Some developed countries have successfully used macro-prudential policies to reduce levels of risky mortgages, a study from the International Monetary Fund finds.

Marco Arena and his co-authors examine how effective various macro-prudential policies have been at controlling housing markets and house price growth.

They find that both borrower-based measures, such as loan-to-value (LTV) ratio limits, and lender-based measures, such as capital requirements, have limited the share of risky