First, it would enhance the ability of macroprudential authorities to assess systemic risks exante. For RRE, more granular data on lending standards would enable the identification of risks that may be building up in the tail of the distribution, risks that are typically hidden by average figures – for example, loans with high debt-to-income (DTI), debt-service-to-income (DSTI) or loan-to-value (LTV) ratios.
In the CRE segment, wider data coverage would provide a clearer picture of market developments and improve the assessment of potential vulnerabilities. Data on rent indices and rent yields for CRE, for example, would help indicate whether a given price level reflects realised returns, or inflated expectations of future returns.