We investigate whether banks actively manage their exposure to interest rate risk in the short run. Using bank-level data of German banks for the period 2011Q4–2017Q2, we find evidence that banks ...actively manage their interest rate risk exposure in their banking books. Specifically, they adjust their exposure to the earning opportunities presented by this risk, take account of their regulatory situation, and manage this exposure using interest swaps. We also find that the fixed-interest period of housing loans has an impact on the banks' overall exposure to interest rate risk. This last finding, in combination with the empirical evidence that customer preferences predominantly determine the fixed-interest period of these loans, is not in line with active interest rate risk management.
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FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
There is limited evidence on the association between housing debt and depressive symptoms in China. This study aimed to examine the impact of housing debt on depressive symptoms and explore the ...heterogeneous impacts arising from two sources of housing debt and two types of housing demands.
Using data from the 2016 and 2018 China Family Panel Studies (CFPS), this study included 25,232 Chinese individuals. Depressive symptoms were assessed using the eight-item Center for Epidemiological Studies Depression Scale (CES-D8). Housing debt was measured by dummy variables, indicating whether an individual had housing debt, and continuous variables, which were the logarithm of the total amount of housing debt. The two-way fixed effects model was used to examine the relationship.
Housing debt had a significant positive impact on depressive symptoms in China. Individuals with housing debt had a 0.176-point higher depressive symptom score than those without housing debt. A 10% increase in the total amount of housing debt led to a 0.16-point increase in depressive symptoms. Non-bank housing loans significantly increased the level of depressive symptoms with a larger coefficient (coef = 0.289), while the impact of bank housing loans was small and not statistically significant. In terms of the types of housing demands, a positive impact was observed only among individuals who had only one property meeting their housing consumption demands.
This study found a significant positive impact of housing debt on depressive symptoms, primarily driven by non-bank housing loans. Furthermore, housing debt increased the depressive symptoms among individuals with consumption demands, while those with investment demands did not show a significant impact. Government interventions should prioritize easing formal financial constraints and providing support for individuals with housing consumption demands.
The occurrence of negative phenomena over the past two years: the Covid-19 pandemic, the temporary disruption of supply chains, the war in Ukraine and the energy crisis has affected many aspects of ...the global economy, including the rise in inflation and interest rates. All borrowers, including more than two million households in Poland repaying home loans, have been affected by these changes - most notably visible in the dynamic increase in lending rates. In order to help borrowers repay the instalments of such loans granted in zloty, the Legislator introduced legislation in July 2022 allowing for the use of „credit holidays”. The purpose of this article is to present the results of a study carried out on the basis of sample home loans - the impact of the introduction of „credit holidays” on the level of loan principal and instalments, assuming that all the money saved from the suspension of instalments is used to overpay the loan.
Purpose
This study aims to analyze the relationship between the consequences of the pandemic and the housing sector with econometric tests that allow for structural breaks.
...Design/methodology/approach
Study data were collected weekly between March 9, 2020, and February 4, 2022, and analyzed for Turkey. In the model of the study, housing loans were used as a housing market indicator, and the number of new deaths and new cases were used as data related to the pandemic. The exchange rate, which affects the use of housing loans, was added to the model as a control variable. This study was analyzed to examine the relationship between the pandemic and the housing sector, time series analysis techniques that allow structural breaks were used.
Findings
Based on the result of the analyses, it was concluded that there is a long-run relationship between the pandemic stages and housing markets along with structural breaks. As a result of the time-varying causality test developed to determine the causality relationship between the variables and its direction, a bidirectional causality relationship was identified between all variables at certain dates.
Research limitations/implications
Study data were collected weekly between March 9, 2020, and February 4, 2022, and analyzed in the case of Turkey.
Practical implications
Based on results of the study, it is recommended that policy makers and market actors take into account extraordinary situations such as pandemics and create a budget allocation that is always ready to use for this purpose.
Originality/value
The empirical examination of the relationship between the pandemic and the housing sector in Turkey provides originality to this study in terms of its topic, sample, methodology, contribution to the literature and potential policy recommendations.
The paper evaluates the outcomes of the borrower-based macroprudential policy measures that were introduced in Estonia in 2015. The core of the analysis is the response of the credit market in ...2016–2021 to the upper limit on the debt service-to-income ratio for new housing loans. The paper employs a novel data-driven approach based on the distribution of loan-level data, which does not need to account for the changes in the macroeconomic environment, and which allows the analysis to be made under assumptions that are more flexible than those usually used in the literature. The average number of borrowers affected, meaning those who were rejected or got a smaller loan than they wanted, is estimated to be on average around 11 per cent of the total number of new loans, which translates into roughly 10 per cent of the volume of new loans. The effect is fairly stable over the whole period despite the volume of housing loans growing in recent years.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The article dwells upon one of the most essential needs and benefits of the population – providing their own housing. Most young people are unable to solve housing problems on their own, so ...government support is significant to them. The issue of creating appropriate conditions that will increase the level of housing for the population is still relevant today. Theoretical and practical results of the study were obtained using the following methods: synthesis, analysis of evaluation methods, logical generalization. The works of many domestic scientists are devoted to the research of the problems of the state housing policy, among which: V.O. Omelchuk, V.B. Averyanov, M.F. Holovaty, P.I. Shestopalov, E.A. Sokolovskiy, E.O. Bublyk and others. The article analyzes the state and identifies the main features of the implementation of state programs of youth housing loans. Insufficient state funding for these programs, the constant growth of the number of citizens who need the state to ensure appropriate social living standards. All this encourages the search for new ways to improve the availability of real estate financing systems. One of them may be affordable mortgage loans. This will allow to effectively develop, in addition to housing programs for youth soft loans, a socially oriented mortgage market. Proposals have been made for the provision of affordable mortgage loans, depending on the level of solvency of the population, which will solve critical social problems of both young people and other categories of citizens. The opportunity to get their own housing in the future will increase the level of protection of vulnerable social groups, which in turn will encourage people to live and work in Ukraine.
