European Housing Markets at a Turning Point – Risks, Household and Bank Vulnerabilities, and Policy Options - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook European Housing Markets at a Turning Point – Risks, Household and Bank Vulnerabilities, and Policy Options write by Ms. Laura Valderrama. This book was released on 2023-03-24. European Housing Markets at a Turning Point – Risks, Household and Bank Vulnerabilities, and Policy Options available in PDF, EPUB and Kindle. European housing markets are at a turning point as the cost-of-living crisis has eroded real incomes and the surge in interest rates has made borrowers more vulnerable to financial distress. This paper aims to (i) shed light on the risks in European housing markets, (ii) quantify household vulnerabilties, (iii) assess banking sector implications and (iv) examine policies’ effectiveness using simulations based on microdata from the Household Finance and Consumption Survey (HFCS) and EU statistics on income and living conditions (EU-SILC). Under the baseline IMF macroeconomic forecast, the share of households that could struggle to meet basic expenses could rise by 10 pps reaching a third of all households by end 2023. Under an adverse scenario, 45 percent of households could be financially stretched, representing over 40 percent of mortgage debt and 45 percent of consumer debt. The impact on the banking sector seems contained under the baseline forecast, though there are pockets of vulnerability. A 20 percent house price correction could deplete CET1 capital by 100-300 basis points. Fiscal measures, such as subsidies to the bottom income tercile, could save 7 percent of households from financial distress at an estimated cost of 0.8 percent of GDP.
Household Vulnerabilities, Financial Stability, and the Role of Policies in Portugal
Household Vulnerabilities, Financial Stability, and the Role of Policies in Portugal - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Household Vulnerabilities, Financial Stability, and the Role of Policies in Portugal write by Ms. Laura Valderrama. This book was released on 2023-07-11. Household Vulnerabilities, Financial Stability, and the Role of Policies in Portugal available in PDF, EPUB and Kindle. Since the pandemic, developments in the real estate market in Portugal suggest that housing vulnerabilities have increased. Rising living costs and interest rates are stretching household finances which could cause an increase in defaults or force households to cut back on consumption. Simulation results suggest that, under adverse conditions, almost half of all households could be financially stretched with a disproportionate effect on lower income households. In addition, one third of consumers may need to adjust spending although the estimated reduction in aggregate consumption is limited. The impact on the banking system is manageable but a sharp house price correction could have a material impact on capital buffers. Policy support aimed at tacking the cost of living crisis could help mitigate some of these risks.
Hot Property
Hot Property - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Hot Property write by Rob Nijskens. This book was released on 2019-06-14. Hot Property available in PDF, EPUB and Kindle. This open access book discusses booming housing markets in cities around the globe, and the resulting challenges for policymakers and central banks. Cities are booming everywhere, leading to a growing demand for urban housing. In many cities this demand is out-pacing supply, which causes house prices to soar and increases the pressure on rental markets. These developments are posing major challenges for policymakers, central banks and other authorities responsible for ensuring financial stability, and economic well-being in general.This volume collects views from high-level policymakers and researchers, providing essential insights into these challenges, their impact on society, the economy and financial stability, and possible policy responses. The respective chapters address issues such as the popularity of cities, the question of a credit-fueled housing bubble, the role of housing supply frictions and potential policy solutions. Given its scope, the book offers a revealing read and valuable guide for everyone involved in practical policymaking for housing markets, mortgage credit and financial stability.
Monetary Policy Pass-Through to Interest Rates: Stylized Facts from 30 European Countries
Monetary Policy Pass-Through to Interest Rates: Stylized Facts from 30 European Countries - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Monetary Policy Pass-Through to Interest Rates: Stylized Facts from 30 European Countries write by Robert C. M. Beyer. This book was released on 2024-01-12. Monetary Policy Pass-Through to Interest Rates: Stylized Facts from 30 European Countries available in PDF, EPUB and Kindle. The extent to which changes in monetary policy rates lead to changes in loan and deposit rates for households and firms, referred to as ‘pass-through’, is an important ingredient of monetary policy transmission to output and prices. Using data on seven different bank interest rates in 30 European countries, different approaches, and the full sample as well as a subsample of euro area countries, we show that a) the pass-through in the post-pandemic hiking cycle has been heterogenous across countries and types of interest rates; b) the pass-through has generally been weaker and slower, except for rates of non-financial corporation loans and time deposits in euro area countries; c) differences in pass-through over time and across countries for most deposit rates are correlated with financial sector concentration, liquidity, and loan opportunities, and d) the effects of pass-through to outstanding mortgage rates on monetary transmission on prices and output are heterogenous across countries.
Residential Property Price Developments and (Mis)alignments in Cyprus
Residential Property Price Developments and (Mis)alignments in Cyprus - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Residential Property Price Developments and (Mis)alignments in Cyprus write by Robert C. M. Beyer. This book was released on 2023-07-07. Residential Property Price Developments and (Mis)alignments in Cyprus available in PDF, EPUB and Kindle. Residential house prices in Cyprus show no signs of overvaluation in international comparison, and various indicators confirm that prices are aligned with economic fundamentals. However, still-high household debt poses a risk. Regional disparities raise some concerns about affordability, notably in Limassol, calling for supply-side measures to increase housing supply.
