Economics at your fingertips  

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

Andrés Alegría, Rodrigo Alfaro and Felipe Córdova

Latin American Journal of Central Banking (previously Monetaria), 2021, vol. 2, issue 4

Abstract: 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.

Keywords: Macroprudential policy; LTV ratios; Central bank communication (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
Gold Open Access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.latcb.2021.100041

Access Statistics for this article

Latin American Journal of Central Banking (previously Monetaria) is currently edited by Manuel Ramos-Francia

More articles in Latin American Journal of Central Banking (previously Monetaria) from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2024-05-11
Handle: RePEc:eee:lajcba:v:2:y:2021:i:4:s2666143821000211