Afanasieff, Tarsila S.; Carvalho, Fabiana L. C. A.; … - Central Bank of Brazil, Research Department - 2015
This paper discusses the reasons and effects of the Central Bank of Brazil’s decision to raise the risk weight factors (RWF) of auto loans with high LTV and long maturities in 2010. Concerns with origination standards and risk-underpricing, combined with early warnings of loan non-performance...