Assessing macro-financial risks of household debt in China
by Fei Han, Emilia Jurzyk, Wei Guo, Yun He, and Nadia Rendak
High household indebtedness could constrain future consumption growth and increase financial stability risks. This paper uses household survey data to analyze both macroeconomic and finanical stability risks from the rapidly rising household debt in China. We find that rising household indebtedness could boost consumption in the short term, while reducing it in the medium-to-long term. By stress testing households' debt repayment capacity, we find that low-income households are most vulnerable to adverse income shocks which could lead to signficant defaults. Containing these risks would call for a strengthening of systemic risk assessment and macroprudential policies of the household sector. Other policies include improving the credit registry system and establishing a well-functioning personal insolvency framework
Year of publication: |
2019
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Authors: | Han, Fei ; Jurzyk, Emilia ; Guo, Wei ; He, Yun ; Rendak, Nadia |
Publisher: |
[Washington, DC] : International Monetary Fund |
Subject: | Household indebtedness | macro-financial risks | houshold survey | Privater Haushalt | Household | Private Verschuldung | Private debt | China | Liquiditätsbeschränkung | Liquidity constraint | Risiko | Risk |
Saved in:
freely available
Extent: | 1 Online-Ressource (circa 26 Seiten) Illustrationen |
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Series: | IMF working papers. - Washington, DC : IMF, ZDB-ID 2108494-4. - Vol. WP/19, 258 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper |
Language: | English |
ISBN: | 978-1-5135-1607-3 |
Other identifiers: | 10.5089/9781513516073.001 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012154904
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