## 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](https://www.imf.org/en/publications/cr/issues/2024/06/17/kingdom-of-the-netherlands-the-netherlands-financial-sector-assessment-program-technical-550593)

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## Bibliographic details
- Published: June 18, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400279980.002

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### Main findings
- 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, models, and tools
- 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.

### Policy observations and recommendations
- 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.

### Subject tags and keywords (as provided)
- 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

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- **1nldea2024007**
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_Source: https://www.imf.org/en/publications/cr/issues/2024/06/17/kingdom-of-the-netherlands-the-netherlands-financial-sector-assessment-program-technical-550593_