Kingdom of the Netherlands-The Netherlands: Financial Sector Assessment Program- Technical Note on Macroprudential Policy Framework

IMF Staff Country Reports, June 18, 2024

Source details

Canonical URL: Kingdom of the Netherlands-The Netherlands: Financial Sector Assessment Program- Technical Note on Macroprudential Policy Framework

The paper presents a technical note on macroprudential policy framework in The Netherlands.
The Financial Sector Assessment Program recommendations aim to address observed gaps and further strengthen the Netherlands’ macroprudential policy framework.
Macroprudential policy in the Netherlands has centered on the residential real estate market given the importance of this market for households, banks, and insurers.
The current institutional arrangement is broadly in line with IMF guidance for effective macroprudential policy.
Surveillance and systemic risk assessment rely on comprehensive quantitative information and on various property market models and stress tests.
The willingness to act and the ability to act over the calibration of the borrower-based tools are considered weak.
The authorities recently increased the differentiation of the transfer tax to improve the position of owner-occupiers relative to that of buy-to-let investors, but the measure should be calibrated cautiously.
Supply-side measures remain critical to limit house price pressures and improve access to homeownership.

Surveillance and systemic risk assessment use comprehensive quantitative information.
Various property market models and stress tests are employed to assess vulnerabilities.
Borrower-based tools are in place but face limitations due to weak willingness to act and weak ability to act over calibration.

Strengthen the calibration and use of borrower-based tools by improving both willingness to act and operational capacity to calibrate those tools.
Calibrate the recently increased differentiation of the transfer tax cautiously to avoid unintended effects while improving owner-occupier positions relative to buy-to-let investors.
Prioritize supply-side measures to limit house price pressures and improve access to homeownership.

Subjects: Financial institutions, Financial sector policy and analysis, Financial sector stability, Housing prices, International organization, Macroprudential policy, Macroprudential policy instruments, Monetary policy, Mortgages, Prices
Keywords: Financial sector stability, Global, Housing prices, infrastructure regulation, Macroprudential policy, Macroprudential policy instruments, markets authority, mortgage interest deductibility, Mortgages, property market, statistics Netherlands