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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.

Banks and Banking --- Macroeconomics --- Money and Monetary Policy --- Real Estate --- General Financial Markets: Government Policy and Regulation --- Financial Institutions and Services: Government Policy and Regulation --- Studies of Particular Policy Episodes --- Housing Supply and Markets --- Interest Rates: Determination, Term Structure, and Effects --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Financial Markets and the Macroeconomy --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Banking --- Property & real estate --- Monetary economics --- Housing prices --- Central bank policy rate --- Credit --- Macroprudential policy instruments --- Foreign banks --- Prices --- Financial services --- Money --- Financial sector policy and analysis --- Financial institutions --- Housing --- Interest rates --- Economic policy --- Banks and banking, Foreign --- Hong Kong Special Administrative Region, People's Republic of China