01861cas a2200253 a 4500 AALejournalIMF016550 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513547404 1018-5941 BD-DhAAL BD-DhAAL Tressel, Thierry. Effectiveness and Channels of Macroprudential Instruments : Lessons from the Euro Area / Thierry Tressel, Yuanyan Zhang. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The crisis has highlighted the importance of setting up macro-prudential oversight frameworks, having effective macro-prudential instruments in place to be called upon to mitigate growing financial imbalances as needed. We develop a new approach using the euro area Bank Lending Survey to assess the effectiveness of macro-prudential policies in containing credit growth and house price appreciation in mortgage markets. We find instruments targeting the cost of bank capital most effective in slowing down mortgage credit growth, and that the impact is transmitted mainly through price margins, the same banking channel as monetary policy. Limits on loan-to-value ratios are also effective, especially when monetary policy is excessively loose. Mode of access: Internet Zhang, Yuanyan. IMF Working Papers; Working Paper ; No. 2016/004 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/004/001.2016.issue-004-en.xml IMF e-Library