The Effect of LTV-Based Risk Weights on House Prices: Evidence from an Israeli Macroprudential Policy

2018 ◽  
Author(s):  
Steven Laufer ◽  
Nitzan Tzur-Ilan
Keyword(s):  
House Prices ◽  
Macroprudential Policy

Housing Finance in Canada: Looking Back to Move Forward

2014 ◽  
Vol 230 ◽  
pp. R45-R57 ◽  
Author(s):  
Lawrence L. Schembri
Keyword(s):  
Global Financial Crisis ◽  
House Prices ◽  
Housing Finance ◽  
Private Label ◽  
Macroprudential Policy ◽  
Mortgage Insurance ◽  
The Government ◽  
The Global Financial Crisis ◽  
The Right ◽  
Looking Back

The Canadian system of housing finance proved to be resilient and efficient during the global financial crisis and its aftermath. The system's effectiveness is the result of a rigorous prudential regulatory and supervisory regime coupled with targeted government guarantees of mortgage insurance and securitisation products. In the post-crisis period, household debt levels and house prices have risen, owing, in part, to accommodative monetary conditions necessary to support the economic recovery. These vulnerabilities were mitigated by tightening macroprudential policy, specifically mortgage insurance rules, and strengthening mortgage-underwriting standards. Looking ahead, the housing finance framework needs to be adjusted and strengthened by rebalancing the risk exposures away from the government towards the private sector participants in the housing finance market. Although some measures have already been taken for this purpose, more adjustments may be needed to create the right incentives and achieve a sustainable rebalancing in risk exposures. Measures should also be considered to promote a liquid private-label mortgage securitisation market in Canada.

scholarly journals Comparing Housing Booms and Mortgage Supply in the Major OECD Countries

2014 ◽  
Vol 230 ◽  
pp. R3-R15 ◽  
Author(s):  
Angus Armstrong ◽  
E. Philip Davis
Keyword(s):  
House Prices ◽  
House Price ◽  
Macroprudential Policy ◽  
Marked Rise ◽  
Commercial Property ◽  
The Past ◽  
Housing Boom ◽  
Per Se ◽  
Compare And Contrast ◽  
Boom Period

The house price and lending boom of the 2000s is widely considered to be the main cause of the financial crisis that began in 2007. However, looking to the past, we find a similar boom in the late 1980s which did not lead directly to a global systemic banking crisis – there were widespread banking difficulties in the early 1990s but these were linked mainly to commercial property exposures. This raises the question whether the received wisdom is incorrect, and other factors than the housing boom caused the crisis, while macroprudential policy is overly targeted at the control of house prices and lending per se.Accordingly, in this paper we compare and contrast the cycles in house prices over 1985–94 with 2002–11. There are more similarities than contrasts between the booms. Stylised facts include a similar rise in real house prices where booms took place, and a marked rise in the real mortgage stock along with real incomes. The aftermath periods are also comparable in terms of house price changes. Econometrically, determinants of house prices are similar in size and sign from the 1980s to date.There remain some contrasts. Leverage rose far more in the later episode and did not contract in the aftermath. Mean reversion of house prices is greater in the earlier period. The earlier boom period showed differences with average house price behaviour which was not mirrored in the most recent boom and inflation was higher. Despite the contrasts, on balance we reject the idea that the recent boom was in some way unique and hence the key cause of the crisis. There is a need for further research to capture distinctive structural and conjunctural factors underlying the recent crisis which differ from the earlier boom and some suggestions are made.

scholarly journals Credit Conditions, Macroprudential Policy and House Prices

2017 ◽  
Author(s):  
Robert J. Kelly ◽  
Fergal McCann ◽  
Conor O'Toole
Keyword(s):  
House Prices ◽  
Macroprudential Policy

scholarly journals Credit conditions, macroprudential policy and house prices

2018 ◽  
Vol 41 ◽  
pp. 153-167 ◽  
Author(s):  
Robert Kelly ◽  
Fergal McCann ◽  
Conor O’Toole
Keyword(s):  
House Prices ◽  
Macroprudential Policy

scholarly journals Macroprudential Policies and House Prices in Europe

2020 ◽  
Vol 20 (03) ◽  
Author(s):  
Marco Arena ◽  
Tingyun Chen ◽  
Seung Choi ◽  
Nan Geng ◽  
Cheikh Gueye ◽  
...  
Keyword(s):  
Systemic Risk ◽  
Financial Services ◽  
House Prices ◽  
Financial System ◽  
Real Economy ◽  
Negative Consequences ◽  
Macroprudential Policy ◽  
The Real ◽  
Macroprudential Policies

Macroprudential policy in Europe aligns with the objective of limiting systemic risk, namely the risk of widespread disruption to the provision of financial services that is caused by an impairment of all or parts of the financial system and that can cause serious negative consequences for the real economy.

scholarly journals House prices and macroprudential policy in an estimated DSGE model of New Zealand

2018 ◽  
Vol 56 ◽  
pp. 152-171 ◽  
Author(s):  
Michael Funke ◽  
Robert Kirkby ◽  
Petar Mihaylovski
Keyword(s):  
New Zealand ◽  
House Prices ◽  
Dsge Model ◽  
Macroprudential Policy

scholarly journals Predicting Downside Risks to House Prices and Macro-Financial Stability

2020 ◽  
Vol 20 (11) ◽  
Author(s):  
Andrea Deghi ◽  
Mitsuru Katagiri ◽  
Sohaib Shahid ◽  
Nico Valckx
Keyword(s):  
At Risk ◽  
Financial Stability ◽  
House Prices ◽  
Emerging Market ◽  
House Price ◽  
Macroprudential Policy ◽  
Financial Conditions ◽  
Advanced Economies ◽  
Price Growth ◽  
Policy Solutions

This paper predicts downside risks to future real house price growth (house-prices-at-risk or HaR) in 32 advanced and emerging market economies. Through a macro-model and predictive quantile regressions, we show that current house price overvaluation, excessive credit growth, and tighter financial conditions jointly forecast higher house-prices-at-risk up to three years ahead. House-prices-at-risk help predict future growth at-risk and financial crises. We also investigate and propose policy solutions for preventing the identified risks. We find that overall, a tightening of macroprudential policy is the most effective at curbing downside risks to house prices, whereas a loosening of conventional monetary policy reduces downside risks only in advanced economies and only in the short-term.

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