Advertisement

Monetary Policy, Banking Supervisory Policy, and Economic Growth in Europe

  • Antonella Cappiello
Chapter

Abstract

This chapter aims to describe the trend of the monetary policy with a focus on critical issues of the interaction between monetary and supervisory policy in the euro area in the latest years.

References

  1. Ahamad, M., Guohui, W., Ali, R., & Rehman, R. (2016, October). Non-Performing Loans and Economic Growth. Journal of Economics, Business and Management, 3, 584–586.Google Scholar
  2. Aiyar, S., Calomiris, C. W., & Wieladek, T. (2015). How to strengthen the regulation of bank capital: Theory, evidence, and a proposal. Journal of Applied Corporate Finance, 27(1), 27–36.CrossRefGoogle Scholar
  3. Albertazzi, U., Nobili, A., & Signoretti, F. M. (2016, December). The bank lending channel of conventional and unconventional monetary policy. Working Paper No. 1094, Banca d’Italia.Google Scholar
  4. Altavilla, C., Canova, F., & Ciccarelli, M. (2016). Mending the broken link: Heterogenous bank lending and monetary policy pass-through. CEPR Discussion Papers 11584.Google Scholar
  5. Angelini, P. (2014). The European framework for financial stability: A bird’s eye view. In E. Barucci & M. Messori (Eds.), Towards the European Banking Union. Firenze: Passigli.Google Scholar
  6. Angelini, P. (2015, June). Le politiche macroprudenziali: una discussione dei principali temi. Occasional Papers, Banca d’Italia, n.271.Google Scholar
  7. Angelini, P., Neri, S., & Panetta, F. (2014). The interaction between capital requirements and monetary policy. Journal of Money, Credit and Banking, 46(6), 1073–1112.CrossRefGoogle Scholar
  8. Angelini, P., Nicoletti-Altimari, S., & Visco, I. (2012). Macroprudential, microprudential and monetary policies: Conflicts, complementarities and trade-offs. In A. Dombret & O. Lucius (Eds.), Stability of the financial system—Illusion or feasible concept. Cheltenham: Edward Elgar.Google Scholar
  9. Balgova, M., Nies, M., & Plekhanov, A. (2016, October). The economic impact of reducing nonperforming loans. Working Paper No. 193, European Bank for Reconstruction and Development.Google Scholar
  10. Beck, T. (2015). Bank capital—Panacea for a crisis-free banking system? European Economy, Banks, Regulation and the real Sector, No. 1.Google Scholar
  11. Bernanke, B., & Blinder, A. S. (1988). Credit, money an aggregated demand. The American Economic Review, 78(2), 435–439.Google Scholar
  12. Bernanke, B., Gertler, M., & Gilchrist, S. (1999). The financial accelerator in a quantitative business cycle framework. In J. Taylor & M. Woodford (Eds.), Handbook of macroeconomics. Amsterdam: Elsevier.Google Scholar
  13. BIS—Bank of International Settlements. (2009). Assessment of the macroeconomic impact of higher loss absorbency for global systemically important banks. Report by the Macroeconomic Assessment Group jointly established by the Financial Stability Board and the Basel Committee on Banking Supervision.Google Scholar
  14. Boeckx, J., de Sola Perea, M., & Peersman, G. (2016, October). The transmission mechanism of credit support policies in the Euro Area. Working Paper Research No. 302.Google Scholar
  15. Borio, C., & Drehmann, M. (2009, March 29–46). Assessing the risk of banking crises—Revisited. BIS Quarterly Review.Google Scholar
  16. Borio, C., & Zhu, H. (2012). Capital regulation, risk-taking and monetary policy: A missing link in the transmission mechanism? Journal of Financial Stability, 8(4), 236–251.CrossRefGoogle Scholar
  17. Bridges, J., Gregory, D., Nielsen, M., Pezzini, S., Radia, A., & Spaltro, M. (2014, January). The impact of capital requirements on bank lending. WP no. 486. Bank of England.Google Scholar
  18. Brunnermeier, M. K., & Schnabel, I. (2014). Bubbles and central banks: Historical perspectives. New York: Mimeo.Google Scholar
