Epure, MirceaMihai, IrinaMinoiu, CameliaPeydró, José-LuisUniversitat Pompeu Fabra. Departament d'Economia i Empresa2024-11-142024-11-142017-11-29http://hdl.handle.net/10230/33884We show that macroprudential policies dampen the impact of global financial conditions on local bank credit cycles. For identification, we exploit variation in the U.S. VIX and household and business credit registers in an emerging market economy where banks depend on foreign funding and macroprudential measures vary over the full cycle. Our results suggest that when the VIX is low, tighter macroprudential policies reduce household lending, notably for riskier (FX and high DSTI) loans and by banks dependent on foreign funding. Moreover, they increase (less regulated) local currency lending to real estate firms, while leaving business lending to other firms unchanged. Such periods are associated with less subsequent total lending to households and firms and with a lower share of FX loans at the local level. Consistently, when the VIX is low, tighter macroprudential policies dampen house prices and economic activity.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsGlobal financial cycle, household credit, and macroprudential policies<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">macroprudential policies</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">global financial cycle</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">cross-border spillovers</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">household credit</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">bank loans</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Management and Organization Studies</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Finance and Accounting</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>