Effectiveness of Macroprudential Policies in Central and Eastern European Countries

Published: 24/3/2017
Publication Working Papers
Issue W - 48
Author Mirna Dumičić
Date March 2017
JEL E58, E61, F55
ISSN 1334-0131


macroprudential policy, financial stability, credit growth, systemic risk, CEE countrie


This paper extends the publicly available datasets on the use of macroprudential policies in CEE countries, and provides an econometric assessment of the effectiveness of these policies in mitigating financial stability risks associated with excessive credit growth before the global financial crisis. The model results imply that macroprudential policies were more effective in slowing credit to households than credit to the non-financial corporate sector, mainly because the latter had access to non-bank and cross-border credit in addition to domestic bank credit.