Using a confidential dataset of foreign bank affiliates (FBA) in Hong Kong, this study finds evidence of an international transmission of prudential policies through banks' balance sheets from a host country perspective. Specifically, in response to tighter capital requirements in the home...

This paper provides a non-technical summary of two recent empirical studies to shed light on key important issues regarding the implementation of loan-to-value (LTV) policy as a macroprudential tool, including its effectiveness, potential drawbacks and its transmission mechanism to improve...

This study assesses the effectiveness and drawbacks of maximum loan-to-value (LTV) ratios as a macroprudential tool based on Hong Kong's experience and econometric analyses of panel data from 13 economies. The tool is found to be effective in reducing systemic risk stemming from the...