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dc.contributor.authorDavis, EP-
dc.contributor.authorKarim, D-
dc.contributor.authorNoel, D-
dc.identifierORCiD IDs: E Philip Davis -; Dilruba Karim -
dc.identifier.citationDavis, E.P, Karim, D. and Noel, D. (2022) 'The Effects of Macroprudential Policy on Banks’ Profitability', International Review of Financial Analysis, 80, pp. 1-27. doi: 10.1016/j.irfa.2021.101989.en_US
dc.description.abstractCopyright © 2021 The Author(s). We estimate the effects of macroprudential policy on bank profitability, using a sample of 7250 global banks over 1990–2018. A number of policy measures have a negative impact on profitability, but these effects vary according to countries' economic development, bank type and time period. Macroprudential policy also adversely affects profitability of small and highly capitalised banks more than larger and less capitalised banks. Comparing our results with existing estimates of the impact of macroprudential policy on credit expansion, some measures are found to reduce lending but not profitability; others affect both negatively; and some affect profitability with no significant effect on lending. Since it is desirable for banks to make profits and thus be able to build up capital from retained earnings, our results suggest that care is needed in choosing measures according to their effects on bank profitability.-
dc.format.extent1 - 27-
dc.rightsCopyright © 2021 The Author(s). Published by Elsevier Inc. under a Creative Commons license (
dc.subjectmacroprudential policyen_US
dc.subjectbank profitabilityen_US
dc.subjectreturn of average assetsen_US
dc.subjectreturn on average equityen_US
dc.titleThe Effects of Macroprudential Policy on Banks' Profitabilityen_US
dc.relation.isPartOfInternational Review of Financial Analysis-
pubs.publication-statusPublished online-
dc.rights.holderThe Author(s)-
Appears in Collections:Dept of Economics and Finance Research Papers

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