Koetter, Michael; Noth, Felix; Wöbbeking, Carl Fabian - Leibniz-Institut für Wirtschaftsforschung Halle - 2025
We study whether and how EU banks comply with tighter macroprudential policy (MPP). Observing contractual details for more than one million securitized loans, we document an elusive risk-shifting response by EU banks in reaction to tighter loan-to-value (LTV) restrictions between 2009 and 2022....