This special feature is structured as follows. First, we present the main features of a public repository of studies on the effects of bank regulations, called FRAME (Financial Regulation Assessment: Meta Exercise). This repository, maintained by the BIS, is not intended to be another literature stocktake, but to serve as a novel tool that tracks, organises, standardises and disseminates findings from many studies. It can be updated with new findings on a continuous basis, with the possibility for researchers to report their own studies online. Second, we present selected insights from FRAME on the effects of bank capital and liquidity, and relevant regulations – the area where most analysis has been conducted – on banks’ funding costs, the passthrough of funding costs to lending rates, bank lending growth and the probability of a crisis. We show that there is a wide distribution of these estimated effects especially on bank lending. Third, we try to explain this heterogeneity using metaanalysis techniques. We document that one important driver of the heterogeneity is whether or not the analysis accounts for general equilibrium – that is, second-round – effects.
Frederic Boissay, Carlos Cantu, Stijn Claessens, and Alan Villegas
Bank for International Settlements
March 2019
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