Template-type: ReDIF-Paper 1.0
Author-Name: Dr. Stefanie Behncke
Author-Name-First: Stefanie
Author-Name-Last: Behncke
Author-Person: pbe332	
Title: Effects of macroprudential policies on bank lending and credit risks
Abstract: I analyse the effects of two macroprudential policy measures implemented in Switzerland: the activation of the countercyclical capital buffer (CCyB) and a cap on the loan-to-value (LTV) ratios. I use a difference-in-differences method to estimate the effects of these measures on risk indicators, such as their LTV and loan-to-income (LTI) ratios and mortgage growth rates. 
I find that both the CCyB and the LTV cap led to a reduction in high LTV mortgages. The banks affected by the CCyB also reduced their mortgage growth rates. I do not find any evidence that these measures had unintended consequences on LTI risks or on non-mortgage credit growth.
Length: 47 pages
Creation-Date: 2020
Contact-Email: forschung@snb.ch
File-URL: https://www.snb.ch/en/publications/research/working-papers/2020/working_paper_2020_06
File-Format: text/html
Number: 2020-06
Classification-JEL: E5, G21, G28
Keywords: Banks, countercyclical capital buffer, financial stability, loan-to-value ratio, macroprudential policy, mortgages
Handle: RePEc:snb:snbwpa:2020-06