New data reveals impact of macroprudential policies on EU banking sector.
A new data set called MaPPED was created to track macroprudential policies in EU banking from 1995-2014. The data shows that different EU countries used these policies in varying ways over time. Capital buffers, lending restrictions, and maturity mismatch caps had an impact on credit to non-financial businesses, while sectoral risk weights were less effective in controlling credit growth.