Macroprudential regulation

Research in this section focuses on understanding and investigating the role of bank regulation, particularly (macro) prudential in influencing banking sector behaviour

Regulation and bank lending in South Africa: A narrative index approach

Conditional forecasting

Estimating the effects of macroprudential and finacial regulation.

Author X. Sibande, D. Nxumalo, K. Mncube, S. Koch, N. Viegi.

Publish Date

This study estimates and contrasts the impact of macroprudential and financial inclusion policies. The results suggest that macroprudential policy is working as intended as it is associated with increases in interest rates on unsecured lending rates, decreases in short-term secured and mortgage lending rates.

Bank lending and macroprudential regulation: A narrative approach

Conditional forecasting

Estimating the effects of macroprudential regulation on bank lending.

Author Keaoleboga Mncube

Publish Date

This paper investigates and estimates the macroeconomic effects of regulatory changes in the South African banking industry, by introducing narrative series capturing regulatory changes. The estimations are perfomed in a Bayesian Vector Autoregression (BVAR(X)) and Local Projections-Instrumental Variables (LP-IV) settings. The results show both a contraction and increase in credit extension following regulatory changes.

Timeline of major macroprudential regulatory changes

Conditional forecasting

Major macroprudential regulatory changes in South Africa.

Author Keaoleboga Mncube

Publish Date

This figure shows a timeline of major macroprudential regulatory changes in the South African banking industry.