Policy researchers suggest using debt-to-income (DTI) limits and loan-to-value (LTV) ratios as effective macroprudential tools for retail loans. A study by RBI economists highlights the importance of monitoring the retail segment for stress build-up. The sustainability of retail credit flows depends on the health of households, banks, and non-bank financial corporations. Policymakers should consider using structural prudential tools like debt-service ratio and DTI limits. Additionally, credit underwriting and account aggregators can strengthen lender resilience and improve credit monitoring.
from Banking/Finance-Industry-Economic Times https://ift.tt/su9Jmva
via IFTTT
No comments:
Post a Comment