Buildings' Energy Efficiency and the Probability of Mortgage Default: The Dutch Case

Billio, Monica; Costola, Michele; Pelizzon, Loriana; Riedel, Max

doi:10.2139/ssrn.3469995

Cited by 2 publications

(2 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The research recognizes a gap in the current literature, where most studies in the banking sector focus on credit risk assessment (Rozo et al, 2023), time to default (Billio et al, 2019), and factors leading to bankruptcy (Grynko et al, 2017;Caselli et al, 2021). This study addresses the lack of research on customer retention, emphasizing the importance of not just recovering funds but encouraging customers to continue using banking services even after their loans are repaid.…”

Section: Discussionmentioning

confidence: 96%

“…The authors used an Accelerated Failure Time Model. Billio et al (2019) investigate the relationship between building energy efficiency and the probability of mortgage default in the Netherlands using a panel dataset with information on mortgage loans and building energy efficiency ratings. Using logit regression and an extended Cox model, the authors found that building energy efficiency is associated with a lower probability of mortgage default.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Modelling the Bank Customer Activity Duration Based on the Cox Econometric Survival Model

Piskunova Olena,

Klochko,

Bilyk

et al. 2023

ФКДПТП

View full text Add to dashboard Cite

The banking sector is constantly evolving, seeking effective ways to attract and retain clients, especially those with high financial potential. One of the ways to achieve this goal is to provide car loans at low interest rates, such as 0.01%. However, the untimely outflow of clients after repayment of the car loan becomes a significant problem for banks leading to the loss of potential income from other banking services. The research aims to evaluate the impact of selling additional banking services on increasing clients' activity duration. The research used statistics on opening new bank clients, whose first product was a car loan at an interest rate of 0.01%, from 2018 to 2022. The dataset included 9,224 records. The Cox proportional hazards model is used to determine the impact of a credit card on the duration of car loan client activity. The analysis of the model coefficients showed that with a credit card, clients closed at a rate of 0.86 of the rate of closing clients without a credit card. However, during the verification of the proportional hazard assumption, it was determined that the credit card's influence level changes significantly over time, indicating the model's inadequacy. The next phase of the study was the search for an influencing parameter that meets all the quality conditions of the Cox model. Having a credit card with at least one transaction was selected. For this model variation, all indicators of model adequacy were met. The coefficient estimation results showed that clients with an active credit card closed at a rate of 0.36 of the rate of closing clients without it. The evaluation of the active credit card impact confirms that selling a credit card allows for an increase in the bank clients' activity duration. However, a critical success factor is the sale of a credit card and its activation. The obtained research results can be used to optimize the bank's marketing and sales strategies, ensure more effective customer retention and increase the bank's profits.

show abstract

Section: Discussionmentioning

confidence: 96%

Section: Literature Reviewmentioning

confidence: 99%

Modelling the Bank Customer Activity Duration Based on the Cox Econometric Survival Model

Piskunova Olena,

Klochko,

Bilyk

et al. 2023

ФКДПТП

View full text Add to dashboard Cite

show abstract

Extending ‘environment-risk weighted assets’: EU taxonomy and banking supervision

Esposito

Mastromatteo

Molocchi

2020

Journal of Sustainable Finance & Investment

View full text Add to dashboard Cite

The Joint Research Centre (JRC) of the European Commission and the European Banking Authority (EBA) organized a workshop on November 18-19 at the JRC in Ispra (Italy) on "Banking Regulation and Sustainability". The joint JRC-EBA Workshop moved forward on the various challenges related to integrating sustainability into the EU banking regulation framework. It brought together academics, supervisors, policymakers and industry representatives, promoting a structured dialogue on how banks could measure and manage risks related to the environmental, social and governance dimensions. This report summarizes their contributions.

show abstract

Buildings' Energy Efficiency and the Probability of Mortgage Default: The Dutch Case

Cited by 2 publications

References 8 publications

Modelling the Bank Customer Activity Duration Based on the Cox Econometric Survival Model

Modelling the Bank Customer Activity Duration Based on the Cox Econometric Survival Model

Extending ‘environment-risk weighted assets’: EU taxonomy and banking supervision

Contact Info

Product

Resources

About