## The Micro Impact of Macroprudential Policies: Firm-Level Evidence

_IMF Working Papers, December 7, 2018_

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## Bibliographic details
- Authors: Meghana Ayyagari, Thorsten Beck
- Published: December 7, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484385654.001

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### Data and scope
- Sample: balance sheet data on 900,000 firms from 48 countries.
- Policy period examined: 2003-2011.
- Publication: IMF Working Papers, Working Paper No. 2018/267, Issue 267, Pages: 65, Volume: 2018.
- DOI: https://doi.org/10.5089/9781484385654.001
- Authors: Meghana Ayyagari, Thorsten Beck.
- Publication date: December 7, 2018.

### Main empirical findings
- Macroprudential policies are associated with lower credit growth across the firm sample.
- Effects are especially significant for micro, small and medium enterprises (MSMEs) and young firms.
- Among MSMEs and young firms, those with weaker balance sheets exhibit lower credit growth in conjunction with the adoption of macroprudential policies, suggesting an enhancement of financial stability.
- Macroprudential policies have real effects: they are associated with lower investment growth and lower sales growth.

### Interpretation and channels
- Firms most affected are those the literature identifies as more financially constrained and bank dependent (MSMEs and young firms).
- The differential impact by balance sheet strength implies macroprudential tightening can disproportionately restrict credit to weaker firms, contributing to financial system resilience.

### Subject areas and keywords (as listed)
- Subjects: Central bank policy rate, Economic sectors, Financial crises, Financial sector policy and analysis, Financial services, Global financial crisis of 2008-2009, Macroprudential policy, Macroprudential policy instruments, Small and medium enterprises.
- Keywords: balance sheet data, Central bank policy rate, financial development, financing constraint, financing growth, firm assets, firm characteristic, firm financing, Global, Global financial crisis of 2008-2009, macroprudential policies, Macroprudential policy, Macroprudential policy instruments, micro firm, return on assets, Small and medium enterprises, WP.

*Source: Meghana Ayyagari and Thorsten Beck, "The Micro Impact of Macroprudential Policies: Firm-Level Evidence", IMF Working Papers No. 2018/267, December 7, 2018.*

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_Source: https://www.imf.org/en/publications/wp/issues/2018/12/07/the-micro-impact-of-macroprudential-policies-firm-level-evidence-46377_