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Heterogeneous impacts of macroprudential policies: Financial advisors, regulatory caps, and mortgage risk

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  • Cesnak, Martin
  • Cupak, Andrej
  • Fessler, Pirmin
  • Klacso, Jan

Abstract

This paper examines the impact of borrower-based macroprudential policy tightening on mortgage lending in Slovakia, focusing in particular on the role of loan mediation via financial advisors in shaping loan characteristics. Using a comprehensive loan-level dataset from Slovak banks, we analyze the effects of key regulatory tools, Loan-to-Value (LTV) and Debt-to-Income (DTI) limits, on mortgage risk profiles. Our contributions include: (i) showing that restrictive borrower-based measures (BBMs) reduce the riskiest loans but push lower-risk segments towards regulatory thresholds, thus reshaping the risk profile of the mortgage loan portfolio; (ii) demonstrating that loans mediated through financial advisors tend to have higher amounts, LTVs, DTIs, and longer maturities; and (iii) identifying significant front-loading behavior following policy tightening announcement, particularly for loans mediated through advisors. These findings highlight the importance of detailed micro-level data in capturing policy effects and informing more effective macroprudential regulation.

Suggested Citation

  • Cesnak, Martin & Cupak, Andrej & Fessler, Pirmin & Klacso, Jan, 2026. "Heterogeneous impacts of macroprudential policies: Financial advisors, regulatory caps, and mortgage risk," Journal of Financial Stability, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finsta:v:84:y:2026:i:c:s157230892600046x
    DOI: 10.1016/j.jfs.2026.101544
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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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