scholarly journals ACCURACY OF AUCTION SALE VALUATIONS IN DISTRESSED BANK LENDING DECISIONS IN NIGERIA

2007 ◽  
Vol 8 (3) ◽  
pp. 225-233 ◽  
Author(s):  
Bioye Tajudeen Aluko
Keyword(s):  
Real Estate ◽  
Bank Lending ◽  
Open Market ◽  
Real Estate Finance ◽  
Property Market ◽  
Frequency Distributions ◽  
Auction Sale ◽  
Good Proxy ◽  
Lending Decisions ◽  
Lending Institutions

Of all the sub‐sectors of the national economy, the banking industry and the property market have arguably been most severely affected by the current recession. Thus, the prevailing credit crunch in real estate finance and market conditions have implication for disposal and valuations of real estate for mortgage purposes. The study examined whether forced sale valuations of mortgage properties were a good proxy for their auction sale prices. Relevant data involving 67 auction sales of foreclosed residential property transactions together with their contemporaneous forced sale valuations were pooled together in Lagos Metropolis during the period 1994 to 2003 from sample of estate surveying and valuation/auctioneering firms, the lending institutions and the Nigeria Deport Insurance Corporation. The data obtained were analyzed with the aid of frequency distributions and multiple regression models. The study revealed, amongst others, that forced sale values are not good proxies for auction sale prices as against the conclusions of previous studies on accuracy of open market valuations either in Nigeria or other countries like UK, USA and Australia. The implications of the foregoing conclusions on the lending decisions and valuation profession in the country were further examined in the paper.

scholarly journals International Real Estate Review

2016 ◽  
Vol 19 (2) ◽  
pp. 151-170
Author(s):  
Lucia Gibilaro ◽  
◽  
Gianluca Mattarocci ◽  
Keyword(s):  
Real Estate ◽  
Bank Lending ◽  
Real Estate Market ◽  
Risk Exposure ◽  
Bank Risk ◽  
Property Market ◽  
The Real Estate ◽  
Significant Difference ◽  
Market Trends ◽  
And Performance

The literature primarily focuses on the effect of changes on property prices in terms of macrovariables and monetary aggregates. Only a few studies have taken into account bank characteristics when considering the effects of real estate market trends on bank lending policies and performance, and there is no study that controls for the type of bank or loan purpose. The paper studies the linkage between property market trends and bank risk exposure. We test for any significant difference of real estate banks with respect to other banks and the different roles of the real estate market trend in explaining changes in bank risk exposure. The empirical evidence demonstrates that real estate banks are not always riskier than other banks, and specialized banks are less sensitive to real estate market trends than other banks.

scholarly journals IMPLICATIONS OF THE CURRENT TREND IN MORTGAGE VALUATION PRACTICE IN NIGERIA

2007 ◽  
Vol 11 (1) ◽  
pp. 17-31 ◽  
Author(s):  
Bioye Tajudeen Aluko
Keyword(s):  
Current Trend ◽  
Prima Facie ◽  
Frequency Distributions ◽  
Mortgage Valuation ◽  
Important Index ◽  
Valuation Process ◽  
Important Input ◽  
Lending Decisions ◽  
Lending Institutions ◽  
The Cost

The emerging concern on the reliability of property valuations coupled with the attendant consequences of growing number of distressed banks in Nigeria necessitate this study. Therefore, the study examined the mortgage valuation process including sources of valuation instructions, bases and methods being adopted and their implications on lending decisions and valuation profession in the study area. To accomplish the study, questionnaires were randomly administered on samples of estate surveying and valuation firms and lending institutions respectively in Lagos Metropolis. The data emanating there from were analysed using frequency distributions, ranking mean and relative important index ranking. The study, prima facie, established that mortgage valuation has been an important input in lending decisions. It further showed the implications of the blind adoption of the cost approach, inconsistency amongst valuers and non ‐ inclusion of insurance valuation in the mortgage valuation process. Būsto paskolų vertinimas Nigerijoje: esamų tendencijų prasmė Santrauka Ši tyrimą paskatino didėjantis rūpestis dėl nekilnojamojo turto vertinimu variantiškumo bei tikslumo ir nuskurdusiu Nigerijos banku sukelti padariniai. Kadangi, priimant sprendimą suteikti paskola, vertinti ja būtina, tyrimo išvados galbūt padėtu ieškoti politiniu sprendimu dėlnesuvaldomo banku žlugimo šalyje. Todėl darbe nustatyta ir ištirta būsto paskolų vertinimo svarba, įskaitant vertinimo instrukcijų šaltiniu, pagrindu ir taikomu metodu reikšme, nagrinėtas būsto paskolų vertinimas, priimat sprendimus suteikti paskola, ir vertintojo profesija šioje srityje. Anketomis ir pokalbiu metu apklaustos 59 atsitiktine tvarka atrinktos turto tikrinimo bei vertinimo firmos (iš 146 aktyviai veikiančiu; iš viso yra 239 tokio pobūdžio firmos) ir 42 skolinančios institucijos iš 89, veikiančiu Lagose. Gauti duomenys išanalizuoti skaičiuojant pasiskirstymą, garantavimas ir santykines svarbos indeksą. Tyrimu nustatyta, kad teikiamas paskolas vertinti yra svarbu. Tolesne analize parodę, kad į būsto paskolų vertinimąneįeina draudimo vertinimas, aklai pasirenkamas sąnaudųaspektas ir vertintoju nuomones dėl būsto paskolų skiriasi. Tai, kas išdėstyta, skirta vertintojams, skolintojams arba kitiems vertinimo paslaugu vartotojams ir turto rinkai apskritai.

