For example, when Ireland introduced LTV and LTI limits in February 2015, banks appear to have increased their risk-taking in lending to companies and holdings of securities, two asset classes not targeted by the measure.13 In Spain, following a similar measure, appraisers appeared to have started to overvalue property in order to lower LTV figures on loan applications.14 Completing the legal toolkit The current legal framework harmonises capital-based macroprudential measures.
The above indicates that production, income, and expenditure show negative interactions with one another. In these circumstances, the economic stimulus package was decided, and the fiscal 1998 supplementary budget bill was submitted to the Diet. These measures are expected to boost demand through additional fiscal expenditure and special income tax-reduction and thereby alleviate the downward pressures on the economy.