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Household credit in Asia-Pacific

In: Financial systems and the real economy

Author

Listed:
  • Moritz Schularick

    (University of Bonn, and Centre for Economic Policy Research)

  • Ilhyock Shim

    (Bank for International Settlements)

Abstract

Household credit in Asia-Pacific has grown strongly over the past two decades. Managing household credit booms and their financial stability implications has become a central task for policymakers. In this article, we assess the effects of changes in interest rates and macroprudential measures on various types of credit growth. We find that changes in monetary conditions reduce growth in household and housing credit over a two-year horizon. Macroprudential measures also significantly slow the growth of various credit aggregates. More precisely, we find that general bank credit tightening actions, such as increases in reserve requirements, reduce credit growth over one to four years, while housing credit tightening actions such as higher loan-to-value ratios are effective only on housing credit over one to two years.

Suggested Citation

  • Moritz Schularick & Ilhyock Shim, 2017. "Household credit in Asia-Pacific," BIS Papers chapters, in: Bank for International Settlements (ed.), Financial systems and the real economy, volume 91, pages 129-144, Bank for International Settlements.
    • Handle: RePEc:bis:bisbpc:91-12
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    File URL: http://www.bis.org/publ/bppdf/bispap91i_rh.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marco Jacopo Lombardi & Madhusudan Mohanty & Ilhyock Shim, 2017. "The real effects of household debt in the short and long run," BIS Working Papers 607, Bank for International Settlements.
    2. Sommarat Chantarat & Atchana Lamsam & Krislert Samphantharak & Bhumjai Tangsawasdirat, 2020. "Household Debt and Delinquency over the Life Cycle," Asian Development Review, MIT Press, vol. 37(1), pages 61-92, March.
    3. Woon Gyu Choi & Mr. David Cook, 2018. "Policy Conflicts and Inflation Targeting: The Role of Credit Markets," IMF Working Papers 2018/072, International Monetary Fund.
    4. Daniel Carvalho & Etienne Lepers & Rogelio Mercado, 2025. "Taming the “Capital Flows-Credit Nexus”: A Sectoral Approach," Open Economies Review, Springer, vol. 36(2), pages 373-429, April.

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    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • 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

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