The Real Consequences of Macroprudential FX Regulations

Hyeyoon Jung
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引用次数: 5

Abstract

I exploit a natural experiment in South Korea to examine the real effects of macroprudential foreign exchange (FX) regulations designed to reduce risk-taking by financial intermediaries. By using cross-bank variation in the regulation’s tightness, I show that it causes a reduction in the supply of FX derivatives (FXD) and results in a substantial decline in exports for the firms that were heavily relying on FXD hedging. I offer a mechanism in which imbalances in hedging demand, banks’ costly equity financing, and firms’ costly switching of banking relationships play a central role in explaining the empirical findings.
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宏观审慎外汇监管的真正后果
我利用韩国的一个自然实验来检验旨在减少金融中介机构冒险的宏观审慎外汇(FX)监管的实际效果。通过使用监管紧度的跨银行变化,我表明它导致外汇衍生品(FXD)供应减少,并导致严重依赖FXD对冲的公司出口大幅下降。我提供了一种机制,其中对冲需求失衡、银行昂贵的股权融资和企业昂贵的银行关系转换在解释实证结果方面发挥了核心作用。
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