submitted on 2023-10-18, 11:29 and posted on 2023-10-19, 04:46authored byNicholas Apergis, Ahmet F. Aysan, Yassine Bakkar
This paper investigates the impact of different country-traits of the effects of macroprudential policies on systemic risks in OECD countries. The analysis documents that institutional quality, high capital stringency, and moderate supervision support macroprudential policies in mitigating systemic risks, depending on macroprudential instruments in force. Institutional, regulatory and supervisory frameworks differently affect the effectiveness of lender- vis-à-vis borrower-targeted policies.