Europe and Central Asia Housing Finance Crisis Prevention and Resolution : A Review of Policy Options

The objective of this paper, besides offering insight in the regional and global development and stability issues, is to initiate a dialog with housing finance market stakeholders on the course of action appropriate for their jurisdictions. The policy options presented in the paper are practical and implementable and should frame discussions between public and private housing finance market participants. It offers observations of the recent Europe and Central Asia (ECA) market developments and presents a menu of policy actions that should be considered by the mortgage regulators to address the current challenges and to better prepare for next cyclical events. The scope of the paper is on the mortgage finance in ECA region. Some of the policy measures discussed deal with the real estate market evolution- notably the market observatories- as the real estate market evolutions are intricately linked with the cyclicality of the mortgage credit (and with the broad business cycles) and this linkage should be analyzed and considered by the mortgage market stakeholders. The policy options discussed in this paper are: (a) interconnected; and (b) need to be tailored to the specific country circumstances. The paper is structured as follows: after an overview of ECA mortgage market characteristics, key elements of the post-2008 performance are discussed in details- Non-Performing Loan (NPL) and funding mechanisms evolution. A number of policy options that can be utilized in a crisis management and counter-cyclical context are suggested.

Bibliographic Details

Main Author:	World Bank
Format:	Other Financial Sector Study biblioteca
Language:	English en_US
Published:	Washington, DC 2013-03
Subjects:	ACCOUNTING, AGENCY PROBLEM, AMORTIZATION, ARREARS, ASSET CLASS, ASSET MANAGEMENT, ASSET MANAGERS, ASSET PORTFOLIO, ASSET PRICE, ASSET PRICES, ASSET QUALITY, AVAILABILITY OF CREDIT, BACKED SECURITIES, BAILOUT, BALANCE SHEET, BALANCE SHEETS, BANK BONDS, BANK LENDERS, BANK POLICY, BANKING SECTOR, BANKING SYSTEM, BOND, BOND PAYMENT, BONDS, BORROWER, BORROWER BEHAVIOR, BROKERS, BULLET REPAYMENTS, BUSINESS CYCLE, BUSINESS CYCLES, CAPITAL ADEQUACY, CAPITAL ALLOCATION, CAPITAL BASE, CAPITAL CONSTRAINTS, CAPITAL FLOWS, CAPITAL GAINS, CAPITAL INFLOWS, CAPITAL MARKET, CAPITAL MARKETS, CAPITAL REQUIREMENTS, CASH FLOW, CASH FLOWS, CENTRAL BANK, CENTRAL BANKS, COLLATERAL, COMMERCIAL BANKS, CONFLICT OF INTEREST, CONSUMER CREDIT, CONSUMER PROTECTION, CORPORATE BONDS, CORPORATE DEBT, CREDIT ENHANCEMENT, CREDIT GUARANTEE, CREDIT HISTORY, CREDIT LINES, CREDIT RISK, CREDIT RISKS, CURRENCY DEPRECIATION, CURRENCY RISK, CURRENT ACCOUNT DEFICIT, DEBT, DEBT CRISIS, DEBT INSTRUMENT, DEBT INSTRUMENTS, DEBT ISSUE, DEBT OBLIGATION, DEBT OBLIGATIONS, DEBT OUTSTANDING, DEPOSITS, DEVALUATION, DOMESTIC MARKETS, EMERGING MARKETS, EXCHANGE RATE, FAIR