Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/31632
Title: A Broader View of Housing-Market Macroprudential Measures
Authors: Davis, EP
Keywords: housing market;macroprudential policy;bank risk;bank profitability
Issue Date: 31-Jan-2023
Publisher: Brunel University London
Citation: Davis, E.P. (2023) 'A Broader View of Housing-Market Macroprudential Measures', Brunel Economics and Finance Working Paper, No. 2302. Available at: https://www.brunel.ac.uk/economics-and-finance/research/pdf/2302-Jan-PD-Web-article-housing-market-macroprudential.pdf (accessed: 20 February 2025).
Series/Report no.: Brunel Economics and Finance Working Paper;No. 2302
Abstract: Housing-market macroprudential measures are among the most commonly used by policymakers, but there remain a number of unresolved issues arising from their use. For example, there is some ambiguity concerning the objective of housing-market macroprudential policy, which may in turn lead to issues inter alia in terms of accountability; some issues arise from standard practice in macroprudential policy modelling, including consistent measurement of policies in cross-country datasets; and we contend that a wider range of effects of LTV/DSTI policy should be considered beyond their immediate effect on mortgage lending and house prices. Based on our own research, we suggest that there is some indication that banks may respond to housing market controls with greater balance sheet risk. This may require consideration of what additional regulatory policies are needed to ensure overall financial stability when housing-market macroprudential policies are applied.
Description: JEL Classification: E44, E58, G17, G28
URI: https://bura.brunel.ac.uk/handle/2438/31632
Other Identifiers: ORCiD: E. Philip Davis https://orcid.org/0000-0002-3241-8626
Appears in Collections:Dept of Economics and Finance Research Papers

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