Quantifying the Effects of Loan-to-Value Restrictions: Evidence from Turkey

Yavuz Arslan, Gazi Kabaş and Ahmet Ali Taskin

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: We examine the effect of loan-to-value restriction on automobile loans using primary market car sales in Turkey. We identify the effect of the policy using the specific nature of the regulation that imposes higher downpayment restriction for automobile loans with higher prices. We observe that the drop in automobile sales growth is higher for more expensive cars net of other controlled factors.

Keywords: Macroprudential policy; Loan-to-value policy; Automobile loans; Car sales (search for similar items in EconPapers)
JEL-codes: E44 G21 G28 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-mac and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1535

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