  19. Caballero, R. J., Hoshi, T., & Kashyap, A. K. (2008). Zombie lending and depressed restructuring in Japan. American Economic Review, 98(5), 1943–1977.CrossRefGoogle Scholar
  20. Calomiris, C. (2013). Reforming banks without destroying their productivity and value. Journal of Applied Corporate Finance, 25, 14–19.CrossRefGoogle Scholar
  21. Capgemini. (2014). Impact of regulation on bank lending.Google Scholar
  22. Carosio, G. (2010). Financial stability and macroprudential supervision: Challenges for central banks. Paper presented at the 38th OENB Economics Conference.Google Scholar
  23. Cecchetti, S., & Kohler, M. (2012). When capital adequacy and interest rate policy are substitutes (and when they are not). BIS Working Paper No. 379.Google Scholar
  24. Ciccarelli, M., Maddaloni, A., & Peydró, J.-L. (2013). Heterogeneous transmission mechanism: Monetary policy and financial fragility in the Eurozone. Economic Policy, 28(75), 459–512.CrossRefGoogle Scholar
  25. Clerc, L. (2015). Higher capital requirements for GSIBs: Systemic risk vs. lending to the real economy. European Economy. Banks, Regulation and the Real Sector, No. 1.Google Scholar
  26. Cohen, B. H., & Scatigna, M. (2014). Banks and capital requirements: Channels of adjustment. BIS Monetary and Economic Department. Working Papers No. 443.Google Scholar
  27. Colombini, F., & Calabrò, A. (2011). Crisi finanziarie, Banche e Stati. Torino: Utet.Google Scholar
  28. Constâncio, V. (2017, May). Macroprudential policy in a changing financial system, speech delivered at the second ECB Macroprudential Policy and Research Conference, Frankfurt am Main.Google Scholar
  29. Crockett, A. D. (2000, September). Marrying the micro- and macroprudential dimensions of financial stability. Remarks before the Eleventh International Conference of Banking Supervisors, Basel.Google Scholar
  30. Cucinelli, D. (2015). The impact of non-performing loans on bank lending behaviour: Evidence from the Italian banking sector. Eurasian Journal of Business and Economics, 8, 59–71.CrossRefGoogle Scholar
  31. de Larosière, J. (2009). Report by the High level group on financial supervision in the EU, Bruxelles.Google Scholar
  32. Den Haan, W. J., Sumner, S. W., & Yamashiro, G. M. (2007). Bank loan portfolios and the monetary transmission mechanism. Journal of Monetary Economics, 54(3), 904–924.CrossRefGoogle Scholar
  33. Diamond, D., & Rajan, R. (2009). The credit crisis: Conjectures about causes and remedies. NBER Working Paper, No. 14379.Google Scholar
  34. Ediz, T., Michael, I., & Perraudin, W. (1998, October). The impact of capital requirements on UK bank behaviour. FRBNY Economic Policy Review.Google Scholar
  35. ESRB. (2014). Handbook on operationalizing macro-prudential policies in the banking sector.Google Scholar
  36. ESRB. (2015). Report on a review of macro-prudential policy in the EU one year after the introduction of the CRD/CRR.Google Scholar
  37. ECB—European Central Bank. (2011). Monetary policy of the ECB.Google Scholar
  38. ECB—European Central Bank. (2013, January). The euro area Bank Lending Survey.Google Scholar
  39. ECB—European Central Bank. (2014, March). Forward-looking reaction to bank regulation. Working Paper series n. 1645.Google Scholar
  40. ECB—European Central Bank (2016, November). Survey on the access to finance of enterprises in the euro area—April to September 2016.Google Scholar
  41. ECB—European Central Bank. (2017a, January). The euro area Bank Lending Survey.Google Scholar
  42. ECB—European Central Bank. (2017b, May). Financial stability review.Google Scholar
  43. Fell, J., Grodzicki, M., Martin, R., & O’Brien, E. (2016, November). Addressing market failures in the resolution of nonperforming loans in the euro area. Financial Stability Review, BCE.Google Scholar
