Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5083059 | International Review of Economics & Finance | 2017 | 26 Pages |
Abstract
This paper provides an empirical assessment of the effects of FX-related macroprudential policies introduced in Korea since 2010. Our main findings are as follows. First, Korea's recent FX-related macroprudential measures have been effective in curbing excessive capital inflows. In particular, these measures have contributed to mitigating FX market vulnerability. Second, the leverage caps had a relatively larger dampening effects on short-term foreign borrowings of foreign bank branches compared to those of domestic banks. By contrast, macroprudential stability levy has worked as a device to limit foreign borrowings for domestic banks, but not for foreign bank branches.
Related Topics
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Authors
Kyungmin Kim, Joo Yong Lee,