VALUE, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL INSTABILITY, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENT, FINANCIAL MARKETS, FINANCIAL RISK, FINANCIAL SHOCKS, FINANCIAL STABILITY, FINANCIAL STATEMENTS, FINANCIAL STRESS, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FORECLOSURE, FOREIGN CAPITAL, FOREIGN CURRENCY, FOREIGN CURRENCY LOANS, FOREIGN EXCHANGE, FOREIGN EXCHANGE RISKS, FOREIGN LENDERS, GLOBAL BANKING, GLOBAL ECONOMIES, GROUPS OF LENDERS, HOLDING, HOME OWNERSHIP, HOMEOWNERSHIP, HOST COUNTRY, HOUSEHOLD WEALTH, HOUSING FINANCE, INCOME TAX, INFORMATION SYSTEM, INFORMATION SYSTEMS, INSURANCE COMPANIES, INSURANCE PRODUCTS, INTEREST RATE, INTEREST RATE RISK, INTERNATIONAL CAPITAL, INVESTMENT FUNDS, INVESTMENT OPPORTUNITIES, IRREGULAR INCOMES, ISSUANCE, LENDER, LENDERS, LENDING CYCLE, LENDING INTEREST RATES, LEVEL OF INTEREST RATES, LEVEL OF RISKS, LIABILITY, LIENS, LIFE INSURANCE, LIQUIDITY, LIQUIDITY CRISIS, LIQUIDITY RATIO, LIQUIDITY RATIOS, LIQUIDITY RISKS, LOAN, LOAN DEFAULTS, LOAN MARKET, LOAN OFFICERS, LOAN PERFORMANCE, LOAN PORTFOLIO, LOAN PORTFOLIOS, LOAN PRODUCTS, LOAN REPAYMENT, LOAN TERMS, LOCAL BANKS, LOCAL CURRENCY, LOCAL LENDERS, MACROECONOMIC CONDITIONS, MARKET DATA, MARKET DEEPENING, MARKET DEVELOPMENT, MARKET DEVELOPMENTS, MARKET INFORMATION, MARKET INFRASTRUCTURE, MARKET INSTRUMENT, MARKET INSTRUMENTS, MARKET INTERMEDIARIES, MARKET INTERMEDIARY, MARKET LIQUIDITY, MARKET PARTICIPANTS, MARKET PRACTICE, MARKET SHARE, MARKET STABILITY, MARKET STRUCTURES, MARKET SURVEILLANCE, MATURITY, MATURITY MISMATCHES, MORTGAGE, MORTGAGE FINANCE, MORTGAGE LOAN, MORTGAGE LOANS, MORTGAGE MARKET, MORTGAGE MARKETS, MORTGAGES, NATIONAL BANK, NON-PERFORMING LOAN, NON-PERFORMING LOANS, NPL, OPEN ECONOMIES, PARTICULAR DEBT, PAYMENT OF PRINCIPAL, PENSION, PENSION FUNDS, POLICY RESPONSE, PORTFOLIO, PORTFOLIO ALLOCATION, PORTFOLIO MANAGEMENT, PORTFOLIO PERFORMANCE, PREPAYMENT, PRIVATE CREDIT, PRIVATE CREDIT BUREAUS, PROVISIONING RULES, PRUDENTIAL REGULATIONS, PRUDENTIAL SUPERVISION, PUBLIC MARKET, REAL ESTATE INVESTMENT, REAL ESTATE INVESTMENTS, REAL ESTATE LENDING, REGULAR PAYMENTS, REGULATORY FRAMEWORK, REPAYMENT CAPACITY, REPO, REPO TRANSACTIONS, RESERVE, RESERVE REQUIREMENTS, RESIDENTIAL MORTGAGE, RETURNS, RISK AVERSION, RISK FACTORS, RISK MANAGEMENT, RISK PROFILE, SAVINGS SCHEMES, SHARE OF CREDIT, SHARE OF INVESTMENT, SHAREHOLDER, SHAREHOLDERS, SMALL BUSINESS, SOLVENCY, SOVEREIGN DEBT, SOVEREIGN GUARANTEE, SOVEREIGN RATING, TAX, TAX TREATMENT, TOTAL DEBT, TRADING, TRANCHES, TRANSACTION, TRANSPARENCY, TURNOVER, UNDERDEVELOPED CAPITAL MARKETS, UNDERLYING ASSETS, UNDERLYING MORTGAGE, UNIVERSAL BANKS, VALUATION, VALUATIONS,
Online Access:	http://documents.worldbank.org/curated/en/2013/03/17852623/europe-central-asia-housing-finance-crisis-prevention-resolution-review-policy-options http://hdl.handle.net/10986/16526
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