Prudential Policies and their Impact on Credit in the United States

Serie

• BIS Working Papers

Resumen

• We analyze how two types of recently used prudential policies affected the supply of credit in the United States. First, we test whether the U.S. bank stress tests had any impact on the supply of mortgage credit. We find that the first Comprehensive Capital Analysis and Review (CCAR) stress test in 2011 had a negative effect on the share of jumbo mortgage originations and approval rates at stress-tested banks-banks with worse capital positions were impacted more negatively. Second, we analyze the impact of the 2013 Supervisory Guidance on Leveraged Lending and subsequent 2014 FAQ notice, which clarified expectations on the Guidance. We find that the share of speculative-grade term-loan originations decreased notably at regulated banks after the FAQ notice.

autores

• Calem, Paul S.
• Correa, Ricardo
• Lee, Seung Jung

fecha de publicación

• 2017-05

Área temática

• G21 - Bancos; Instituciones de depósito; Instituciones Microfinancieras; Hipotecas
• G23 - Instituciones financieras (excepto bancos); Instrumentos financieros; Inversores institucionales
• G28 - Instituciones y servicios financieros: Política pública y regulación

Enfoque geográfico

• North America  Continent
• United States of America  Country

Líneas de investigación

• Bank Stress Tests
• CCAR
• Home Mortgage Disclosure Act (HMDA) Data
• Jumbo Mortgages
• Leveraged Lending
• Macroprudential Policy
• Syndicated Loan Market

Identificador de objeto digital (DOI)

• https://doi.org/10.1016/j.jfi.2019.04.002

Issue

• 635