Housing, Credit and Macroprudential Supervision

Sanvi Avouyi-Dovi Banque de France. Contact : sanvi.avouyi-dovi@banque-france.fr.
Claire Labonne Autorité de contrôle prudentiel et de résolution (ACPR). Contact : claire.labonne@acpr.banque-france.fr.
Rémy Lecat Banque de France. Contact : remy.lecat@banque-france.fr.

Advanced countries now benefit from a macroprudential institutional framework. This article presents available monitoring tools for the analysis of the housing market as well as the housing loans market, clearly intertwined. Key indicators are regularly controlled but can be late due to inertia inherent to the housing markets. Complementary capitalization methods are also late indicators since ignoring the short-term supply reaction. Early warning systems are agnostic, but may ignore unexpected adjustment of the fundamentals. Modeling behaviors is theoretically more satisfactory but challenging from an operational perspective. We finally propose a simplified model of the housing and housing loans market for France.

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