Ltv And Dti Limits Going Granular

Author : Luis I. Jacome H.,Ms.Srobona Mitra
Publisher : International Monetary Fund
Page : 41 pages
File Size : 44,8 Mb
Release : 2015-07-15
Category : Business & Economics
ISBN : 9781513551449

Get Book

LTV and DTI Limits—Going Granular by Luis I. Jacome H.,Ms.Srobona Mitra Pdf

There is increasing interest in loan-to-value (LTV) and debt-service-to-income (DTI) limits as many countries face a new round of rising house prices. Yet, very little is known on how these regulatory instruments work in practice. This paper contributes to fill this gap by looking closely at their use and effectiveness in six economies—Brazil, Hong Kong SAR, Korea, Malaysia, Poland, and Romania. Insights include: rapid growth in high-LTV loans with long maturities or in the number of borrowers with multiple mortgages can be signs of build up in systemic risk; monitoring nonperforming loans by loan characteristics can help in calibrating changes in the LTV and DTI limits; as leakages are almost inevitable, countries strive to address them at an early stage; and, in most cases, LTVs and DTIs were effective in reducing loan-growth and improving debt-servicing performances of borrowers, but not always in curbing house price growth.

Author : Luis I. Jácome,Srobona Mitra
Publisher : Unknown
Page : 128 pages
File Size : 47,9 Mb
Release : 2015
Category : Bank loans
ISBN : 1513507486

Get Book

LTV and DTI Limits by Luis I. Jácome,Srobona Mitra Pdf

There is increasing interest in loan-to-value (LTV) and debt-service-to-income (DTI) limits as many countries face a new round of rising house prices. Yet, very little is known on how these regulatory instruments work in practice. This paper contributes to fill this gap by looking closely at their use and effectiveness in six economies-Brazil, Hong Kong SAR, Korea, Malaysia, Poland, and Romania. Insights include: rapid growth in high-LTV loans with long maturities or in the number of borrowers with multiple mortgages can be signs of build up in systemic risk; monitoring nonperforming loans by

Author : Irene van Staveren
Publisher : Springer Nature
Page : 214 pages
File Size : 43,5 Mb
Release : 2021-01-18
Category : Business & Economics
ISBN : 9783030576097

Get Book

Alternative Ideas from 10 (Almost) Forgotten Economists by Irene van Staveren Pdf

How should we address today’s big problems, and what we can take from icons of economics past? How would John Maynard Keynes have resolved today’s debt problem, or how would Adam Smith have assessed the European carbon emission trading market? This book applies the ideas of ten renowned economists (Marx, Minsky, Keynes, Knight, Bergmann, Veblen, Sen, Myrdal, Smith, Robinson) to real world economic problems, directly or indirectly related to the causes and consequences of the 2008 financial crisis. Each chapter presents an economist, and structures the ‘problem’, the ‘insight’ (the economist’s idea), the ‘economist’ (short bio), and two ‘practices’ offering real-world alternatives. This book presents a lively and original approach that will be of interest to economists and non-economists alike, discussing key elements of an economics for a postcapitalist economy and connecting policy insights to real-world problems of today.

Author : International Monetary Fund. Monetary and Capital Markets Department
Publisher : International Monetary Fund
Page : 81 pages
File Size : 42,5 Mb
Release : 2018-07-19
Category : Business & Economics
ISBN : 9781484369548

Get Book

Euro Area Policies by International Monetary Fund. Monetary and Capital Markets Department Pdf

While national authorities are still largely responsible for supervising the nonbank sector and applying the macroprudential framework, European Union (EU)-level organizations’ supervisory role is growing. Further convergence and strengthening of supervision of insurers and investment firms is consistent with the goals of an EU single market and financial stability. The macroprudential framework functions well but could be simplified and expanded to cover aspects of the nonbank sector.

Author : Juliana Dutra Araujo,Manasa Patnam,Ms.Adina Popescu,Mr.Fabian Valencia,Weijia Yao
Publisher : International Monetary Fund
Page : 53 pages
File Size : 55,8 Mb
Release : 2020-05-22
Category : Business & Economics
ISBN : 9781513545400

Get Book

Effects of Macroprudential Policy: Evidence from Over 6,000 Estimates by Juliana Dutra Araujo,Manasa Patnam,Ms.Adina Popescu,Mr.Fabian Valencia,Weijia Yao Pdf

This paper builds a novel database on the effects of macroprudential policy drawing from 58 empirical studies, comprising over 6,000 results on a wide range of instruments and outcome variables. It encompasses information on statistical significance, standardized magnitudes, and other characteristics of the estimates. Using meta-analysis techniques, the paper estimates average effects to find i) statistically significant effects on credit, but with considerable heterogeneity across instruments; ii) weaker and more imprecise effects on house prices; iii) quantitatively stronger effects in emerging markets and among studies using micro-level data; and iii) statistically significant evidence of leakages and spillovers. Other findings include relatively stronger impacts for tightening than loosening actions and negative effects on economic activity in the near term.

