Bank lending behavior and housing market booms: The Australian evidence

Li, Shuyun May; Suardi, Sandy; Wee, Benjamin

doi:10.1016/j.iref.2022.05.006

Cited by 8 publications

(3 citation statements)

References 29 publications

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“…For example, Chakraborty et al (2018) report that banks increased mortgage lending but decreased commercial lending over the period 1988-2006 in the US. The crowding-out of commercial loans toward housing loans by the big four banks, with the increase in house prices, is also found in Australia (Li et al, 2019). However, they do not find a similar crowding-out effect on consumer loans.…”

Section: Introductionmentioning

confidence: 91%

House prices and bank loan portfolios in an emerging market: The role of bank ownership

Ayberk

Önder

2022

Economic Modelling

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Section: Introductionmentioning

confidence: 91%

House prices and bank loan portfolios in an emerging market: The role of bank ownership

Ayberk

Önder

2022

Economic Modelling

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“…Bank financing also makes it possible for farmers to adopt cutting-edge farming methods and environmental practices. For instance, investments in effective irrigation systems contribute to environmental sustainability and the conservation of water resources (Li, Suardi, & Wee, 2022). Credit-backed investments help farmers upgrade their businesses, making the agriculture industry more robust to the effects of climate change and long-term sustainable.…”

Section: Impact Of Bank Lending On Agriculturementioning

confidence: 99%

Assessing the Challenges and Impact of Access to Agricultural Credit in Southern Punjab (Pakistan): A Qualitative Study

Ali,

Gillani

2023

Pak. J. Humanit. Soc. Sci

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Pakistan's agriculture industry, distinguished by its variety of animals and crops, has historically been the foundation of the country's economy. It contributes significantly to GDP, employs a considerable section of the people, and assures food security for the country. Despite its vast potential, the agricultural sector continues to struggle with issues including low productivity, susceptibility to climate change, and inadequate access to financial resources. Investigating the Credit Barriers to Bank Lending in Pakistan's Agriculture Sector was the aim of this study. The effectiveness of present lending processes, as well as the role of banks in providing credit to agricultural consumers, and the socioeconomic implications of bank credit in agriculture, were also explored. In-depth semi-structured interviews were the primary technique of data collecting for this study, which followed a qualitative research design. A total of 33 representatives from the NRSP Micro Finance Bank, Zari Tarraqiati Bank Ltd., and National Bank of Pakistan (NBP) in the Bahawalpur region, as well as some of the bank's visiting clientele, were the participants of the study. Data was extracted and analyzed using thematic analysis to reveal recurring themes and trends. According to the findings, banks in Pakistan encountered some credit challenges when offering loans to the farm industry. There were societal issues, knowledge gaps, legal constraints, and financial challenges. Stakeholder perspectives, including those of bank employees and farmers, provided a thorough picture of the problems at hand. This research contributes to the literature by offering an in-depth analysis of credit restrictions in agricultural financing in Pakistan.

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“…In 2008, the US banking system lowered the threshold for home loans to stimulate demand for housing among a significant number of people with low incomes or little financial credit, and the subprime mortgage market bubble intensified, which eventually burst, causing subprime mortgage lenders to go bankrupt and, in turn, forcing investment funds to close and the stock market to shake violently [1][2]. It fully exposed the instability of the global financial system and the fragility of financial regulation, revealing the banking system's inherent externalities and public nature [3][4]. At present, local commercial banks still lack a perfect risk management mechanism for personal housing loans, and the corresponding risk control process, management system, business staff quality, risk management methods, and so on still need to be optimized, which has a certain negative impact on the long-term development of the personal housing loan business of commercial banks and may even bring about systemic financial risks.…”

Section: Introductionmentioning

confidence: 99%

A Study on Risk Management of Commercial Banks’ Home Mortgage Loans Based on Risk Management Framework

Zhao

2023

Applied Mathematics and Nonlinear Sciences

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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.

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Bank lending behavior and housing market booms: The Australian evidence

Cited by 8 publications

References 29 publications

House prices and bank loan portfolios in an emerging market: The role of bank ownership

House prices and bank loan portfolios in an emerging market: The role of bank ownership

Assessing the Challenges and Impact of Access to Agricultural Credit in Southern Punjab (Pakistan): A Qualitative Study

A Study on Risk Management of Commercial Banks’ Home Mortgage Loans Based on Risk Management Framework

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