Séminaire Cournot – Michael Brei (U. Lille)

Détails de l'événement :

Nous avons le plaisir d’accueillir pour la prochaine séance du séminaire Cournot du BETA organisé avec le soutien de la FSEG ce vendredi 05/06, à 14h00 :

Michael Brei (U. Lille)

qui nous présentera son article intitulé

Reserve requirements, excess liquidity and bank lending: Evidence from the Caribbean and Central America

Abstract: This paper investigates the impact of two major central bank policy instruments, namely adjustments in reserve requirements and policy rates, on individual banks operating in Central America and the Caribbean. Using information on 116 banks from 20 jurisdictions, we find that banks in the two regions respond to tighter reserve requirements by increasing their holdings of cash and eligible reserve assets. Importantly, there is a concomitant slowdown in lending one year after the central banks’ policy tightening. Policy rate changes, however, show limited impact on bank reserves and credit intermediation. From this perspective, adjustments in reserve requirements represent an effective countercyclical policy tool in mitigating credit cycles, even in banking systems with excess liquidity. For the small island economies, the results should be interpreted with caution, as tighter reserve requirements are associated with heightened credit risks one year after the policy tightening, potentially reflecting increased risk-taking by banks in pursuit of higher yields.

Si vous souhaitez rencontrer Michael Brei, merci de contacter Thierry Betti.