Discussion paper

DP15895 Do macroprudential policies affect non-bank financial intermediation?

We analyse how macroprudential policies (MaPs), largely applied to banks and to a lesser extent borrowers, affect non-bank financial intermediation (NBFI). Using data for 24 of the jurisdictions participating in the Financial Stability Board’s monitoring exercise over the period 2002–17, we study the effects of MaP episodes on bank assets and on those NBFI activities that may involve bank-like financial stability risks (the narrow measure of NBFI). We find that a net tightening of domestic MaPs increases these NBFI activities and decreases bank assets, raising the NBFI share in total financial assets. By contrast, a net tightening of MaPs in foreign jurisdictions leads to a reduction of the NBFI share – the effect of a drop in NBFI activities and an increase in domestic banking assets. Tightening and easing MaPs have largely symmetric effects on NBFI. We find that the effect of MaPs (both domestic and foreign) is economically and statistically significant for all those NBFI economic functions that may pose risks to financial stability.


Claessens, S, G Cornelli, L Gambacorta, F Manaresi and Y Shiina (2021), ‘DP15895 Do macroprudential policies affect non-bank financial intermediation?‘, CEPR Discussion Paper No. 15895. CEPR Press, Paris & London. https://cepr.org/publications/dp15895