Many European countries impose restrictions on banks' housing lending

Abstract

EU countries have contrary to the general view a relatively large amount of experience in using potential macroprudential tools, even if the specific purpose for their use has not been to ward off systemic risks and strengthen the stability of the financial system. Half of the countries in the EU have imposed a loan-to-value cap on housing loans, if differently defined and used for different purposes. Some countries also have experience with the use of capital adequacy requirements for banks in excess of the EU s minimum requirements.