The effect of warnings published in a financial stability report on loan-to-value ratios

The effect of warnings published in a financial stability report on loan-to-value ratios

This paper shows how central bank communications can play a role in macroprudential supervision. We document how specific warnings about real estate markets, published in the Central Bank of Chile's Financial Stability Reports of 2012, affected bank lending policies. We provide empirical eviden...

Full description

Bibliographic Details
Main Authors: Andrés Alegría, Rodrigo Alfaro, Felipe Córdova
Format: Article
Language:English
Published: Elsevier 2021-12-01
Series:Latin American Journal of Central Banking
Subjects:
Macroprudential policy
LTV ratios
Central bank communication
Online Access:http://www.sciencedirect.com/science/article/pii/S2666143821000211
id doaj-68f711dc5d8e4db9ace597da5ea358c8
record_format Article
spelling doaj-68f711dc5d8e4db9ace597da5ea358c82021-09-17T04:37:55ZengElsevierLatin American Journal of Central Banking2666-14382021-12-0124100041The effect of warnings published in a financial stability report on loan-to-value ratiosAndrés Alegría0Rodrigo Alfaro1Felipe Córdova2Financial Policy Division, Central Bank of Chile, Agustinas 1180, Santiago, ChileFinancial Policy Division, Central Bank of Chile, Agustinas 1180, Santiago, Chile; Corresponding author.Financial Policy Division, Central Bank of Chile, Agustinas 1180, Santiago, ChileThis paper shows how central bank communications can play a role in macroprudential supervision. We document how specific warnings about real estate markets, published in the Central Bank of Chile's Financial Stability Reports of 2012, affected bank lending policies. We provide empirical evidence of a rebalancing in the characteristics of mortgage loans granted, which led to a reduction in the number of mortgage loans with high loan-to-value ratio.http://www.sciencedirect.com/science/article/pii/S2666143821000211Macroprudential policyLTV ratiosCentral bank communication
collection DOAJ
language English
format Article
sources DOAJ
author Andrés Alegría
Rodrigo Alfaro
Felipe Córdova
spellingShingle Andrés Alegría
Rodrigo Alfaro
Felipe Córdova
The effect of warnings published in a financial stability report on loan-to-value ratios
Latin American Journal of Central Banking
Macroprudential policy
LTV ratios
Central bank communication
author_facet Andrés Alegría
Rodrigo Alfaro
Felipe Córdova
author_sort Andrés Alegría
title The effect of warnings published in a financial stability report on loan-to-value ratios
title_short The effect of warnings published in a financial stability report on loan-to-value ratios
title_full The effect of warnings published in a financial stability report on loan-to-value ratios
title_fullStr The effect of warnings published in a financial stability report on loan-to-value ratios
title_full_unstemmed The effect of warnings published in a financial stability report on loan-to-value ratios
title_sort effect of warnings published in a financial stability report on loan-to-value ratios
publisher Elsevier
series Latin American Journal of Central Banking
issn 2666-1438
publishDate 2021-12-01
description This paper shows how central bank communications can play a role in macroprudential supervision. We document how specific warnings about real estate markets, published in the Central Bank of Chile's Financial Stability Reports of 2012, affected bank lending policies. We provide empirical evidence of a rebalancing in the characteristics of mortgage loans granted, which led to a reduction in the number of mortgage loans with high loan-to-value ratio.
topic Macroprudential policy
LTV ratios
Central bank communication
url http://www.sciencedirect.com/science/article/pii/S2666143821000211
work_keys_str_mv AT andresalegria theeffectofwarningspublishedinafinancialstabilityreportonloantovalueratios
AT rodrigoalfaro theeffectofwarningspublishedinafinancialstabilityreportonloantovalueratios
AT felipecordova theeffectofwarningspublishedinafinancialstabilityreportonloantovalueratios
AT andresalegria effectofwarningspublishedinafinancialstabilityreportonloantovalueratios
AT rodrigoalfaro effectofwarningspublishedinafinancialstabilityreportonloantovalueratios
AT felipecordova effectofwarningspublishedinafinancialstabilityreportonloantovalueratios
_version_ 1717377650316541952

Similar Items