Series: IMF Working Papers
Author(s): Erlend Nier , Radu Popa , Maral Shamloo , and Liviu Voinea
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 22 August 2019
Keywords: Interest rates on loans, Interest rates, Financial crises, Financial institutions, Macroprudential policies and financial stability, Macroprudential policy, Household credit, Romania, WP, consumer loan
We provide empirical evidence to support the calibration of a limit on household indebtedness levels, in the form of a cap on the debt-service-to-income (DSTI) ratio, in order to reduce the probability of borrower...