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Pavol Jurca, Ján Klacso, Eugen Tereanu, Marco Forletta, and Mr. Marco Gross

borrower leverage and in strengthening banks’ resilience to house price shocks. In an application to Romania, Nier et al. (2019 ) use a micro (credit register)-based econometric model to estimate the effect of DSTI policies on PDs. The relationship between DSTIs and the probability of default is found to be non-linear, and consumer loan defaults happen at lower DSTI thresholds compared to mortgages. III. Data and Model Methodology Our methodological framework is built upon microdata from the third wave of the Household Finance and Consumption Survey (HFCS) 9

Pavol Jurca, Ján Klacso, Eugen Tereanu, Marco Forletta, and Mr. Marco Gross
We develop a semi-structural quantitative framework that combines micro and macroeconomic data to assess the effectiveness of combinations of borrower-based macroprudential measures in Slovakia. We expand on the integrated dynamic household balance sheet model of Gross and Población (2017) by introducing an endogenous loan granting feature, in turn to quantify the potential (ex-ante) impact of macroprudential measures on resilience parameters, compared with a counterfactual no-policy scenario, under adverse macroeconomic conditions. We conclude that (1) borrower-based measures can noticeably improve household and bank resilience to macroeconomic downturns, in particular when multiple measures are applied; (2) those measures tend to complement each other, as the impact of individual instruments is transmitted via different channels; and (3) the resilience benefits are more sizeable if the measures effectively limit the accumulation of risks before an economic downturn occurs, suggesting that an early, preemptive implementation of borrower-based measures is indeed warranted.
Bahar Öztürk and Mr. Mico Mrkaic
The monetary transmission mechanism in the euro area has been adversely affected by the recent crises. Using survey data on thousands of euro area firms, we study factors that affect the access to finance of SMEs. We find that changes in bank funding costs and borrower leverage matter for firms’ access to finance. Increases in bank funding costs and borrowers’ debt-to-asset ratios are significantly and negatively associated with firms’ access to finance. The use of subsidies significantly improve access to finance of SMEs. Finally, access to finance is found to be positively related to firm size and firm age.
Bahar Öztürk and Mr. Mico Mrkaic

The monetary transmission mechanism in the euro area has been adversely affected by the recent crises. Using survey data on thousands of euro area firms, we study factors that affect the access to finance of SMEs. We find that changes in bank funding costs and borrower leverage matter for firms’ access to finance. Increases in bank funding costs and borrowers’ debt-to-asset ratios are significantly and negatively associated with firms’ access to finance. The use of subsidies significantly improve access to finance of SMEs. Finally, access to finance is found to be positively related to firm size and firm age.

country and year. Cerutti et al. (2015) classify these as lender-based or borrower-based. Lender-based policies are those aimed at financial institutions’ assets or liabilities and include, for example, loan-loss provisioning practices, leverage, and capital buffers. Borrower-based measures are those aimed at borrowersleverage and financial positions, and cover LTV and LTI caps. Limits on foreign currency and domestic currency loans and reserve requirements have been most common in EMEs, whereas leverage ratios and limits on interbank exposures are most