In response to rising mortgage debt for households, regulation of mortgage lending conditions for households was introduced in France by the Higher Council for Financial Stability. An assessment has shown that this measure, which became binding in 1 January 2022, has reduced the average DSTI ratio while increasing the average mortgage maturity. However, the effect on property prices has been limit... Lire la suite
The holding and market of certain so-called safe assets play an essential role in financial stability. The definition of these assets is not consensual, as various qualities can contribute to the safety offered by a financial security: countercyclicality, liquidity, credit quality and stability. The study identifies a set of securities that play the role of safe assets according to these criteria... Lire la suite
China’s public finances are organised in a complex and opaque manner, and are structured into various accounts with unclear scopes, along with off-balance sheet commitments. The important role of public investment in China's growth has resulted in high debt levels for local governments. In the wake of the COVID-19 pandemic, local finances are at risk, which has made far-reaching reforms all the mo... Lire la suite