Author : Tobias Adrian,Mr.Douglas Laxton,Mr.Maurice Obstfeld
Publisher : International Monetary Fund
Page : 297 pages
File Size : 52,5 Mb
Release : 2018-04-13
Category : Business & Economics
ISBN : 9781484325940

Get Book

Advancing the Frontiers of Monetary Policy by Tobias Adrian,Mr.Douglas Laxton,Mr.Maurice Obstfeld Pdf

Contributors working at the International Monetary Fund present 14 chapters on the development of monetary policy over the past quarter century through the lens of the evolution of inflation-forecast targeting. They describe the principles and practices of inflation-forecast targeting, including managing expectations, the implementation of a forecasting and policy analysis system, monetary operations, monetary policy and financial stability, financial conditions, and transparency and communications; aspects of inflation-forecast targeting in Canada, the Czech Republic, India, and the US; and monetary policy challenges faced by low-income countries and how inflation-forecast targeting can provide an anchor in countries with different economic structures and circumstances.

Author : Dilyana Dimova,Ms.Piyabha Kongsamut,Jérôme Vandenbussche
Publisher : International Monetary Fund
Page : 81 pages
File Size : 50,6 Mb
Release : 2016-02-15
Category : Business & Economics
ISBN : 9781498343091

Get Book

Macroprudential Policies in Southeastern Europe by Dilyana Dimova,Ms.Piyabha Kongsamut,Jérôme Vandenbussche Pdf

This paper presents a detailed account of the rich set of macroprudential measures taken in four Southeastern European countries—Bulgaria, Croatia, Romania, and Serbia—during their synchronized boom and bust cycles in 2003–12, and assesses their effectiveness. We find that only strong measures helped contain domestic credit growth, the share of foreigncurrency- denominated loans provided by the domestic banking sector, or the domestic banking sector’s reliance on foreign borrowing during the boom years. We also find that circumvention via direct external borrowing often fully offset the effectiveness of these strict measures, and thatmeasures taken during the bust had no discernible impact. We conclude that (i) proper calibration of macroprudential measures is of the essence; (ii) only strong, broad-based macroprudential measures can contain credit booms; (iii) econometric studies of macroprudential policy effectiveness should focus on measures rather than on instruments (i.e. classes of measures) and in so doing allow for possible non-linear and state-contingent effects.

Author : GASTON. SAHAY GELOS (RATNA.)
Publisher : International Monetary Fund
Page : 2040 pages
File Size : 49,6 Mb
Release : 2023
Category : Electronic
ISBN : 9798400211263

Get Book

SHOCKS AND CAPITAL FLOWS by GASTON. SAHAY GELOS (RATNA.) Pdf

Author : Edward S Robinson,Claudio Borio,Hyun Song Shin
Publisher : World Scientific
Page : 724 pages
File Size : 46,5 Mb
Release : 2022-12-28
Category : Business & Economics
ISBN : 9789811259449

Get Book

Macro-financial Stability Policy In A Globalised World: Lessons From International Experience - Selected Papers From The Asian Monetary Policy Forum 2021 Special Edition And Mas-bis Conference by Edward S Robinson,Claudio Borio,Hyun Song Shin Pdf

Since at least the Great Financial Crisis, authorities around the world have increasingly relied on macroprudential policy to help secure financial stability and complement monetary policy as an integral element of a broader macro-financial stability framework. In today's interconnected global financial system, policy actions taken by the major advanced economies can have spillovers on the rest of the world through their impact on capital flows and exchange rates, potentially generating vulnerabilities across borders. Conversely, in emerging market economies, macroprudential policy as well as foreign exchange intervention and/or capital flow management policy can help mitigate the corresponding impact. This can in turn generate spillbacks on advanced economies — spillbacks that have become more sizeable as the emerging market economies' heft in the world has grown. Yet little is known about these interactions.The contents of this book are based on a conference held on 26-28 May 2021 and jointly hosted by the Monetary Authority of Singapore (MAS) and the Bank for International Settlements (BIS). It aims to contribute to existing literature on macro-financial policymaking by providing an overall conceptual framework and documenting the latest global trends and country experiences. In particular, it highlights the role of international spillovers and spillbacks, paying particular attention to emerging market economies. This book is essential reading for academics, graduate students and economic professionals. It can also serve as a handbook for policymakers at central banks, regulatory authorities and other government agencies tasked with designing and implementing macroprudential or more generally macro-financial stability policies. The book will also be of interest to researchers at international organisations.

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
Page : 18 pages
File Size : 51,5 Mb
Release : 2015-09-25
Category : Business & Economics
ISBN : 9781513592428

Get Book

IMF Research Bulletin, September 2015 by International Monetary Fund. Research Dept. Pdf

The September 2015 issue of the IMF Research Bulletin covers a range of research topics. The Research Summaries featured in this issue are “Lower for Longer: Neutral Rates in the United States” (Andrea Pescatori and Jarkko Turunen) and “Economic Principles for Resource Revenue Management” (Anthony J. Venables and Samuel Wills). The Q&A article looks at “Seven Questions on Financing for Development” (Amadou Sy) and the global development agenda. The issue also includes special announcements on the 2015 Annual Research Conference and the 2015 IMF Annual Report, as well as new IMF publications. Readers will also find a link to a top-viewed article from the “IMF Economic Review”—the IMF’s official research journal.

