Suchergebnisse

This study will analyze the pattern of household's property loans in Malaysia based on different income groups during the pandemic. The property sector's performance also has a strong impact on the Malaysian banking industry, faced serious challenges in 2020 as consumer sentiment turned cautious. According to The Central Bank of Malaysia (BNM), Gross Domestic Product (GDP) for construction sector represented a -10.4% (Q1 2020) drop from the previous year (7.9% at Q1:2019). Hence, Malaysian government is seen trying to mobilize the real estate and banking sectors by introducing various short-term plans to encourage home purchases in addition to the lowest Overnight Policy Rate (OPR) in the country's history. However, the total increase in impaired loans (NPLs) for housing loans has increased by 27% in June 2021 compared to June 2020. The findings show that the groups of household experienced difference pattern of property loans during the pandemic. The implications are that banks are advised to set loan criteria, especially housing loans so that the quality of borrowers can be improved. This is to avoid an increase in the number of impaired housing loans (NPLs) and the number of bankruptcy cases that can have a negative impact on financial institutions and the national economy.

The lack in empirical study of housing finance in emerging economies conduct me to use Albania as a case study. In countries like Albania where the macroeconomic volatilities are high the economic growth plays an important role in loan financing. The data collected were organized and prepared for analysis taking in consideration the Demand for Housing Loans as a dependent variable and money supply (M1) and economic growth as independent variables. The aim of this study centered on how Housing Loans demand in Albania during the financial crisis has behaved. In emerging economies like Albania where providing a dwelling for the citizens is not one of the government's priority, having a housing loan is almost the only alternative of purchasing a house. The problem is that the economic uncertainty especially when the living standard living, shrinks the individuals demand for borrowing funds from banks.

This work examines the current world experience in assessing the sensitivity of household mortgage borrowing to interest rates. The data of the "bank— region—year" format are used to estimate supply and demand equations for housing loans issued by banks in the regions of the country in 2015—2018. Our estimations have revealed that the demand on the mortgage market in the regions is sensitive to the price of loans: when weighted average rate at which a bank issues mortgages in a region is lower by 1 percentage point it is associated with an increase in demand up to 20—25%, all other things being equal, that is, when taking into account the number of offices of a bank in that region, the economic situation and region's characteristics in that year. Demand for mortgages is elastic at interest rates, which means that by lowering rates on mortgage programs, banks can expect an increase in demand, due both to an increase in overall demand for loans and to an overflow of borrowers from other banks. Consequently, it was confirmed that high interest rates on mortgages hinder the development of housing lending.

PurposeThe primary objective of the paper is to demonstrate the importance of borrower‐specific characteristics as well as local situation factors in determining the demand prospect as well as the risk of credit loss on residential housing loan repayment behavior in India.Design/methodology/approachUsing 13,487 housing loan accounts (sanctioned from 1993‐2007) data from Banks and Housing Finance Cos (HFCs) in India, this paper attempts to find out the crucial factors that drive demand for housing and its correlation with borrower characteristics using a panel regression method. Next, using logistic regression, housing loan defaults and the major causative factors of the same are examined.FindingsIn analyzing the housing demand pattern, some special characteristics of the Indian residential housing market (demographic and social features) and the housing loan facility structure (loan process, loan margin, loan rate, collateral structure etc.), that have contributed to the safety and soundness of the Indian housing market have been deciphered. The empirical results suggest that borrower defaults on housing loan payments is mainly driven by change in the market value of the propertyvis‐à‐visthe loan amount and EMI to income ratio. A 10 percent decrease in the market value of the propertyvis‐à‐visthe loan amount raises the odds of default by 1.55 percent. Similarly, a 10 percent increase in EMI to income ratio raises the delinquency chance by 4.50 percent. However, one cannot ignore borrower characteristics like marital status, employment situation, regional locations, city locations, age profile and house preference which otherwise may inhibit the lender to properly assess credit risk in home loan business, as the results show that these parameters also act as default triggers.Originality/valueThis study contributes on the micro side of the housing market in India, since it uses unique and robust loan information data from banks and HFCs. The empirical results obtained in this paper are useful to regulators, policy makers, market players as well as the researchers to understand housing market demand and risk characteristics in an emerging market economy such as India.

AbstractThe subject of this paper is the contemporary trend in residential real estate markets in European countries and their impact on the quality of banks' housing loan portfolios. Due to the fact that these are the markets that still have not fully recovered from the previous financial crisis, and at the time of writing were exposed to significant uncertainty related to the effects of specific business conditions caused by COVID-19, the research on the risks related to these markets and tools which can mitigate their consequences are of paramount importance. Given the fact that the importance of monitoring the emergence of systemic risks in the financial system and the design of macroprudential tools for Bosnia and Herzegovina is yet to come, one of the aims of the paper is to present the results of the research on the effectiveness of certain macroprudential policy measures for mitigating the impact of price fluctuations in residential real estate markets. A special attention is paid to the challenges that the real estate market and mortgage loans have been facing during the crisis caused by the COVID-19 pandemic. The paper provides a basis for future researches examining to which extent the applied macroprudential policy measures in some countries have been effective in hitherto unprecedented business conditions

Purpose: The article aims to identify and evaluate the key determinants of improving mortgage lending in Russia. Increasing the participation of financial institutions in the application of escrow accounts is of paramount importance in terms of fine-tuning the process of improving mortgage lending in Russia. Design/Methodology/Approach: In order to further improve housing mortgage lending, it seems necessary: firstly, to identify new opportunities that contribute to the development of a system of interaction between credit and financial organizations and borrowers in terms of using the innovative functions of escrow accounts; secondly, to highlight the functions, during the application of which the increase in the efficiency of the escrow account mechanism will be optimal; thirdly, to formulate recommendations on the implementation of the necessary changes in the process of applying escrow accounts, taking into account the peculiarities of mortgage lending in Russia. Findings: To fully take into account the potential impact of special escrow accounts on the process of interaction between the lender and the borrower, an additional escrow account functionality was developed, aimed at improving mortgage lending. Practical Implications: The results of the study can be put into practice in order to expand the range of escrow account functions used in the process of mortgage lending in Russia. Originality/Value: The main contribution of this study is the emphasis on the need to introduce innovative approaches to increase the functionality of escrow accounts used in the process of mortgage lending in Russia. ; peer-reviewed

Management of foreign-currency household debt in Romania in the aftermath of the Global Financial Crisis in 2008 had the effect of deepening pre-2008 class disparities and treated debtor categories differently according to their income. In this article we contribute to the debate on subaltern financialisation by showing how post-crisis credit and housing policies contributed to the fact that today different debtor groups (i.e. by type of credit but also by time of lending) find themselves at opposing ends of the political spectrum based on different class alliances, with those who benefited from the crisis-management polices positioning themselves against those who were the 'losers' under these same policies.