{
  "title": "What Drives Credit Growth in Emerging Asia?",
  "publication": "IMF Working Papers, February 1, 2012",
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  "summary": "This paper seeks to uncover the main drivers of credit growth in emerging Asia using a multi-country structural vector autoregressive (SVAR) model.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The paper seeks to uncover the main drivers of credit growth in emerging Asia using a multi-country structural vector autoregressive (SVAR) model.\n- A two-block SVAR is developed whereby shocks within blocks are identified using sign restrictions, whereas shocks across the blocks are identified using a recursive (block-) Cholesky structure.\n- The authors find that domestic factors are more dominant than external factors in driving rapid credit growth in emerging Asia.\n- Domestic monetary policy is highlighted as particularly pivotal for managing rapid credit growth in emerging Asia."
    },
    {
      "heading": "Methodology",
      "content": "- Multi-country structural vector autoregressive (SVAR) model.\n- Two-block SVAR design:\n  - Within-block shocks identified using sign restrictions.\n  - Across-block shocks identified using a recursive (block-) Cholesky structure.\n- Econometric approaches noted in subject/keywords: Bayesian estimation, sign restrictions, Structural vector autoregression, SVAR."
    },
    {
      "heading": "Key findings and evidence",
      "content": "- Domestic factors dominate external factors in driving rapid credit growth in emerging Asia.\n- Domestic monetary policy can play a pivotal role in terms of managing rapid credit growth in emerging Asia."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Policymakers in emerging Asia should consider domestic monetary policy tools as central instruments to manage rapid credit growth.\n- Given the dominance of domestic drivers, region-specific macroprudential and monetary measures may be more effective than relying primarily on external adjustments.\n\n---\n\n Content in this bundle\n\n- wp1243\n  - wp1243 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1243 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/what-drives-credit-growth-in-emerging-asia-25710"
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    "Authors: Fei Han, Selim A Elekdag",
    "Published: February 1, 2012",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781463936440.001",
    "The paper seeks to uncover the main drivers of credit growth in emerging Asia using a multi-country structural vector autoregressive (SVAR) model.",
    "A two-block SVAR is developed whereby shocks within blocks are identified using sign restrictions, whereas shocks across the blocks are identified using a recursive (block-) Cholesky structure.",
    "The authors find that domestic factors are more dominant than external factors in driving rapid credit growth in emerging Asia.",
    "Domestic monetary policy is highlighted as particularly pivotal for managing rapid credit growth in emerging Asia.",
    "Multi-country structural vector autoregressive (SVAR) model.",
    "Two-block SVAR design:",
    "Econometric approaches noted in subject/keywords: Bayesian estimation, sign restrictions, Structural vector autoregression, SVAR.",
    "Domestic factors dominate external factors in driving rapid credit growth in emerging Asia.",
    "Domestic monetary policy can play a pivotal role in terms of managing rapid credit growth in emerging Asia.",
    "Policymakers in emerging Asia should consider domestic monetary policy tools as central instruments to manage rapid credit growth.",
    "Given the dominance of domestic drivers, region-specific macroprudential and monetary measures may be more effective than relying primarily on external adjustments.",
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