The optimal model for securitization of mortgage loans granted to entities operating in the banking sector

2019 ◽  
Vol 25 (11) ◽  
pp. 2562-2574
Author(s):  
E.K. Ovakimyan ◽  
Keyword(s):  
Banking Sector ◽  
Optimal Model ◽  
Mortgage Loans

scholarly journals Mortgage as an Available Source of Credit Resources for Investment Financing in 2019

2019 ◽  
Vol 12 (1) ◽  
pp. 86-97
Author(s):  
S. V. Shchurina
Keyword(s):  
Low Income ◽  
Banking Sector ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Easy Access ◽  
Russian Government ◽  
Mortgage Loans ◽  
Loan Default ◽  
Mortgage Rates ◽  
The Government

The subject of the researchis the availability of mortgage as a credit resource for investment funding. The relevance of the problem is due to the development of the mortgage credit lending in the country. The policy of the Central Bank of Russia (CBR) and the Russian Government aimed at combating inflation and planned reduction of the key rate created favorable conditions for establishing acceptable bank rates on mortgage loans, which significantly raised the mortgage demand over the past few years. The research shows that Russian commercial banks have reduced mortgage rates and are offering refunding of previously issued mortgage loans, which demonstrates the confidence of the banking sector in the government and economic stability at the macro level. At the same time, the easy access to home mortgage lending can lead to a “financial bubble” problem on the Russian banking market and, moreover, to deterioration of the borrowers’ solvency, and, therefore, loan default.The purpose of the researchwas to examine the current affordability of mortgage as a source of credit resources for investment funding and develop recommendations for improving this process. The paperconcludesthat the government policy of economic and financial stabilization through inflation combating measures and maintaining the key rate by the CBR at the level acceptable for economic growth should be continued. At the same time, the transition from the participation finance to the project-tied system of housing construction financing can possibly increase the loan interest burden on developers and affect the price per square meter for the final buyer. The main factors contributing to the reduction of mortgage rates are the planned reduction of the key rate by the CBR and low inflation rates, the program of the Government subsidies to the mortgage market as well as the increased supply of low-income housing by developers.

scholarly journals INTERREGIONAL ANALYSIS OF THE STATE AND DYNAMICS OF MORTGAGE LENDING

2021 ◽  
Vol 2 (53) ◽  
pp. 174-181
Author(s):  
 E. V. Sitnikova ◽  
◽  
 D. E. Maksakov ◽  
Keyword(s):  
Housing Market ◽  
Banking Sector ◽  
Calculated Data ◽  
Weighted Average ◽  
Mortgage Lending ◽  
The State ◽  
Regional Level ◽  
Mortgage Loans ◽  
Financial Flows ◽  
Business Entities

Subject. Organizational and economic relations developing during the functioning of the housing market and mortgage lending. Topic. Interregional analysis of the state and dynamics of mortgage lending. Purpose. The purpose of the work is to develop directions for increasing the efficiency of mortgage lending as the most important tool for the development of the housing market. Methodology. The study was carried out using abstract-logical, comparative, economic and statistical approaches, a graphical technique for visualizing statistical and calculated data. Results. To analyze the state of mortgage lending at the regional level, the volume of issued mortgage loans in a territorial context was considered, the structure and dynamics of issued mortgage loans for individuals was studied, the debt on mortgage loans was revealed, the dynamics of the weighted average interest rate in each federal district was analyzed. The analytical review carried out in the study made it possible to draw conclusions about the state of development of mortgage lending in the regions, as well as to offer recommendations for its improvement. Application area. The results of the study, the main provisions, conclusions, recommendations are focused on widespread use by business entities in the process of assessing and analyzing their mortgage lending. Conclusions. The significance of this study is due to the need to identify the degree of development of mortgage lending, which is especially important at the regional level. The purchase of own housing, which will be available not only for certain categories of citizens, but also for the majority of the population of the Russian Federation, is ensured through the development of the mortgage lending market. This form of lending contributes to the satisfaction of not only the interests of the bank and citizens, but also allows to ensure financial flows to the development of the real sector of the economy. Keywords: mortgage, mortgage lending, credit organizations, banking sector, housing construction, debt, regional banking system.

