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

Andrés Alegría, Rodrigo Alfaro, Felipe Córdova

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.

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Year of publication:	2021
Authors:	Alegría, Andrés ; Alfaro, Rodrigo ; Córdova, Julio Felipe
Published in:	Latin American journal of central banking : LAJCB. - Amsterdam : Elsevier, ISSN 2666-1438, ZDB-ID 3035191-1. - Vol. 2.2021, 4, Art.-No. 100041, p. 1-11
Subject:	Macroprudential policy \| LTV ratios \| Central bank communication \| Finanzmarktaufsicht \| Financial supervision \| Geldpolitik \| Monetary policy \| Zentralbank \| Central bank \| Politische Kommunikation \| Political communication \| Wirkungsanalyse \| Impact assessment \| Finanzsektor \| Financial sector

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.1016/j.latcb.2021.100041 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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