The effectiveness of macroprudential policies in the euro area

We combine narrative data from the MaPPED database and bank level information on loans, leverage and assets to evaluate the effects of macroprudential policies in the euro area from 2007 to 2017. The MaPPED database is a... [ view full abstract ]

We combine narrative data from the MaPPED database and bank level information on loans, leverage and assets to evaluate the effects of macroprudential policies in the euro area from 2007 to 2017. The MaPPED database is a comprehensive source of information about macroprudential policies (or policies of a similar scope) across euro area countries. Our use of micro rather than macro data allows us to better address endogeneity concerns. This paper contributes to the literature by using much richer data than before to analyse the effect of macroprudential policies on banks in the euro area.