Analysis of the efficiency of macroprudential policy

Abstract: This thesis evaluates the efficiency of macroprudential policy tools by analysing their effect on credit growth. Two models are being used to analyse the effects of the policy tools on credit growth. At first an IV approach which results in a weak instrument. Additionally, there is a simply dynamic panel data analysis. Both methods get compared and results suggest that the policy tool Loan Loss Provision seems to be especially efficient in the EU-28 area. Moreover, does the analysis show that emerging and developing economies have different policy tools that help them in diminishing credit growth.