LTV ratios need reform, ECB paper argues


Macro-prudential authorities must reform loan-to-value (LTV) ratios to limit large-scale investment funds using loans from non-banks, a working paper published by the European Central Bank argues.

In Macroprudential policy and the role of institutional investors in housing markets, Manuel Muñoz notes that investment funds are having an increasingly significant effect on real estate markets. Muñoz says these real estate investment funds, or REIFs, are using loans to carry out large-scale buy-to

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