| Description |
1 online resource (36 pages) |
| Series |
1\ Selected Issues Papers, 2958-7875 |
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Selected Issues Papers; Selected Issues Paper ; No. 2023/060
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| Summary |
Germany's macroprudential policy toolkit is well-developed, but its key missing piece is a set of instruments related to a borrower's income. In addition, existing powers to adopt LTV limits have not yet been deployed. Against this background, this paper advances the discussion of borrower-based macroprudential policy in Germany by explaining how borrower-based measures could strengthen financial stability, macroeconomic stability, and consumer protection; explaining how potential concerns about these instruments could be addressed; offering approaches to initial calibrations of instruments for further analysis; and hinting at their likely effects based on other countries' experiences. The paper also uses a microsimulation model to show that activating borrower-based measures could provide as much capital to the banking system as the capital buffer requirements that were activated in 2022 |
| Notes |
Description based on print version record |
| Form |
Electronic book
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