  44. Francis, W., & Osborne, M. (2009). Bank regulation, capital and credit supply: Measuring the impact of prudential standards. FSA Occasional Paper Series, 36.Google Scholar
  45. Hanson, S. G., Kashyap, A. K., & Stein, J. C. (2011). A Macroprudential Approach to Financial Regulation. Journal of Economic Perspectives, 25(1), 3–28.CrossRefGoogle Scholar
  46. IIF—Institute of International Finance. (2011, September). The cumulative impact on the global economy of changes in the financial regulatory framework, Washington, DC.Google Scholar
  47. IMF—International Monetary Found. (2016, October). Global financial stability report.Google Scholar
  48. Jiménez, G., Ongena, S., Peydró, J.-L., & Saurina, J. (2014). Hazardous times for monetary policy: What do twenty-three million bank loans say about the effects of monetary policy on credit risk-taking? Econometrica, 82(2), 463–505.CrossRefGoogle Scholar
  49. Kannan, P., Rabanal, P., & Scott, A. (2011). Recurring patterns in the run-up to house price busts. Applied Economics Letters, 18(2), 107–113.CrossRefGoogle Scholar
  50. Kwan, S., & Eisenbeis, R. (1995). An analysis of inefficiencies in banking. Journal of Banking and Finance, 19, 733–734.CrossRefGoogle Scholar
  51. Lim, C., Columba, F., Costa, A., Kongsamut, P., Otani, A., Saiyid, M., et al. (2011). Macroprudential policy: What instruments and how to use them? Lessons from country experiences. IMF Working Paper, 11, 238.Google Scholar
  52. MAG—Macroeconomic Assessment Group. (2010). Assessing the macroeconomic impact of the transition to stronger capital and liquidity requirements. BIS, Final Report.Google Scholar
  53. Maddaloni, A., & Peydró, J.-L. (2011). Bank risk-taking, securitisation, supervision and low interest rates: Evidence from the Euro-area and the U.S. lending standards. The Review of Financial Studies, 24(6), 2121–2165.CrossRefGoogle Scholar
  54. Mishkin, F. (1995). Symposium on the monetary transmission mechanism. The Journal of Economic Perspective, 9, 3–10.CrossRefGoogle Scholar
  55. Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5(2), 147–175.CrossRefGoogle Scholar
  56. Panetta, F. (2014, June). On the special role of macroprudential policy in the euro area. Remarks given at De Nederlandsche Bank, Amsterdam.Google Scholar
  57. Panetta, F., Angelini, P., Albertazzi, U., Columba, F., Cornacchia, W., & Di Cesare, A. (2009). Financial sector pro-cyclicality—Lessons from the crisis, Banca d’Italia. Occasional papers, No. 44.Google Scholar
  58. Peek, J., & Rosengren, E. (2000). Collateral damage: Effects of the Japanese bank crisis on real activity in the United States. American Economic Review, 90, 30–45.CrossRefGoogle Scholar
  59. Rabin, A. A., & Jeager, L. B. (1997). The monetary transmission mechanism. The Eastern Economic Journal, 23(3), 293–299.Google Scholar
  60. Reinhart, C. M., & Rogoff, K. S. (2008). Is the 2007 US sub-prime financial crisis so different? An international historical comparison. American Economic Review, 98(2), 339–344.CrossRefGoogle Scholar
  61. Rochet J. C. (2015). The bank capital controversy, European economy. Banks, Regulation and the Real sector, No. 1.Google Scholar
  62. Roger, S., & Vitek, F. (2012, February). The global macroeconomic costs of raising bank capital adequacy requirements. IMF Working Paper 12(44).Google Scholar
  63. Taylor, A. M. (2015). Credit, financial stability, and the macroeconomy. NBER Working Paper, 21039.Google Scholar
  64. White, W. R. (2009). Should monetary policy “lean or clean?”, Federal Reserve Bank of Dallas, globalization and monetary policy institute. Working Paper No. 34.Google Scholar
  65. Yellen, J. L. (2011). Macroprudential supervision and monetary policy in the post-crisis world. Business Economics, 46(1), 3–12.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Antonella Cappiello
    • 1
  1. 1.Department of Economics and ManagementUniversity of PisaPisaItaly

Personalised recommendations