Chinese housing market and bank credit

Sakuragawa, Masaya; Tobe, Satoshi; Zhou, Mengyuan

doi:10.1016/j.asieco.2021.101361

Cited by 7 publications

(2 citation statements)

References 23 publications

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“…Huang, Leung and Qu (2015) reported that the loan expansion was a significant factor of propelling the increases in housing prices in China after the Great Recession. Sakuragawa, Tobe and Zhou (2021) also reported that in China, housing prices were sensitive to the credit supply from 1999 to 2015. They identified the correlation between the growth of bank credit and the subsequent rise in housing prices.…”

Section: Datamentioning

confidence: 99%

Partisanship, Regulation, and Volatility in South Korea's Housing Market

Oh,

Lee,

Heo

2023

World Affairs

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South Korea's mortgage loan policy, which represents a regulatory policy for stabilizing the housing market, has changed significantly in accordance with changes in presidency and partisanship. Which partisan government's housing policy has been most effective in stabilizing the market? To answer this question, we discuss the different partisanships of Korea's conservative and progressive parties, their policy preferences, and the previous governments’ key housing policies. Thereafter, we concretize the research methodology and examine the housing volatility witnessed since 1987, using the Markov-switching regression. The results reveal that the market was highly unstable when the progressive government actively promoted regulation in favor of “governmentalist” partisanship. Moreover, the policy was mostly effective in lowering apartment prices in Seoul, which was the regulation's primary target all along. Based on these findings, we conclude with some policy implications of the study. Given that governmentalist partisanship heightens volatility in the housing market, housing market policies should be designed to hedge the negative externalities of partisanship.

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Section: Datamentioning

confidence: 99%

Partisanship, Regulation, and Volatility in South Korea's Housing Market

Oh,

Lee,

Heo

2023

World Affairs

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“…Also, bank liquidity hoarding may not react immediately to economic decisions and events. We wipe out extreme outliers in bank-level variables by winsorizing them at the 2.5% and 97.5% levels Kupiec et al, 2017;Sakuragawa et al, 2021).…”

Section: Empirical Model Specificationmentioning

confidence: 99%

Bank Liquidity Hoarding Strategies in Uncertain Times: New Evidence from an Emerging Market with Bank-level Data

Dang

Nguyen

2021

OMEE

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The paper explores the impact of uncertainty on bank liquidity hoarding, particularly providing new insights on the nature of the impact by bank-level heterogeneity. We consider the cross-sectional dispersion of shocks to key bank variables to estimate uncertainty in the banking sector and include all banking items to construct a comprehensive measure of bank liquidity hoarding. Using a sample of Vietnamese banks during 2007–2019, we document that banks tend to increase total liquidity hoarding in response to higher uncertainty; this pattern is still valid for on- and off-balance sheet liquidity hoarding. Further analysis with bank-level heterogeneity indicates that the impact of banking uncertainty on liquidity hoarding is significantly stronger for weaker banks, i. e., banks that are smaller, more poorly capitalized, and riskier. In testing the “search for yield” hypothesis to explain the linkage between uncertainty and bank liquidity hoarding, we do not find it to be the case. Our findings remain extremely robust after multiple robustness tests.

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