{
  "title": "Macroprudential Policy and Bank Systemic Risk: Does Inflation Targeting Matter?",
  "publication": "IMF Working Papers, June 2, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112",
  "overlayPath": "/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112/index.md",
  "summary": "This paper investigates macroprudential policy effects on bank systemic risk and the role of inflation targeting in such effects.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- This paper investigates macroprudential policy effects on bank systemic risk and the role of inflation targeting in such effects.\n- Using bank-level data for 45 countries comprising various monetary and exchange rate regimes, the regime-dependent dynamic panel regression results point to complementarities between monetary and macroprudential policies.\n- The tightening of most macroprudential tools—including DSTI and LTV limits, and capital requirements—reduces bank systemic risk further under inflation targeting.\n- The findings lend credence to the view that inflation targeting strengthens macroprudential policy roles in mitigating financial stability risks."
    },
    {
      "heading": "Methods and Data",
      "content": "- Data: bank-level data for 45 countries comprising various monetary and exchange rate regimes.\n- Empirical approach: regime-dependent dynamic panel regression."
    },
    {
      "heading": "Key Findings",
      "content": "- Complementarities exist between monetary and macroprudential policies.\n- Tightening of most macroprudential tools reduces bank systemic risk more under inflation targeting.\n- Specific tools cited: DSTI limits, LTV limits, and capital requirements."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- Inflation targeting can strengthen macroprudential policy effectiveness in mitigating financial stability risks.\n- Policymakers may consider the interaction between monetary policy frameworks and macroprudential instruments when designing financial stability strategies.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112/bundle-manifest.json)",
    "Authors: Mohamed Belkhir, Sami Ben Naceur, Bertrand Candelon, Woon Gyu Choi, Farah Mugrabi",
    "Published: June 2, 2023",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400245008.001",
    "This paper investigates macroprudential policy effects on bank systemic risk and the role of inflation targeting in such effects.",
    "Using bank-level data for 45 countries comprising various monetary and exchange rate regimes, the regime-dependent dynamic panel regression results point to complementarities between monetary and macroprudential policies.",
    "The tightening of most macroprudential tools—including DSTI and LTV limits, and capital requirements—reduces bank systemic risk further under inflation targeting.",
    "The findings lend credence to the view that inflation targeting strengthens macroprudential policy roles in mitigating financial stability risks.",
    "Data: bank-level data for 45 countries comprising various monetary and exchange rate regimes.",
    "Empirical approach: regime-dependent dynamic panel regression.",
    "Complementarities exist between monetary and macroprudential policies.",
    "Tightening of most macroprudential tools reduces bank systemic risk more under inflation targeting.",
    "Specific tools cited: DSTI limits, LTV limits, and capital requirements.",
    "Inflation targeting can strengthen macroprudential policy effectiveness in mitigating financial stability risks.",
    "Policymakers may consider the interaction between monetary policy frameworks and macroprudential instruments when designing financial stability strategies.",
    "**Working Paper**"
  ],
  "related": [
    {
      "title": "Working Paper",
      "role": "paper",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/wp/2023/english/wpiea2023119-print-pdf.pdf",
      "summary": {
        "path": "/-/media/files/publications/wp/2023/english/wpiea2023119-print-pdf.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/wp/2023/english/wpiea2023119-print-pdf.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112/index.md",
    "json": "/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112/index.json",
    "bundleManifest": "/en/publications/wp/issues/2023/06/02/macroprudential-policy-and-bank-systemic-risk-does-inflation-targeting-matter-534112/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-16T22:38:31.982Z"
}