We analyze the joint impact of macroprudential and capital control measures on cross-border banking
flows, while controlling for multidimensional aspects in lender-and-borrower-relationships
(e.g., distance, cultural proximity, microprudential regulations). We uncover interesting spillover
effects from both types of measures when applied either by lender or borrowing countries, with
many of them most likely associated with circumvention or arbitrage incentives. While lender
countries' macroprudential policies reduce direct cross-border banking outflows, they are associated
with larger outflows through local affiliates. Direct cross-border inflows are higher in
borrower countries with more usage of macroprudential policies, and are linked to circumvention
motives. In the case of capital controls, most spillovers seem to be present through local affiliates.
We do not find evidence to support the idea that additional capital inflow controls could interact
with macro-prudential policies to mitigate cross-border spillovers.