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Estimating the impacts of restrictions on high LVR lending

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Abstract

The Reserve Bank recently imposed a loan-to-value ratio limit governing bank lending on residential mortgages. This note outlines the analysis undertaken to estimate the likely impact of this limit on several macro-economically significant variables.

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  • Chris Bloor & Chris McDonald, 2013. "Estimating the impacts of restrictions on high LVR lending," Reserve Bank of New Zealand Analytical Notes series AN2013/05, Reserve Bank of New Zealand.
    • Handle: RePEc:nzb:nzbans:2013/05
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    File URL: http://rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Analytical%20notes/2013/an2013-05.pdf
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    1. Mr. R. S Craig & Mr. Changchun Hua, 2011. "Determinants of Property Prices in Hong Kong SAR: Implications for Policy," IMF Working Papers 2011/277, International Monetary Fund.
    2. Chris Bloor & Troy Matheson, 2010. "Analysing shock transmission in a data-rich environment: a large BVAR for New Zealand," Empirical Economics, Springer, vol. 39(2), pages 537-558, October.
    3. Kenneth Kuttner & Ilhyock Shim, 2012. "Taming the Real Estate Beast: The Effects of Monetary and Macroprudential Policies on Housing Prices and Credit," RBA Annual Conference Volume (Discontinued), in: Alexandra Heath & Frank Packer & Callan Windsor (ed.),Property Markets and Financial Stability, Reserve Bank of Australia.
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    Cited by:

    1. Mr. Seung M Choi & Ms. Laura E. Kodres & Jing Lu, 2018. "Friend or Foe? Cross-Border Linkages, Contagious Banking Crises, and “Coordinated” Macroprudential Policies," IMF Working Papers 2018/009, International Monetary Fund.
    2. Kukk, Merike & Levenko, Natalia, 2024. "Measuring the effects of borrower-based policies on new housing loans," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 666-684.
    3. Gross, Marco & Población García, Francisco Javier, 2016. "Assessing the efficacy of borrower-based macroprudential policy using an integrated micro-macro model for European households," Working Paper Series 1881, European Central Bank.
    4. John Muellbauer, 2024. "Housing and Macroprudential Policy," Economics Series Working Papers 1056, University of Oxford, Department of Economics.
    5. Chris Bloor & Bruce Lu, 2019. "Have the LVR restrictions improved the resilience of the banking system?," Reserve Bank of New Zealand Analytical Notes series AN2019/07, Reserve Bank of New Zealand.
    6. Dimitrios Laliotis & Alejandro Buesa & Miha Leber & Javier Población, 2020. "An agent-based model for the assessment of LTV caps," Quantitative Finance, Taylor & Francis Journals, vol. 20(10), pages 1721-1748, October.
    7. Gross, Marco & Población, Javier, 2017. "Assessing the efficacy of borrower-based macroprudential policy using an integrated micro-macro model for European households," Economic Modelling, Elsevier, vol. 61(C), pages 510-528.
    8. Anne-Marie Brook, 2014. "Options to Narrow New Zealand’s Saving – Investment Imbalance," Treasury Working Paper Series 14/17, New Zealand Treasury.
    9. Seung Mo Choi & Laura E. Kodres & Jing Lu, 2021. "Friend or Foe? Cross-Border Links, Contagious Banking Crises, and Joint Use of Macroprudential Policies," Journal of Financial Services Research, Springer;Western Finance Association, vol. 60(1), pages 55-79, August.
    10. Cussen, Mary & O'Brien, Martin & Onorante, Luca & O'Reilly, Gerard, 2015. "Assessing the impact of macroprudential measures," Economic Letters 03/EL/15, Central Bank of Ireland.
    11. Gael Price, 2014. "How has the LVR restriction affected the housing market: a counterfactual analysis," Reserve Bank of New Zealand Analytical Notes series AN2014/03, Reserve Bank of New Zealand.
    12. Daniel Oda & Fernando Sepúlveda, 2014. "Uncovering Our Self-Imposed Limits: Changes in Loan-to-Value and The Mortgage Market," Working Papers Central Bank of Chile 737, Central Bank of Chile.
    13. Daniel Abreu, 2021. "Curb your enthusiasm: the aggregate short-run effects of a borrower-based measure," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    14. Lamorna Rogers, 2014. "An A to Z of loan-to-value ratio (LVR) restrictions," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 77, pages 3-14, March.

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