01960cas a2200229 a 4500 AALejournalIMF021143 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513552514 1018-5941 BD-DhAAL BD-DhAAL House Prices and Macroprudential Policies : Evidence from City-level Data in India. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (46 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 This paper examines the efficacy of macroprudential policies in addressing housing prices in a developing country while underscoring the importance of fundamental factors. The estimated models using city-level data for India suggest a strong influence of fundamental factors in driving housing prices. There is compelling evidence of the effectiveness of macroprudential tools viz., Loan-to-value (LTV) ratio, risk weights, and provisioning requirements, in influencing housing price movements. A granular analysis suggests an even stronger impact on housing prices of a change in the regulatory LTV ratio for large-sized vis-a-vis small-sized mortgages, which buttresses their potency in fighting house price speculations. A tightening of the risk weights on the housing assets of banks causes significant downward pressure on house prices. Similarly, regulatory changes in standard asset provisioning on housing loans also influence house prices. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2020/291 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/291/001.2020.issue-291-en.xml IMF e-Library