Risk Assessment under Conditions of Uncertainty for Profit in the Banking Sphere: The PAO Sberbank Case

2021 ◽  
Vol 27 (8) ◽  
pp. 1828-1851
Author(s):  
Sergei V. ZAITSEV ◽  
Arina B. ALIBEKOVA ◽  
Anastasiya D. KOROTENKOVA ◽  
Sofiya S. SHISHKINA
Keyword(s):  
Banking Sector ◽  
Threshold Value ◽  
Economic Security ◽  
Loan Portfolio ◽  
Mortgage Loans ◽  
For Profit ◽  
Banking Organization ◽  
Expert Assessments ◽  
Positive Effect

Subject. The article considers the economic relationship between the banking sector and the population. Objectives. We focus on theoretical and empirical analysis of the activities of PAO Sberbank, identifying threats and measures to minimize any damage to the banking organization. Methods. The study rests on the analysis of data provided by PAO Sberbank on its official website. Our calculation of indicators bases on these data. The main methods employed are expert assessments, the method of threshold values of the main threats to economic security. Results. We performed a horizontal and vertical analysis of the financial statements of PAO Sberbank, considered the structure of income and expenses and the bank's loan portfolio by sector of economy. Using the threshold value method, we unveiled the threats inherent in PAO Sberbank and developed a strategy to minimize the identified threats. The findings may be useful for analyzing the bank’s activities and identifying the threats to the banking sector in a socially oriented market economy. Conclusions. The study reveales that this bank is inherent in such threats as low short-term liquidity and loan impairment risk. We offer a strategy that affects the policy of PAO Sberbank. It includes long-term measures to increase the share of mortgage loans, which, as a result, will enable the development of the construction sector and have a positive effect on society as a whole.

scholarly journals Foreign Currency Loans and Stability of the Banking System in Poland

2018 ◽  
Vol 25 (3) ◽  
pp. 67-82 ◽  
Author(s):  
Grażyna A. Olszewska
Keyword(s):  
Exchange Rate ◽  
Banking Sector ◽  
Foreign Currency ◽  
Market Competition ◽  
Banking System ◽  
Mortgage Lending ◽  
Mortgage Loan ◽  
Swiss Franc ◽  
Mortgage Loans ◽  
The Stability

The aim of the study was to answer the question whether and to what extent foreign currency loans may pose a threat to the stability of the banking system in Poland. The reason for exploring this problem is the situation in which Swiss franc mortgage loan parties found themselves. The problem concerned not only Poland, but also appeared in Hungary, Spain and Ukraine. The aforementioned countries have adopted various strategies in order to solve this issue. Currently, there is a discussion in Poland over the form of solution to the situation in which the Swiss franc debtors have found themselves. This article presents the following hypotheses: (1) The credit policy of banks, which includes mortgage lending in Swiss francs, was a typical action in terms of risk management which in this case was two-way in nature. In addition, banks did not have the opportunity to significantly impose its policies on customers, as evidenced by the degree of market development and market competition. (2) Conversion of mortgage loans according to the CHF historic exchange rate can affect the stability of the banking system. The article presents the main types and sources of bank risks with particular emphasis on credit risk and foreign exchange risk. In addition, the paper shows the importance of this kind of risk in the context of the systemic stability of the banking sector in a situation of exchange rate stability disturbances. Verification of the research hypothesis was based on literature studies and analysis of statistical data.

Consequences of the restructuring of loans in Swiss francs in Poland in the light of consumer protection

2018 ◽  
Vol 5 (2) ◽  
pp. 187
Author(s):  
Michał PARTYKOWSKI
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Negative Impact ◽  
Value Added ◽  
Net Income ◽  
Mortgage Loans ◽  
The Public ◽  
Gdp Growth Rate ◽  
Desk Research

Aim: The subject of the paper is to discuss the consequences of the changes in the legislation on mortgage loans in Swiss francs, proposed by the Polish Sejm in August 2015, to the situation in the banking sector and the economy. The topic is important because of the potential impact of such changes on Polish banking industry, and indirectly lower GDP growth rate. Design: The article tries to assess consequences for the sector in next 5 years using set of quantitative and qualitative indicators. Author utilized literature review, experts’ opinions selection, and desk research on statistics data. Conclusions / findings: The author concludes that legislators proposal will bring negative impact of PLN >1 bn net income of the banking industry a year in next 5 years. However, if the legislation will be passed according to KNF’s feedback, most of these costs will be mitigated due to spreading banks’ losses over many years. The paper might be interested to banking and public sector analysts, as it brings a new opinion in the ongoing discussion. However, it is one of several voices in the public debate. Originality / value of the article: The paper brings implications to the legislators and public sector observes, serving as an independent analyze of the topic. Its main limitation is lack of granular quantitative losses estimation for banks, based on a scenario approach, which could add more value added to banking analysts, helping them benchmark their internal assessments.

scholarly journals ACCESS TO MORTGAGE CREDIT AND HOUSING PRICE DYNAMICS

2016 ◽  
Vol 20 (1) ◽  
pp. 64-76
Author(s):  
Eddie C. M. HUI ◽  
Ivan M. H. NG
Keyword(s):  
Housing Market ◽  
Banking Sector ◽  
Housing Price ◽  
Mortgage Lending ◽  
Property Market ◽  
Mortgage Loans ◽  
Macroeconomic Factors ◽  
Mass Housing ◽  
Property Price ◽  
The Relationship

