【主题】Targeted Reserve Requirements for Macroeconomic Stabilization
【摘要】We study the effectiveness of targeted reserve requirements (RR) as a policy tool for macroeconomic stabilization. Targeted RR adjustments were implemented in China during both the 2008-09 global financial crisis and the recent COVID-19 pandemic. We develop a model in which risky firms with idiosyncratic productivity borrow from two types of banks---local or national---to finance working capital. National banks provide liquidity services, while local banks have superior monitoring technologies, such that both types coexist. Firms pay a fixed cost if they switch lenders, and they choose to switch only under large shocks. Reducing RR on local banks boosts leverage and aggregate output, whereas reducing RR on national banks has an ambiguous output effect. Target RR policy that reduces RR for local banks relative to national banks can ease bank switching costs following large recessionary shocks, stabilizing macroeconomic fluctuations. However, targeted RR also boosts local bank leverage, increasing risks of default and raising financial stability concerns.