LTV ratios need reform, ECB paper argues
Macro-prudential tools must now apply to real estate funds financed by non-bank loans – researcher
Macro-prudential authorities must reform loan-to-value (LTV) ratios to limit large-scale investment funds using loans from non-banks, a working paper published by the European Central Bank argues.
In Macroprudential policy and the role of institutional investors in housing markets, Manuel Muñoz notes that investment funds are having an increasingly significant effect on real estate markets. Muñoz says these real estate investment funds, or REIFs, are using loans to carry out large-scale buy-to
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