scholarly journals Forward Guidance and Corporate Lending

2021 ◽  
Author(s):  
Manthos D Delis ◽  
Sizhe Hong ◽  
Nikos Paltalidis ◽  
Dennis Philip
Keyword(s):  
Bank Lending ◽  
Open Market ◽  
Federal Open Market Committee ◽  
Lending Relationships ◽  
Forward Guidance ◽  
Performance Pricing ◽  
Syndicate Structure ◽  
Lending Decisions ◽  
Loan Spreads ◽  
Corporate Loan

Abstract We suggest that forward guidance, via publicly committing the central bank to future actions and creating associated expectations, fundamentally affects bank lending decisions independently of other forms of monetary policy. To test this hypothesis, we build a forward guidance measure based on the language used in the Federal Open Market Committee meetings and match this measure with syndicated loans. Our results show that expansionary forward guidance decreases corporate loan spreads and that this effect is stronger for well-capitalized banks lending to riskier firms. Forward guidance also affects nonprice lending terms, such as covenants, performance pricing provisions, and the loan syndicate structure. Additionally, banks tend to initiate new lending relationships with lower spreads after forward guidance issuance.

scholarly journals RELIABILITY OF MORTGAGE VALUATION FOR INSTITUTIONAL LENDING IN NIGERIA

2004 ◽  
Vol 8 (4) ◽  
pp. 193-203
Author(s):  
Bioye Tajudeen Aluko
Keyword(s):  
Deposit Insurance ◽  
Open Market ◽  
Investment Performance ◽  
Pooled Data ◽  
Mortgage Valuation ◽  
Multiple Regression Models ◽  
Good Proxy ◽  
Lending Institutions ◽  
Market Valuations ◽  
Transaction Price

The growing number of distressed banks in Nigeria and the recognition of mortgage valuation as a measure of investment performance of collaterals to mitigate the risks of loan underwriting process necessitates this study. It examined whether open market valuations of mortgage properties were a good proxies for their sale prices. Pooled data, involving 121 open market sales during the period 1994 to 2002, on property transactions in the study area with their corresponding contemporaneous valuations were gathered from the estate surveying and valuation firms, the lending institutions and the Nigerian Deposit Insurance Corporation. The data emanating therefrom were analysed with the aid of multiple regression models. The study revealed, amongst other things, that open market valuation for mortgage is a good proxy for their transaction price in the study area; although, the accuracy is not as good as what obtains in U.K, U.S.A. and Australia.

scholarly journals DIVERSIFICATION BENEFITS IN THE FINNISH COMMERCIAL PROPERTY MARKET

2009 ◽  
Vol 13 (1) ◽  
pp. 23-35 ◽  
Author(s):  
Heidi Falkenbach
Keyword(s):  
Real Estate ◽  
21St Century ◽  
Portfolio Theory ◽  
Early Years ◽  
Property Market ◽  
Commercial Property ◽  
Main Motivation ◽  
Real Estate Investments ◽  
Asset Portfolio ◽  
In The Beginning

The Finnish commercial property market internationalised rapidly in the beginning of the 21st century. According to the portfolio theory and previous research on international property investments, the main motivation factor driving international real estate investments is the possibility to reach diversification benefits. The paper discusses the diversification benefits offered by the Finnish property market in its early years of internationalisation. As international real estate investors in the Finnish property market include investors with both real estate only, as well as mixed‐asset portfolios, the diversification benefits are studied both in terms of a Finnish mixed-asset portfolio, as well as international real estate portfolio. Santruka XXI a. pradžioje Suomijos komercinio nekilnojamojo turto rinkoje sparčiai vyko tarptautiniai procesai. Remiantis portfelio teorija ir ankstesniais tyrimais apie tarptautines investicijas i nekilnojamaji turta, pag rindinis veiksnys, kuris skatina tarptautines nekilnojamojo turto investicijas ‐ tai galimybe gauti diversifi kacijos teikiama nauda. Darbe aptariama, kokia nauda siūle Suomijos nekilnojamojo turto rinka ankstyvaisiais internacionalizacijos metais. Kadangi kai kurie Suomijos nekilnojamojo turto rinkoje veikiantys tarptautiniai nekilnojamojo turto investuotojai užsiima tik nekilnojamuoju turtu, o yra ir tokiu, kurie turi mišraus turto portfelius, diversifi kacijos nauda nagrinejama ir pagal Suomijos mišraus turto portfeli, ir pagal tarptautini nekilnojamojo turto portfeli.

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