## The Effectiveness of Borrower-Based Macroprudential Measures: A Quantitative Analysis for Slovakia

_IMF Working Papers, July 17, 2020_

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## Bibliographic details
- Authors: Pavol Jurca, Ján Klacso, Eugen Tereanu, Marco Forletta, Marco Gross
- Published: July 17, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513550503.001

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### Framework and Methodology
- Developed a semi-structural quantitative framework combining micro and macroeconomic data.
- Expands on the integrated dynamic household balance sheet model of Gross and Población (2017) by introducing an endogenous loan granting feature.
- Quantifies the potential (ex-ante) impact of borrower-based macroprudential measures on resilience parameters compared with a counterfactual no-policy scenario under adverse macroeconomic conditions.

### Main Findings
- Borrower-based measures can noticeably improve household and bank resilience to macroeconomic downturns, in particular when multiple measures are applied.
- The measures tend to complement each other, as the impact of individual instruments is transmitted via different channels.
- Resilience benefits are more sizeable if the measures effectively limit the accumulation of risks before an economic downturn occurs, suggesting that an early, preemptive implementation of borrower-based measures is warranted.

### Policy Implications and Recommendations
- Consider applying combinations of borrower-based macroprudential measures rather than relying on single instruments to enhance resilience.
- Implement borrower-based measures preemptively to limit risk accumulation ahead of potential downturns.
- Use models that incorporate endogenous loan granting to better assess ex-ante effects of macroprudential policies on household and bank balance sheets.

### Publication and Metadata
- Authors: Pavol Jurca, Ján Klacso, Eugen Tereanu, Marco Forletta, Marco Gross
- Publication date: July 17, 2020
- Series: Working Paper No. 2020/134
- Issue: 134
- Volume: 2020
- Pages: 37
- DOI: https://doi.org/10.5089/9781513550503.001
- ISBN: 9781513550503
- ISSN: 1018-5941

*Source: IMF Working Paper — "The Effectiveness of Borrower-Based Macroprudential Measures: A Quantitative Analysis for Slovakia", July 17, 2020.*

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_Source: https://www.imf.org/en/publications/wp/issues/2020/07/17/the-effectiveness-of-borrower-based-macroprudential-measures-a-quantitative-analysis-for-49581_