<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The subject of this paper is the contemporary trend in residential real estate markets in European countries and their impact on the quality of banks’ housing loan portfolios. Due to the fact that these are the markets that still have not fully recovered from the previous financial crisis, and at the time of writing were exposed to significant uncertainty related to the effects of specific business conditions caused by COVID-19, the research on the risks related to these markets and tools which can mitigate their consequences are of paramount importance. Given the fact that the importance of monitoring the emergence of systemic risks in the financial system and the design of macroprudential tools for Bosnia and Herzegovina is yet to come, one of the aims of the paper is to present the results of the research on the effectiveness of certain macroprudential policy measures for mitigating the impact of price fluctuations in residential real estate markets. A special attention is paid to the challenges that the real estate market and mortgage loans have been facing during the crisis caused by the COVID-19 pandemic. The paper provides a basis for future researches examining to which extent the applied macroprudential policy measures in some countries have been effective in hitherto unprecedented business conditions</p>
</abstract>

The subject of this paper is the contemporary trend in residential real estate markets in European countries and their impact on the quality of banks’ housing loan portfolios. Due to the fact that these are the markets that still have not fully recovered from the previous financial crisis, and at the time of writing were exposed to significant uncertainty related to the effects of specific business conditions caused by COVID-19, the research on the risks related to these markets and tools which can mitigate their consequences are of paramount importance. Given the fact that the importance of monitoring the emergence of systemic risks in the financial system and the design of macroprudential tools for Bosnia and Herzegovina is yet to come, one of the aims of the paper is to present the results of the research on the effectiveness of certain macroprudential policy measures for mitigating the impact of price fluctuations in residential real estate markets. A special attention is paid to the challenges that the real estate market and mortgage loans have been facing during the crisis caused by the COVID-19 pandemic. The paper provides a basis for future researches examining to which extent the applied macroprudential policy measures in some countries have been effective in hitherto unprecedented business conditions

The Role of Macroprudential Policy in Bank Housing Loans Portfolio Quality Assurance

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The subject of this paper is the contemporary trend in residential real estate markets in European countries and their impact on the quality of banks’ housing...

The Role of Macroprudential Policy in Bank Housing Loans Portfolio Quality Assurance

Published Online: Dec 14, 2021

Page range: 281 - 296

Received: Aug 31, 2020

Accepted: Jun 11, 2021

DOI: https://doi.org/10.2478/ethemes-2021-0016

Keywords
real estate market crashes, non-performing loans, macropruden tial policy

© 2021 Mirela Mitrašević, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Role of Macroprudential Policy in Bank Housing Loans Portfolio Quality Assurance

Published Online: Dec 14, 2021

Page range: 281 - 296

Received: Aug 31, 2020

Accepted: Jun 11, 2021

DOI: https://doi.org/10.2478/ethemes-2021-0016

Keywordsreal estate market crashes, non-performing loans, macropruden tial policy

© 2021 Mirela Mitrašević, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
real estate market crashes, non-performing loans, macropruden tial policy