A Reserve Bank official has poured cold water on the notion of setting caps on loan-to-valuation ratios and other "new and untried" tools for managing the credit cycle.
Luci Ellis, head of the financial stability department at the RBA, was canvassing issues around "macroprudential" policy, a fashionable topic in banking regulation in recent years.
Ellis used the talk to explain the RBA's, and also APRA's, approach to the use of macroprudential policy in Australia.
"We see 'macroprudential' policy as being subsumed within the broader policy framework for promoting...
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