How Effective is Macroprudential Policy? : Evidence from Lending Restriction Measures in EU Countries /

This paper assesses the effectiveness of lending restriction measures, such as loan-to-value and debt-service-to-income ratios, in affecting developments in house prices and credit. We use data on 99 lending standard restrictions implemented in 28 EU countries over 1990-2018. The results suggest tha...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Poghosyan, Tigran
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2019.
سلاسل:IMF Working Papers; Working Paper ; No. 2019/045
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper assesses the effectiveness of lending restriction measures, such as loan-to-value and debt-service-to-income ratios, in affecting developments in house prices and credit. We use data on 99 lending standard restrictions implemented in 28 EU countries over 1990-2018. The results suggest that lending restriction measures are generally effective in curbing house prices and credit. However, the impact is delayed and reaches its peak only after three years. In addition, the impact is asymmetric, with tightening measures having weaker association with target variables compared to loosening measures. The association is stronger in countries outside of euro area and for legally-binding measures and measures involving sanctions. The results have practical implications for macroprudential authorities.
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وصف مادي:1 online resource (42 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students