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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.

Credit control. --- Bank liquidity. --- Financial risk management. --- Risk management --- Liquidity (Economics) --- Credit --- Credit allocation --- Credit policy --- Monetary policy --- Government policy --- Macroeconomics --- Money and Monetary Policy --- Central Banks and Their Policies --- Financial Institutions and Services: Government Policy and Regulation --- Financial Markets and the Macroeconomy --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Macroeconomics: Consumption --- Saving --- Wealth --- Monetary economics --- Macroprudential policy instruments --- Macroprudential policy --- Consumer credit --- Consumption --- Economic policy --- Economics

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This Technical Note on Macroprudential Policy Framework for the Republic of Poland highlights that the present macroprudential policy framework provides a sound basis for macroprudential oversight of the financial system and was established by law in November 2015. Its relatively recent establishment implies that practical experience with the conduct of macroprudential policy under the framework is still limited. Initial experience is favorable, however, it remains to be seen how the framework will function under more challenging circumstances. The Financial Stability Committee—Macroprudential (FSC-M) has recommended a variety of measures to provide incentives for voluntary restructuring of foreign exchange housing loans extended by Polish banks. It is recommended that the FSC-M further strengthens its communication in order to increase transparency and accountability, considers a more active use of targeted statements as a policy instrument, and increases the involvement of external experts in the preparation of its meetings.

Economic policy. --- Economic nationalism --- Economic planning --- National planning --- State planning --- Economics --- Planning --- National security --- Social policy --- Finance: General --- Macroeconomics --- General Financial Markets: Government Policy and Regulation --- Financial Markets and the Macroeconomy --- Finance --- Systemic risk --- Systemic risk assessment --- Macroprudential policy --- Financial sector stability --- Financial stability assessment --- Financial sector policy and analysis --- Financial risk management --- Financial services industry --- Economic policy --- Poland, Republic of

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This technical note evaluates the domestic macroprudential policy framework in Malta and provides recommendations to strengthen it. It assesses: the domestic institutional arrangements; the systemic risk monitoring framework; and the macroprudential policy toolkit. It also assesses current financial vulnerabilities in Malta to develop specific policy recommendations. The paper also reviews the current domestic institutional arrangements and provides recommendations and discusses the existing systemic risk monitoring framework and provides options to enhance it further. The legal backing of inter-agency coordination could be further strengthened. The report highlights that the planned introduction of borrower-based measures is a welcome step to proactively address a build-up of vulnerabilities in the housing and household sectors. There is scope to refine the design of the planned borrower-based measures to reduce uncertainty over policy effects. The Central Bank of Malta plans to introduce borrower-based measures to proactively address the potential build-up of vulnerabilities in the housing and household sectors.

Banking --- Banks and Banking --- Banks and banking --- Banks --- Depository Institutions --- Economic policy --- Finance --- Finance: General --- Financial institutions --- Financial Markets and the Macroeconomy --- Financial risk management --- Financial sector policy and analysis --- Financial sector stability --- Financial services industry --- General Financial Markets: Government Policy and Regulation --- Industries: Financial Services --- Loans --- Macroeconomics --- Macroprudential policy --- Micro Finance Institutions --- Mortgages --- Systemic risk assessment --- Malta

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This Financial System Stability Assessment paper on Thailand highlights that assets of the insurance and mutual fund sectors have doubled as a share of gross domestic product over the last decade, and capital markets are largely on par with regional peers. The report discusses significant slowdown in China and advanced economies, a sharp rise in risk premia, and entrenched low inflation would adversely impact the financial system. Stress tests results suggest that the banking sector is resilient to severe shocks and that systemic and contagion risks stemming from interlinkages are limited. Financial system oversight is generally strong, but the operational independence of supervisory agencies can be strengthened further. The operational independence of supervisory agencies can be strengthened further by reducing the involvement of the Ministry of Finance in prudential issues and ensuring that each agency has full control over decisions that lie within its areas of responsibility.

Financial crises --- Balance of trade --- Banking --- Banks and Banking --- Banks and banking --- Banks --- Commercial banks --- Depository Institutions --- Economic policy --- Empirical Studies of Trade --- Exports and Imports --- Finance --- Finance: General --- Financial Institutions and Services: Government Policy and Regulation --- Financial institutions --- Financial Markets and the Macroeconomy --- Financial sector policy and analysis --- Financial sector stability --- Financial services industry --- General Financial Markets: Government Policy and Regulation --- International economics --- International trade --- Liquidity stress testing --- Macroeconomics --- Macroprudential policy instruments --- Micro Finance Institutions --- Mortgages --- Trade balance --- Thailand

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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