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Bank Credit Extension and Real Economic Activity in South Africa

The Impact of Capital Flow Dynamics, Bank Regulation and Selected Macro-prudential Tools

  • Nombulelo Gumata
  • Eliphas Ndou

Table of contents

  1. Front Matter
    Pages i-xlvii
  2. Nombulelo Gumata, Eliphas Ndou
    Pages 1-46
  3. Global Liquidity, Capital Flows, Asset Prices and Credit Dynamics in South Africa

  4. Credit Supply Dynamics and the Economy

    1. Front Matter
      Pages 229-229
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 231-242
    3. Nombulelo Gumata, Eliphas Ndou
      Pages 243-277
    4. Nombulelo Gumata, Eliphas Ndou
      Pages 279-299
    5. Nombulelo Gumata, Eliphas Ndou
      Pages 327-332
  5. Financial Regulatory Uncertainty and Bank Risk Taking

    1. Front Matter
      Pages 333-333
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 335-362
  6. Macro-Prudential Tools and Monetary Policy

    1. Front Matter
      Pages 405-405
    2. Nombulelo Gumata, Eliphas Ndou
      Pages 407-436
    3. Nombulelo Gumata, Eliphas Ndou
      Pages 437-466
    4. Nombulelo Gumata, Eliphas Ndou
      Pages 467-479
  7. Back Matter
    Pages 555-582

About this book

Introduction

This book presents empirical evidence that supports and facilitates a practical, integrated approach to how bank regulatory and selected macro-prudential tools interact with monetary policy to achieve price and financial stability. The empirical results contained in various chapters accompany in-depth historical analysis and counterfactual scenarios that enable proper policy evaluation and the interaction of bank regulatory, macro-prudential and monetary policy tools in South Africa. The presented evidence also identifies financial asset boom and bust episodes and the associated costly output losses. In addition, the authors explore the amplification of credit dynamics by commodity prices and sector credit re-allocation due to capital inflows shocks. The book’s empirical analysis uses a wide range of statistical and econometric approaches on granular data and economic variables to derive policy implications and recommendations. This in-depth quantitative analysis includes determining inverse transmission of global liquidity, as well as the effects of capital flows, lending-rate margins, financial regulatory uncertainty, the National Credit Act, bank capital-adequacy ratios, bank loan loss provisions, loan-to-value ratios and repayment-to-income ratios on the macro-economy.

Keywords

International macroeconomics International Economics Macroeconomics Growth theory International Finance Monetary Policy Global liquidity Credit dynamics Transmission of liquidity shocks Volatility shocks Volatility Economic growth The National Credit Act

Authors and affiliations

  • Nombulelo Gumata
    • 1
  • Eliphas Ndou
    • 2
  1. 1.EconomistSouth African Reserve BankSouth Africa
  2. 2.EconomistSouth African Reserve BankSouth Africa

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-43551-0
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2017
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-43550-3
  • Online ISBN 978-3-319-43551-0
  • Buy this book on publisher's site