In real estate studies, arguably the most important topic revolves around what actually affect the price of properties. In addition to various macroeconomic factors, the mortgage industry is also believed to play a major role. Nonetheless, despite its profound implications on the banking sector, the property market, and the economy as a whole, there is no consensus as to the relationship between property price and bank mortgage lending. In light of this, this paper aims to investigate the relationship between property price and mortgage lending, along with other macroeconomic variables, in two housing sub-markets of Hong Kong (i.e. the mass housing market and the luxury housing market). The findings illustrate that one-way directional relationships are discovered 1) from mass housing price to mortgage lending; 2) from luxury housing price to mortgage lending; and 3) from mass housing price to luxury housing price. Macroeconomic factors such as GDP, inflation rate, and interest rate are also found to play a major role in influencing the prices of both property markets and the amount of outstanding mortgage loans. Implications based upon these findings are also discussed.

scholarly journals AREAS OF USING INTERNATIONAL EXPERIENCE FOR THE DEVELOPMENT OF SECURITIZATION OF MORTGAGE LOANS IN RUSSIA

2020 ◽  
Vol 1 (5(74)) ◽  
pp. 15-20
Author(s):  
I.V. Belova
Keyword(s):  
Best Practices ◽  
Financial Markets ◽  
World Economy ◽  
Banking Sector ◽  
Banking System ◽  
Mortgage Loans ◽  
Developed Economies ◽  
The World ◽  
Mortgage Securities ◽  
Over 40 Years

The article is devoted to considering the current level of securitization of mortgage assets in Russia and the role that it can play in developing and strengthening the national financial system. The world experience shows that the issue of mortgage securities is a profitable source of financing for credit organizations and stimulates the developmentof the banking sector as a whole. Being one of the most effective economic innovations, the process of securitization of mortgage assets for over 40 years of use in the most developed economies of the world confirms its relevance and importance.Based on the analysis of international best practices in this area, those possible ways of developing securitization of mortgage assets in Russia were identified that would allow our country to maintain the liquidity of the Russian banking system in conditions of growing crisis processes in the world economy and financial markets and give it the necessary sustainability through reliable financial sources.

scholarly journals The loan-to-value ratio as a macroprudential tool and assessment of real estate in the post-crisis period

2020 ◽  
Vol 185 (9-10) ◽  
pp. 119-132
Author(s):  
Aleksandra Pisarska ◽  
◽  
Natalia Wasilewska ◽  
Keyword(s):  
Real Estate ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Maximum Level ◽  
Central Banks ◽  
Real Estate Market ◽  
Mortgage Loans ◽  
The Global Financial Crisis ◽  
The Eu

For more than a decade, banking systems of many countries around the world have been trying to recover from the effects of the global financial crisis. The dynamics of one of the most important indicators of the effective operation of the banking sector - the level of fulfilment of loan obligations by the debtor - is analysed in the present paper. A nonperforming loan ratio (NPL) more than doubled in the EU in the period from 2008 until 2012, and the value of this indicator increased more than 20 times in the period from 2008 until 2017 in Ukraine. Many countries worldwide have focused on activities that aim at minimizing the risks associated with lending. The experience of more than 4,000 banks in 46 countries shows that one of the most effective macroprudential tools used by European central banks for mortgage loans is the loan-to-value ratio (LTV). According to research, central banks have recommended lowering the level of LTV. Thus, in Poland, the loan-to-value ratio used to be 100% and even higher, but from 2017 the maximum level should not exceed 80%. In China, the LTV level has dropped to 40% for the secondary real estate market. In Germany, the maximum loan-to-value ratio is 80%, and mortgages with LTV of less than 60% are financed at more favourable conditions by banks. Using macroprudential policy has made it possible to stabilize the situation in the banking system, therefore in 2020 the average level of non-performing loans in the EU decreased to 2.8%. In Poland, the level of NPL is slightly higher and is 6.2%, however in Ukraine the figure remains high and reaches 41%. This study aims to identify the dependence between the adequacy of fulfilment of the collateral and the debtor’s loan obligations, which is extremely important in order to stabilize and increase the liquidity and profitability of banking institutions. The obtained results are based on the assessment of 200 loan cases for which the execution time has come.

The Systemic Effects of Prudential Regulation Toughening:The Results of a Stress-test for Russian Banks

2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Stress Test ◽  
Credit Market ◽  
Capital Adequacy ◽  
Government Support ◽  
Government Ownership ◽  
Prudential Regulation ◽  
The Government ◽  
The Stability

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.

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