Borrower-based measures show value as macro-pru tools

Financial crisis

Borrower-based measures (BBMs) have proven their worth as a component of macro-prudential toolkits, central bankers say.

Speakers at the 2023 Central Banking Summer Meetings who had deployed BBMs said they had yielded important benefits.

One central banker from an eastern European country said his institution learned lessons from a severe banking crisis. The central bank introduced BBMs, starting in the early 2010s, including limits on loan-to-value ratios and debt service.

“These standards

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