Instruments to prevent risk of indebtedness becoming more common in Europe
Asplund, Tuulia (13.05.2022)
JulkaisusarjaBank of Finland. Bulletin
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-202205271247
Macroprudential instruments and their combinations affecting the demand-side of credit, i.e. borrower-based measures, aim at containing household indebtedness and preventing the build-up of risks on the housing market. Even though the maximum loan-to-value (LTV) ratio (loan cap) is still the most widely used instrument in Europe, income-related macroprudential tools are also rapidly becoming more common. The ongoing review of the EU macroprudential regulatory framework provides an opportunity to improve and harmonise the use of borrower-based macroprudential instruments in Europe.
The accessible version https://www.bofbulletin.fi/en/2022/1/instruments-to-prevent-risk-of-indebtedness-becoming-more-common-in-europe/