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STS543 Muizz A. et al.
attributed to the rising house prices that took place during the same period.
This finding lends support for a more holistic approach in addressing
indebtedness of the household sector.
We acknowledge that the methodology applied in this paper has some
limitations that could be explored for further research. These include
expanding the scope to assess (i) the impact of the policies on the different
forms (e.g. hire purchase and credit cards) and sources (e.g. banks and
nonbank financial institutions) of credit extended to households, and (ii) the
impact of other policies introduced including Basel III-related prudential
requirements on indebtedness of households.
References
1. A. Rani and Lau (forthcoming). Implementing Loan-to-Value and Debt-
to-Income Ratios: Learning from Country Experiences – Malaysia
2. Bekkum S. V., Gabarro M., Irani R. M. & Peydro (2019). Macroprudential
Policy and Household Leverage: Evidence from Administrative
Household-Level Data
3. Cerutti, E., S. Claessens and L. (2017). The Use and Effectiveness of
Macroprudential Policies: New Evidence. Journal of Financial Stability,
Vol. 39, pp. 153-185
4. Rauf (2017). Measuring the Effectiveness of Macroprudential Policies –
The Malaysian Experience
5. Tzur-Ilan N. (2018). LTV Limits and Borrower Risk. Bank of Israel
Discussion Paper
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