Equilibrium Credit : The Reference Point for Macroprudential Supervisors

Equilibrium credit is an important concept because it helps identify excessive credit provision. This paper proposes a two-stage approach to determine equilibrium credit. It uses two stages to study changes in the demand for credit due to varying l...

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Bibliographic Details
Main Authors:	Buncic, Daniel, Melecky, Martin
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ABSOLUTE VALUE ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ADVANCED ECONOMIES ARIMA ASSET PRICE ASSET PRICES ASSETS BANK BRANCHES BANK CREDIT BANKING SUPERVISION BENCHMARK BORROWING BORROWING COSTS BUFFER BUSINESS CYCLE CAPITAL INFLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CENTRAL BANK INDEPENDENCE CENTRAL BANKS CONSUMER PRICE INFLATION CONSUMERS CORRELATION COEFFICIENT COST EFFECTIVENESS COST OF CREDIT COVARIANCE MATRIX CREDIT AVAILABILITY CREDIT GROWTH CREDIT NEEDS CREDIT PROVISION CREDIT REQUIREMENTS CURRENCY UNITS DEBT DEBT SECURITIES DEFLATION DEMAND FOR CREDIT DEPENDENT VARIABLE DEPENDENT VARIABLES DEPOSIT DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISEQUILIBRIUM DISTORTIONS DIVERSIFICATION DOMESTIC BANKS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC DEBT MARKETS DOMESTIC INTEREST RATE ECONOMETRIC MODEL ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC THEORY ECONOMIC TRANSACTIONS ECONOMICS LITERATURE ELASTICITY EMERGING MARKET EMERGING MARKET ECONOMIES EQUILIBRIUM EQUILIBRIUM CREDIT EQUILIBRIUM LEVEL ERROR CORRECTION TERM EXCHANGE RATE EXCLUSION EXPLANATORY VARIABLES FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ^ DEPTH FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEEPENING FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL PORTFOLIOS FINANCIAL RISKS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FINANCING NEEDS FOREIGN CURRENCY FOREIGN INTEREST FOREIGN INTEREST RATE FULL EMPLOYMENT FUTURE RESEARCH GDP GDP DEFLATOR GDP PER CAPITA GREATER ACCESS INCOME INCOME ELASTICITY INDEPENDENT MONETARY POLICY INDICATOR VARIABLE INFLATION INFLATION RATE INSTITUTIONAL DEVELOPMENT INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BORROWING INTERNATIONAL FINANCIAL STATISTICS INTERPOLATION INVESTMENT DIVERSIFICATION LACK OF CREDIT LEVELS OF ACCESS LEVELS OF CREDIT LOCAL CURRENCY LONG-RUN EQUILIBRIUM MACROECONOMICS MAJOR CURRENCIES MARKET ECONOMIES MIDDLE INCOME COUNTRIES MONETARY POLICY MONEY DEMAND MORAL HAZARD NOMINAL EXCHANGE RATE OPEN ECONOMIES OPEN ECONOMY PORTFOLIO PORTFOLIO DIVERSIFICATION POSITIVE COEFFICIENT PRICE CHANGES PRICE ELASTICITIES PRICE ELASTICITY PRICE STABILITY PRIVATE CREDIT PRIVATE DEBT PRIVATE SECTOR CREDIT PROVISION OF CREDIT PRUDENTIAL SUPERVISION QUANTITY THEORY OF MONEY RANDOM VARIABLE REAL ^ INTEREST REAL ^ INTEREST RATE REAL EXCHANGE RATES REAL GDP REAL INCOME REAL INTEREST REAL INTEREST RATE REGULATORY FRAMEWORK REJECTION RETURN RETURNS RISK TAKING RISK WEIGHTED ASSETS SAVINGS SAVINGS DEPOSITS SCATTER PLOT SERIAL CORRELATION SHARE OF CREDIT SPEED OF ADJUSTMENT SPEEDY ADJUSTMENTS STABLE ECONOMIC GROWTH STATISTICAL ESTIMATION SUPPLY OF CREDIT SUPPLY SIDE TRANSACTION VELOCITY OF MONEY WEALTH WEALTH EFFECT WEIGHTS WORLD INTEREST RATE
Online Access:	http://documents.worldbank.org/curated/en/2013/02/17280441/equilibrium-credit-reference-point-macroprudential-supervisors http://hdl.handle.net/10986/13151