The Use of Borrower-based Measures within Macroprudential Policy: Evidence from the European Economic Area

The article deals with borrower-based instruments within macroprudential policy as measures aimed at reducing systemic risk regarding household debt. Our contribution is three-fold; Firstly, we show that more than 50% of countries in the European Economic Area have incorporated into their national legal framework. Secondly, provide evidence in exceeding average level debt growth, active caps are used. Thirdly, our results confirm use one cap where house price increase was higher growth. We also highlight reaction Czech National Bank and other authorities to the COVID-19 crisis, which has resulted relaxing standards.