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The introduction and calibration of macroprudential tools targeted at residential real estate exposures in the Czech Republic

In: CNB Financial Stability Report 2017/2018

Author

Listed:
  • Hana Hejlova
  • Libor Holub
  • Miroslav Plasil

Abstract

This article sets out to describe how the CNB makes decisions on the introduction and calibration of macroprudential tools targeted at risks associated with exposures secured by residential property. It answers the following questions: How does the CNB assess the risks associated with exposures secured by residential property? Which macroprudential tools can and should be used to target such exposures, and when? What sorts of risks are DTI and DSTI caps targeted at? How does the CNB determine risky LTV, DTI and DSTI levels? In what situations is it desirable to combine macroprudential tools?

Suggested Citation

  • Hana Hejlova & Libor Holub & Miroslav Plasil, 2018. "The introduction and calibration of macroprudential tools targeted at residential real estate exposures in the Czech Republic," Occasional Publications - Chapters in Edited Volumes, in: CNB Financial Stability Report 2017/2018, chapter 0, pages 126-135, Czech National Bank.
    • Handle: RePEc:cnb:ocpubc:fsr1718/1
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    File URL: https://www.cnb.cz/export/sites/cnb/en/financial-stability/.galleries/fs_reports/fsr_2017-2018/fsr_2017-2018_article_i.pdf
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    File URL: https://www.cnb.cz/en/financial-stability/thematic-articles-on-financial-stability/
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    References listed on IDEAS

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    1. Eric Wong & Tom Fong & Ka-fai Li & Henry Choi, 2011. "Loan-to-Value Ratio as a Macro-Prudential Tool - Hong Kong's Experience and Cross-Country Evidence," Working Papers 1101, Hong Kong Monetary Authority.
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    Cited by:

    1. Miroslav Plasil & Michal Andrle, 2019. "Assessing house price sustainability," Occasional Publications - Chapters in Edited Volumes,, Czech National Bank.
    2. Petr Polak & Lubos Komarek, 2020. "Mortgage loan regulation instruments around the world," Occasional Publications - Chapters in Edited Volumes, in: CNB Global Economic Outlook - July 2020, pages 13-19, Czech National Bank.
    3. Lo Duca, Marco & Hallissey, Niamh & Jurca, Pavol & Kouratzoglou, Charalampos & Lima, Diana & Pirovano, Mara & Prapiestis, Algirdas & Saldías, Martín & Tereanu, Eugen & Bartal, Mehdi & Giedraitė, Edita, 2023. "The more the merrier? Macroprudential instrument interactions and effective policy implementation," Occasional Paper Series 310, European Central Bank.
    4. Michal Andrle & Miroslav Plašil, 2019. "Assessing House Prices with Prudential and Valuation Measures," IMF Working Papers 2019/059, International Monetary Fund.
    5. Jiri Gregor & Hana Hejlova, 2020. "The household stress test," Occasional Publications - Chapters in Edited Volumes,, Czech National Bank.

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