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The Commercial Real Estate Market, Central Bank Monitoring and Macroprudential Policy

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  • KRZYSZTOF OLSZEWSKI

    (National Bank of Poland)

Abstract

This article reviews the impact of commercial real estate (CRE hereafter) on macro- financial stability and discusses some ideas on how central banks could deal with the risk that it can impose to the financial stability. First, we present the main features of the CRE market, explain its cycle and outline risks related to this market. We discuss the relationship between the CRE market and the financial system. For several countries that experienced a CRE crisis, we critically assess the reactions of their central banks. We conclude that the CRE market should be tracked by the central bank and present some ideas for the data collection and details of the analysis of the CRE market. Finally, we provide some suggestions for the macroeconomic and financial stability policies of central banks which should help to reduce risk and enhance the growth of the CRE market.

Suggested Citation

  • Krzysztof Olszewski, 2013. "The Commercial Real Estate Market, Central Bank Monitoring and Macroprudential Policy," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 5(2), pages 213-250, December.
    • Handle: RePEc:ren:journl:v:5:y:2013:i:2:p:213-250
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    Cited by:

    1. Martin Cesnak & Jan Klacso, 2021. "Assessing real estate prices in Slovakia - a structural approach," Working and Discussion Papers WP 3/2021, Research Department, National Bank of Slovakia.
    2. Krzysztof Olszewski & Hanna Augustyniak & Jacek Laszek & Robert Leszczynski & Joanna Waszczuk, 2016. "On the dynamics of the primary housing market and the forecasting of house prices," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Combining micro and macro data for financial stability analysis, volume 41, Bank for International Settlements.
    3. Augustyniak, Hanna & Łaszek, Jacek & Olszewski, Krzysztof & Waszczuk, Joanna, 2012. "Cykle na rynku nieruchomości mieszkaniowych i komercyjnych, ryzyko dla inwestora oraz potrzeba adekwatnej i ostrożnej wyceny [Cycles on the housing and commercial real estate market, risks and the ," MPRA Paper 41070, University Library of Munich, Germany.
    4. Robert Leszczynski & Krzysztof Olszewski, 2015. "Commercial property price index for Poland," Bank i Kredyt, Narodowy Bank Polski, vol. 46(6), pages 565-578.
    5. Hana Hejlova & Michal Hlavacek & Blanka Vackova, 2020. "Estimating Commercial Property Price Misalignment in the CEE Countries," Working Papers 2020/11, Czech National Bank.
    6. Patrick van Roy & Gaia Barbic & Anne Koban & Charalampos Kouratzoglou, 2017. "Use of credit registers to monitor financial stability risks: A cross-country application to sectoral risk," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Data needs and Statistics compilation for macroprudential analysis, volume 46, Bank for International Settlements.

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    More about this item

    Keywords

    commercial real estate; macro-financial stability policy; banking sector; central banks;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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