G28 - Government Policy and Regulation

• November 28, 2017

  Shoring Up the Foundations for a More Resilient Banking System: The Development of Basel III

  Financial System Review - November 2017 Sheryl King, Alexandra Lai, Tamara Gomes

  The authors trace the development of the Basel III standards for banking regulation. Basel III builds on two earlier frameworks, in response to weaknesses revealed during the global financial crisis. They highlight how implementation of the standards will underpin greater financial stability and provide a sound foundation for economic growth.

  Content Type(s): Publications, Financial System Review articles Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): G, G1, G2, G21, G28
• November 28, 2017

  Analysis of Household Vulnerabilities Using Loan-Level Mortgage Data

  Financial System Review - November 2017 Olga Bilyk, Alexander Ueberfeldt, Yang Xu

  This report examines detailed data on home mortgages to provide a better understanding of the vulnerabilities associated with the mortgage market. The proportion of low-ratio mortgages is growing, particularly in regions with strong house price growth. Moreover, these borrowers exhibit less flexibility to adverse shocks, since they have high debt levels relative to income and have taken mortgages with long amortization periods.

  Content Type(s): Publications, Financial System Review articles Topic(s): Credit and credit aggregates, Recent economic and financial developments, Sectoral balance sheet JEL Code(s): D, D1, D12, D14, G, G2, G21, G28