MATURITY PERIODS MINIMUM CAPITAL ADEQUACY RATIO MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MONEY SUPPLY MORTGAGE MORTGAGE LOANS PENSION PENSION FUND PORTFOLIO PORTFOLIO INVESTMENT PRIMARY MARKET PRINCIPAL PAYMENTS PRINCIPAL VALUE PRIVATE SECTOR DEBT PRIVATIZATION RECESSION REGULATORY AUTHORITIES REGULATORY FRAMEWORK REPO REPO AUCTIONS RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN RETURNS RISK MANAGEMENT RISK PROFILES SAVINGS SECURITIES SMALL BANKS STOCK MARKET STOCK MARKETS SUBSIDIARIES SUBSIDIARY SUPERVISORY AUTHORITY TAX TAXATION TELECOMMUNICATIONS TOTAL DEBT TRANSITION COUNTRIES TRANSPARENCY WITHDRAWAL |
| spellingShingle |
ACCOUNTING AFFILIATES AIC AMOUNT OF CAPITAL AMOUNT OF CREDIT BALANCE SHEET BALANCE SHEET EFFECTS BALANCE SHEETS BANK ACCOUNTS BANK ASSETS BANK BALANCE SHEETS BANK CAPITALIZATION BANK CREDIT BANK DEPOSITS BANK EARNINGS BANK FAILURE BANK FAILURES BANK LENDERS BANK LENDING BANK LIQUIDITY BANK LOAN BANK LOANS BANK POLICY BANK RECAPITALIZATION BANKING ASSETS BANKING CRISIS BANKING INDUSTRY BANKING MARKET BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BASIS POINTS BILLS OF EXCHANGE BOND BOND MARKETS BORROWER BORROWING CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL FLOWS CAPITAL FORMATION CAPITAL INFLOWS CAPITAL MARKETS CAPITAL OUTFLOWS CAPITAL RAISING CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAR LOANS CASH INFLOWS CASH OUTFLOWS CENTRAL BANK CENTRAL BANK BILLS CENTRAL BANKS CHECKS COMMERCIAL BANKS CONNECTED LENDING CONSOLIDATED SUPERVISION CONSOLIDATION CORPORATE BORROWERS CORPORATE GOVERNANCE CORPORATE INVESTMENT COST OF CREDIT CREDIT BUREAU CREDIT CULTURE CREDIT EXPANSION CREDIT GROWTH CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKETS CREDIT PRODUCTS CREDIT QUALITY CREDIT RISK CREDITOR CREDITORS CROATIAN NATIONAL BANK CURRENCY CURRENCY BOARD CURRENCY DEPRECIATION CURRENCY MISMATCH CURRENCY RISK CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS DEBT DEBT FINANCING DEBT INSTRUMENTS DEFAULT RATES DEFAULTS DEFICITS DEGREE OF TRANSPARENCY DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVELOPING COUNTRY DISBURSEMENT DISPUTE RESOLUTION DOMESTIC BANK DOMESTIC BANKS DOMESTIC CREDIT DOMESTIC CURRENCY DOMESTIC LIQUIDITY DOMESTIC MARKET ECONOMETRIC EVIDENCE EMERGING MARKETS EXCHANGE RATE FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL REGULATION FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FISCAL BURDEN FISCAL DEFICITS FOREIGN ASSETS FOREIGN BANK FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY DEPOSITS FOREIGN CURRENCY LOANS FOREIGN DEBT FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE DEBT FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE TRANSACTION FOREIGN INVESTMENT FOREIGN INVESTMENTS FUNDING SOURCES GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT FUNDING GOVERNMENT PAPER HEDGES HOLDING HOLDING REQUIREMENT HOLDINGS HOME MARKETS HOME MORTGAGES HOST COUNTRY HOUSING INFLATION INSTRUMENT INTEREST COSTS INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CREDIT INTERNATIONAL DEBT INTERNATIONAL DEBT MARKETS INTERNATIONAL STANDARD INVESTING INVESTMENT FUNDS INVESTMENT PROJECTS ISSUANCE LEGAL PROTECTION LEGISLATION LENDER LENDER OF LAST RESORT LETTERS OF CREDIT LEVY LIABILITY LINE OF CREDIT LINES OF CREDIT LIQUID ASSETS LIVING STANDARDS LOAN LOAN COMMITMENTS LOAN DEMAND LOAN PORTFOLIOS LOAN REPAYMENT LOANS TO ENTERPRISES LOCAL CURRENCY LONG-TERM LOANS MANDATORY PENSION FUNDS MARKET INTEREST RATES MARKET SHARE MATURITY MATURITY PERIODS MINIMUM CAPITAL ADEQUACY RATIO MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MONEY SUPPLY MORTGAGE MORTGAGE LOANS PENSION PENSION FUND PORTFOLIO PORTFOLIO INVESTMENT PRIMARY MARKET PRINCIPAL PAYMENTS PRINCIPAL VALUE PRIVATE SECTOR DEBT PRIVATIZATION RECESSION REGULATORY AUTHORITIES REGULATORY FRAMEWORK REPO REPO AUCTIONS RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN RETURNS RISK MANAGEMENT RISK PROFILES SAVINGS SECURITIES SMALL BANKS STOCK MARKET STOCK MARKETS SUBSIDIARIES SUBSIDIARY SUPERVISORY AUTHORITY TAX TAXATION TELECOMMUNICATIONS TOTAL DEBT TRANSITION COUNTRIES TRANSPARENCY WITHDRAWAL Kraft, Evan Galac, Tomislav Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia |
| geographic_facet |
Europe and Central Asia Europe Eastern Europe Croatia |
| relation |
Policy Research working paper ; no. WPS 5772 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kraft, Evan Galac, Tomislav |
| author_facet |
Kraft, Evan Galac, Tomislav |
| author_sort |
Kraft, Evan |
| title |
Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia |
| title_short |
Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia |
| title_full |
Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia |
| title_fullStr |
Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia |
| title_full_unstemmed |
Macroprudential Regulation of Credit Booms and Busts : The Case of Croatia |
| title_sort |
macroprudential regulation of credit booms and busts : the case of croatia |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/3534 |
| _version_ |
1610769943195811840 |