Research seminar: Michael Brei (University of Lille)

We would like to invite you to a research seminar by Michael Brei, Professor of Economics at the University of Lille.

Title: *Reserve Requirements, Excess Liquidity and Bank Lending: Evidence from the Caribbean and Central America*

Authors: Michael Brei (University of Lille), Alphonse Noah (University of Limoges), and Dorian Noel (Central Bank of Trinidad and Tobago)

Abstract: This paper investigates the impact of two major central bank policy instruments, namely adjustments in reserve requirements and policy rates, on individual banks operating in Central America and the Caribbean. Using information on 116 banks from 20 jurisdictions, we find that banks in the two regions tend to reduce lending one year after a tightening of reserve requirements. Policy rate changes show limited impact on banks’ credit intermediation. From this perspective, adjustments in reserve requirements represent an effective macroprudential countercyclical instrument in mitigating credit cycles, even in oligopolistic banking sectors with high levels of liquidity. In banking markets of the small island economies, tighter reserve requirements are associated with increased credit risks after one year, potentially reflecting increased risk-taking by banks in the pursuit of higher yields.

The seminar will take place on *Tuesday*, May 5, 2026, in Room 206 at 11:00.

A preliminary version of the paper is attached.

If you need a discussion slot with Prof. Brei, please write to Adam Geršl, and he will try to find a suitable time.

The list of all research seminars at IES (past and forthcoming) is available at: https://ies.fsv.cuni.cz/en/research/research-seminars