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Credit Growth and the Effectiveness of Reserve Requirements and Other Macroprudential Instruments in Latin America

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10.10.2023

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Both cross-border and domestic bank credit are (generally) denominated in multiplecurrencies. The BIS international banking statistics in combination with domestic bank creditdata from the IMF’s International Financial Statistics, along with some assumptions, yield anestimate of the currency breakdown of total credit to non-banks (either including or excludingbank credit to governments) in a particular country. This breakdown allows us to expresscredit stocks at constant exchange rates (in this particular case, end-Q2 2011 rates). This, inturn, yields credit growth rates that are (largely) undistorted by exchange rate movementsand thus provides a better measure of credit growth....
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Credit Growth and the Effectiveness of Reserve Requirements and Other Macroprudential Instruments in Latin America

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