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Macroprudential tools, credit growth and financial stability: Lessons from Central and Eastern European countries

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  • Cristina-Georgiana Zeldea

    (Institute for World Economy, Romanian Academy, Bucharest, Romania)

  • Mihai Nițoi

    (Department of International Business and Economics, Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

The turbulences that banking systems confronted over the past decades emphasized the importance of a sound macroprudential policy. Therefore, our study analyses the use and the types of macroprudential tools adopted by the authorities, in Central and Eastern European countries, from 2000 to 2018. Our findings reveal a degree of asymmetry within the regulatory framework. More exactly, the frequency, but also the nature of prudential instruments was not symmetrical in the Central and Eastern European countries. The heterogeneity also stands out from a time-varying perspective. We attribute this pattern to the different levels of financial stress that banking systems have been subjected to. Generally, we notice that the macroprudential tools aimed at taming the financial cycle

Suggested Citation

  • Cristina-Georgiana Zeldea & Mihai Nițoi, 2021. "Macroprudential tools, credit growth and financial stability: Lessons from Central and Eastern European countries," Journal of Financial Studies, Institute of Financial Studies, vol. 11(6), pages 156-178, December.
    • Handle: RePEc:fst:rfsisf:v:11:y:2021:i:6:p:156-178
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    References listed on IDEAS

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    More about this item

    Keywords

    Prudential framework; macroprudential tools; credit growth; Central and Eastern Europe; financial crisis;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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