Author : Holzmann, Robert,Restoy, Fernando
Publisher : Edward Elgar Publishing
Page : 253 pages
File Size : 54,5 Mb
Release : 2022-10-07
Category : Business & Economics
ISBN : 9781802208894

Get Book

Central Banks and Supervisory Architecture in Europe by Holzmann, Robert,Restoy, Fernando Pdf

COVID-19 and other recent crises have proved the need to review the state-of-play and implement robust institutional frameworks in the complex, heterogenous and decentralised European financial supervisory architecture, this insightful book outlines what can be done to innovate the current set-up in the face of pressing issues like climate change, BigTech and crypto assets.

Author : Zohair Alam,Mr.Adrian Alter,Jesse Eiseman,Mr.R. G Gelos,Mr.Heedon Kang,Mr.Machiko Narita,Erlend Nier,Naixi Wang
Publisher : International Monetary Fund
Page : 57 pages
File Size : 54,9 Mb
Release : 2019-03-22
Category : Business & Economics
ISBN : 9781498302708

Get Book

Digging Deeper--Evidence on the Effects of Macroprudential Policies from a New Database by Zohair Alam,Mr.Adrian Alter,Jesse Eiseman,Mr.R. G Gelos,Mr.Heedon Kang,Mr.Machiko Narita,Erlend Nier,Naixi Wang Pdf

This paper introduces a new comprehensive database of macroprudential policies, which combines information from various sources and covers 134 countries from January 1990 to December 2016. Using these data, we first confirm that loan-targeted instruments have a significant impact on household credit, and a milder, dampening effect on consumption. Next, we exploit novel numerical information on loan-to-value (LTV) limits using a propensity-score-based method to address endogeneity concerns. The results point to economically significant and nonlinear effects, with a declining impact for larger tightening measures. Moreover, the initial LTV level appears to matter; when LTV limits are already tight, the effects of additional tightening on credit is dampened while those on consumption are strengthened.

Author : International Monetary Fund. Monetary and Financial Systems Dept.
Publisher : International Monetary Fund
Page : 139 pages
File Size : 42,6 Mb
Release : 2017-10-11
Category : Business & Economics
ISBN : 9781484320563

Get Book

Global Financial Stability Report, October 2017 by International Monetary Fund. Monetary and Financial Systems Dept. Pdf

The October 2017 Global Financial Stability Report finds that the global financial system continues to strengthen in response to extraordinary policy support, regulatory enhancements, and the cyclical upturn in growth. It also includes a chapter that examines the short- and medium-term implications for economic growth and financial stability of the past decades’ rise in household debt. It documents large differences in household debt-to-GDP ratios across countries but a common increasing trajectory that was moderated but not reversed by the global financial crisis. Another chapter develops a new macroeconomic measure of financial stability by linking financial conditions to the probability distribution of future GDP growth and applies it to a set of 20 major advanced and emerging market economies. The chapter shows that changes in financial conditions shift the whole distribution of future GDP growth.

Author : Mr.Tigran Poghosyan
Publisher : International Monetary Fund
Page : 42 pages
File Size : 44,6 Mb
Release : 2019-03-01
Category : Business & Economics
ISBN : 9781498301909

Get Book

How Effective is Macroprudential Policy? Evidence from Lending Restriction Measures in EU Countries by Mr.Tigran Poghosyan Pdf

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.

Author : Anjan V. Thakor
Publisher : Oxford University Press
Page : 256 pages
File Size : 48,6 Mb
Release : 2019-07-01
Category : Business & Economics
ISBN : 9780190919542

Get Book

The Purpose of Banking by Anjan V. Thakor Pdf

Banks and other financial institutions play a fundamental and yet divisive role in the health of any economy. As lenders they are important to everyone seeking a mortgage or a car loan. As investors they are essential gears of economic progress. And yet when crises hit and the economy tumbles, they are vilified. Is it possible for the banking and financial sectors to both be crisis-free and sustain economic growth that benefits everyone? This is the central question that Anjan Thakor, one of the leading analysts of banking and financial institutions, takes up in this insightful overview of the purpose of banking. He starts with the foundations of banks as safe-keepers of assets and providers of liquidity crucial to a dynamic economy. They manage risk, monitor borrowers, create trust, are providers of information, and facilitate innovation. And yet notwithstanding these essential purposes, the reputation of banks has suffered tremendously in the wake of crises that have harmed the financial sector, the real economy, and many people. The reason, Thakor argues, is that banks have lost sight of their higher purpose, which is tied to their role as safe-keepers of assets and creators of value. These essential economic functions should drive banks' culture, capital structure, and customer relationships. Credit ratings cannot replace relationships, leverage is no substitute for judgment, and the pursuit of profit should not come at the expense of prudence. Thakor shows that while governments can play an important role in creating the environment of banks, including through microprudential and macroprudential regulation, ultimately it is up to banks to improve their culture and align it with their purpose in society.