The impact of sectoral macroprudential capital requirements on mortgage lending: evidence from the Belgian risk weight add-on

Stijn Ferrari, Mara Pirovano and Pablo Rovira Kaltwasser

MPRA Paper from University Library of Munich, Germany

Abstract: In December 2013 the National Bank of Belgium introduced a sectoral capital requirement aimed at strengthening the resilience of Belgian banks against adverse developments in the real estate market. This paper assesses the impact of this macroprudential measure on mortgage lending. Our results indicate that the sectoral capital requirement on average did not affect IRB banks’ mortgage rates and mortgage loan growth. However, the findings do indicate that IRB banks may have reacted heterogeneously to the introduction of the measure: capital-constrained banks with more exposures to the segment targeted by the additional requirement tended to respond stronger in terms of mortgage lending.

Keywords: Systemic risk; macroprudential policy; bank capital requirements; real estate. (search for similar items in EconPapers)
JEL-codes: E44 E58 G21 G28 (search for similar items in EconPapers)
Date: 2017-08
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac, nep-rmg and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:80821

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