Bank structure affects macro-prudential spillovers, BoE research finds
Capital requirements impact branches more than subsidiaries
Research published today by the Bank of England (BoE) finds the degree to which macro-prudential policies spill across borders depends on bank structures.
The working paper, On a tight leash: does bank organisational structure matter for macroprudential spillovers?, by Piotr Danisewicz, Dennis Reinhardt and Rhiannon Sowerbutts, draws on what the authors say is a novel dataset on changes in the intensity of macro-prudential policies across 70 countries.
The authors test how changes in macro
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