With Great Power Comes Great Responsibility : Macroprudential Tools at Work in Canada /

The goal of this paper is to assess the effectiveness of the policy measures taken by Canadian authorities to address the housing boom. We find that the the last three rounds of macroprudential policies implemented since 2010 were associated with lower mortgage credit growth and house price growth....

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Bibliografiske detaljer
Hovedforfatter: Krznar, Ivo
Andre forfattere: Morsink, James
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2014.
Serier:IMF Working Papers; Working Paper ; No. 2014/083
Online adgang:Full text available on IMF
Beskrivelse
Summary:The goal of this paper is to assess the effectiveness of the policy measures taken by Canadian authorities to address the housing boom. We find that the the last three rounds of macroprudential policies implemented since 2010 were associated with lower mortgage credit growth and house price growth. The international experience suggests that-in addition to tighter loan-to-value limits and shorter amortization periods-lower caps on the debt-to-income ratio and higher risk weights could be effective if the housing boom were to reignite. Over the medium term, the authorities could consider structural measures to further improve the soundness of housing finance.
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Fysisk beskrivelse:1 online resource (38 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students