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Author: Matteo Benetton
Publisher:
ISBN:
Category :
Languages : en
Pages : 76
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Book Description
I develop a structural model of mortgage demand and lender competition to study how leverage regulation affects the equilibrium in the UK mortgage market. Using variation in risk-weighted capital requirements across lenders and across mortgages with differential loan-to-values, I show that a one-percentage-point increase in risk-weighted capital requirements increases the interest rate by 10 percent for the average mortgage product. The estimated model implies that heterogeneous leverage regulation increases the concentration of mortgage originations, as large lenders exploit a regulatory cost advantage. Counterfactual analyses uncover potential unintended consequences of policies regulating household leverage, since banning the highest loan-to-value mortgages may reduce large lenders' equity buffers, thereby affecting risk.
Author: Matteo Benetton
Publisher:
ISBN:
Category :
Languages : en
Pages : 76
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Book Description
I develop a structural model of mortgage demand and lender competition to study how leverage regulation affects the equilibrium in the UK mortgage market. Using variation in risk-weighted capital requirements across lenders and across mortgages with differential loan-to-values, I show that a one-percentage-point increase in risk-weighted capital requirements increases the interest rate by 10 percent for the average mortgage product. The estimated model implies that heterogeneous leverage regulation increases the concentration of mortgage originations, as large lenders exploit a regulatory cost advantage. Counterfactual analyses uncover potential unintended consequences of policies regulating household leverage, since banning the highest loan-to-value mortgages may reduce large lenders' equity buffers, thereby affecting risk.
Author: Gloria J. Hurdle
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: John A. Tatom
Publisher: Springer Science & Business Media
ISBN: 1441966374
Category : Business & Economics
Languages : en
Pages : 243
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Book Description
What role should regulation play in financial markets? What have been the ramifications of financial regulation? To answer these and other questions regarding the efficacy of legislation on financial markets, this book examines the impact of the Gramm Leach Bliley Act (GLBA), also called the Financial Modernization Act of 1999, which fundamentally changed the financial landscape in the United States. The GLBA allows the formation of financial holding companies that can offer an integrated set of commercial banking, securities and insurance products. The tenth anniversary of the most sweeping financial legislation reform in the industry’s structure is a natural benchmark for assessing the effects of the law and for questioning whether changes are necessary in the working of this historic legislation. The importance of this review is reinforced by a variety of proposals in the last several years to reform the regulation of financial institutions that have attracted considerable attention among regulators and in the financial firms that they regulate. Most recently, the financial crisis and the failure of some large financial institutions have called into question the legitimacy of America’s current financial structure and its regulation, including to some degree the GLBA. There is no doubt that regulatory reform is front and center on today’s policy agenda. The lessons of the GLBA experience and its effects, both domestic and international, on financial markets and competitiveness, risk-taking and risk management by financial services firms and their regulators will be critical to the direction the country takes and the effort to ensure that future financial crises do not occur or have less costly damage. With contributions from academics, policy experts, and a sponsor of the GLBA, Congressman James Leach, this book is invaluable to anyone interested in financial system reform.
Author: Gene Amromin
Publisher: DIANE Publishing
ISBN: 1437987850
Category : Business & Economics
Languages : en
Pages : 57
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Book Description
CM became a popular borrowing instrument during the bullish housing market of the early 2000s but vanished rapidly during the subsequent downturn. These non-traditional loans (interest only, negative amortization, and teaser mortgages) enable households to postpone loan repayment compared to traditional mortgages and hence relax borrowing constraints. But, they increase household leverage and heighten dependence on mortgage refinancing. CM were chosen by prime borrowers with high income levels seeking to purchase expensive houses relative to their incomes. Borrowers with CM experience substantially higher ex post default rates than borrowers with traditional mortgages with similar characteristics. Illus. This is a print on demand report.
Author: David B. Humphrey
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Author: Sumit Agarwal
Publisher: Springer Nature
ISBN: 9811555265
Category : Business & Economics
Languages : en
Pages : 352
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Book Description
Household finance studies is a relatively recent field, exploring a growing understanding of how households make financial decisions relating to the functions of consumption, payment, risk management, borrowing and investing; how institutions provide goods and services to satisfy these financial functions of households; and how interventions by firms, governments and other parties affect the provision of financial services. This timely book analyses existing findings about household behavior as well as findings related to policy interventions. With international case studies, this book reviews a topic of global importance and brings a crucial up-to-date survey of the field for researchers and postgraduate students.
Author:
Publisher: Lulu.com
ISBN: 9291316695
Category : Bank capital
Languages : en
Pages : 294
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Book Description
Author: Mr.Manmohan Singh
Publisher: International Monetary Fund
ISBN: 148434703X
Category : Business & Economics
Languages : en
Pages : 28
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Book Description
Traditional measures of leverage in the financial system tend to reflect bank balance sheet data. The paper argues that these traditional, bank-centric measures should be augmented by considering pledged collateral in the financial system since pledged collateral provides a measure of an important part of nonbank funding to banks. From a policy perspective, the paper suggests that a broader view on leverage will enhance our understanding of global systemic risk, and complement the theoretical work in this field by providing a link from micro-level leverage data to macro aggregates such as credit to the economy.
Author: Masahiro Kawai
Publisher: Brookings Institution Press
ISBN: 0815704895
Category : Business & Economics
Languages : en
Pages : 441
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Book Description
"In the wake of the global financial crisis that began in 2008, offers a systematic overview of recent developments in regulatory frameworks in advanced and emerging-market countries, outlining challenges to improving regulation, markets, and access in developing economies"--Provided by publisher.
Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs
Publisher:
ISBN:
Category : Electronic trading of securities
Languages : en
Pages : 128
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Book Description