In the wave of global urbanization, the rapid development of the real estate industry has greatly driven the growth of personal housing loans of commercial banks, and personal housing loans have ...become a very important part of the loan business of commercial banks, especially in the business operations of many smaller urban commercial banks, where personal housing loan business is an important source of profit. However, the personal housing loan business is facing increasing risk management challenges against the multiple backgrounds of the current epidemic environment, the overall tightening of mortgage policies, and the accelerated advancement of market-based interest rates. For most urban commercial banks, personal housing loan risk control should be based on the local market, combined with the actual development of the enterprise itself, comprehensive internal and external environmental conditions to establish a perfect risk control mechanism and timely improvement of the existing management problems is a top priority. This paper takes Bank H as an example to study the risk management of personal housing loans, exploring the basic performance of Bank H in terms of personal housing loan risks, analyzing the factors affecting its housing loan risks, and the current problems in the management of personal housing loan risks. A linear regression model is also constructed to analyze the causes of Bank H’s housing loan risk, the factors affecting personal housing loan risk, and the characteristics of Bank H’s housing loan risk. The experimental results of this paper show that through risk control management of the 10 indicators selected, Bank H’s annual housing non-performing loan ratio declined by 19.392% and was effectively curbed. It is inferred that effective financial risk management decisions can be an important tool for risk management in averting the risks associated with commercial bank housing loans. Therefore, a sound post-loan risk management mechanism for personal housing loans is essential and the only way to improve the resilience of commercial banks.
This paper presents a complex, modular, 1:1 scale model of the Hungarian residential housing market. All of the 4 million households with their relevant characteristics and all of the flats with ...detailed attributes like size, state and neighbourhood quality are represented, based on empirical micro-level data. The model features transactions in the housing and rental markets, a construction sector, buy-to-let investors, credit markets, house price dynamics, a procyclical banking sector regulated by a macroprudential authority and exogenous macroeconomic environment. While these features increase the complexity considerably, they also make it possible to surpass existing tools, most importantly in two aspects. First, the granularity of the model enables much higher resolution and heterogeneity in the results, and second, the detailed mapping to empirical data makes it possible to run the simulations in prompt time with only minimal burn-in effects. Thus, the model enables the study of the impact of selected macroprudential, fiscal and monetary policies on the housing market in a more detailed and plausible way than in the case of the traditional analytical tools. After calibrating the model on Hungarian data, it managed to reproduce the key characteristics of the housing market even at disaggregated levels based on regions and the income deciles of the households. To demonstrate the model's practicality, we also present two applications, assessing the impact of construction cost shocks and family support measures on the housing market.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
В последние годы рост концентрации и монополизации в банковском секторе России, связанный с доминированием крупнейших банков, был в основе дискуссии об уровне конкуренции в отрасли. Усиление ...конкуренции и снижение концентрации в финансовом секторе, в том числе на региональном уровне, являлось декларируемой задачей Банка России, решение которой связывается с распространением новых финансовых технологий, цифровизацией банковских услуг и технологиями дистанционного доступа. Целью исследования является оценка динамики концентрации на региональных рынках кредитования населения в период с 2015 г. по 2021 г. и ответ на вопрос, как новые финансовые технологии и цифровизация усиливают конкуренцию в банковском секторе на уровне регионов. Рассчитаны индексы концентрации и количество присутствующих банков на рынках кредитования населения в регионах РФ, а также на этом рынке в стране в целом. Расчеты проведены на основе данных с сайта Банка России, как для рынка кредитования физических лиц, так и отдельно для рынка жилищного кредитования. Они показали, что в эти годы не наблюдалось снижения показателей концентрации. В то же время снижение среднего по регионам числа банков, выдающих кредиты населению, менее значительно, чем снижение общего числа банков, вследствие прихода части банков на рынки тех регионов, где они не работали ранее. Это значит, что расширение оставшимися банками своей деятельности на большее число регионов, в том числе с помощью цифровизации и развития дистанционных методов, потенциально способно усилить конкуренцию в отрасли. Однако пока только небольшой объем кредитов и вкладов населения в регионах обеспечивается банками, не имеющими подразделений в данном регионе. Поэтому пока мало оснований говорить о том, что новые финансовые технологии усиливают конкуренцию в банковском секторе регионов страны.
This article presents a historical trajectory of Polish Swiss franc debtors, a group consisting of around 700,000 households commonly known as frankowicze, and provides a critical discourse analysis ...of social debates around their debt crisis. Initially convinced by banks that the franc was a stable currency, debtors saw their outstanding debt and monthly repayments soar after the czarny czwartek (Black Thursday) event in 2015 when the Swiss National Bank unpegged the franc from the euro. Social movements appeared and brought the issue from the private to the public sphere, but no political intervention followed. As a result, a frankowe tsunami of lawsuits is flooding the Polish judiciary with the help of specialized for-profit law firms. As most debtors belong to the middle class and are typically imagined to reside in gated communities or newer suburban developments, they have historically been unlikely candidates for sympathy in media and public discourse. The attempts of contestation, including a pivotal 2019 European Court of Justice verdict, have contributed to a reframing of debtors from failed neoliberal subjects to a group of European consumers whose rights have been infringed by banks.
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