Limits on loan-to-value (LTV) and debt-service-to-income (DTI) ratios have proven effective in curbing credit growth in a host of countries, but have had less of an impact on house price growth, according to research published by the IMF on July 15.
Luis Jácome and Srobona Mitra study how six countries have tackled sector-specific credit booms – Brazil, Hong Kong, Malaysia, Poland, Romania and South Korea – in the working paper LTV and DTI Limits – Going Granular.
Evaluating the effectiveness of
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