Journal of Banking & Finance Vol. 176 2025
Differential effects of macroprudential policy
Abstract
We construct a comprehensive dataset linking macroprudential policy instruments to household survey data from European Union countries. We show that two commonly used lender-based macroprudential policy instruments — levy on financial institutions and minimum capital requirement — affect new mortgage loans depending on the household’s income levels. Following higher levies on financial institutions, higher-income households on average experience a larger reduction in mortgage loan size compared to lower-income households. In contrast, following higher minimum capital requirements, lower-income households on average experience a larger reduction in loan size. We provide evidence of the different channels through which these differential effects operate.
- DOI
- 10.1016/j.jbankfin.2025.107456
- Volume
- 176
- Pages
- 107456
- Language
- en
- Sources
- crossref openalex bibtex:phds-export.bib