Residential Mortgage Finance and Housing Markets in Russia February 9, Britt Gwinner The World Bank
|
|
- Carmella Fleming
- 8 years ago
- Views:
Transcription
1 Residential Mortgage Finance and Housing Markets in Russia February 9, 2004 Britt Gwinner The World Bank 1
2 Overview of Presentation Two Sections: 1. Residential Mortgage Finance Internationally 2. Mortgage Finance in Russia 2
3 1. Residential Mortgage Finance Internationally 3
4 What Does Housing Finance Provide in Other Countries?! Access to high quality housing for moderate income families! Safe, long term assets for banks and investors! A stable source of financing for developers! Jobs in finance, construction, and maintenance! An important source of savings and wealth creation 4
5 Housing Finance Depth 39% of EU GDP v. 0.1% Russia Denm ark Netherlands UK Germany Sw eden Portugal Norw ay EU-15 Ireland Spain Finland Belgium France Greece Italy 12% 10% 19% 70% 66% 59% 54% 50% 47% 45% 39% 33% 32% 29% 27% European figures for Source: Renaud,
6 Housing Finance and Economic Development " Strategies to develop mortgage finance systems are an integral part of developing the financial sector " The core functions of mortgage finance systems are universal. System expansion depends on lowering the costs of these core functions. " There is no universally applicable model of a mortgage finance system. Source: Renaud,
7 What Does it Take to Develop Housing Finance?! Macroeconomic stability is a prerequisite. Macroeconomic volatility affects disproportionately all forms of long-term finance, of which mortgage finance is the most important.! Finance is a derivative of the real sector. How do local housing markets operate:! What is the share of informal or extra-legal housing supply?! Share of rental versus owned housing supply?! How affordable is housing? What is the price-to-income ratio level?! What is the total cost of mortgage borrowing: loan rate + transaction taxes and fees?! What is the structure of subsidies and what are their main channels?! High transaction taxes and fees can suppress mortgage demand! Small financial systems are very common in emerging economies. Unfortunately, in finance small is seldom efficient. Source: Renaud,
8 2. Mortgage Finance in Russia 8
9 Weak Primary Housing Markets Fail to Deliver Enough Apartments! Homeowners do not pay for maintenance - Soviet- era administrative and legal structures reduce the value of apartments! Risky, inefficient share financing funds construction - a major business for banks in other countries! Difficult and expensive to obtain land, sell or buy properties, or register title changes reduces value of apartments! For banks to offer mortgages, borrowers must risk losing their property if they default -- # Re-housing requirement, residential registration obstructs execution of mortgage pledge 9
10 A Fragmented Financing System State Pension Fund Private Pension Funds No links yet Insurance Companies Taxes Public Regional Agencies Mortgages Mortgages Cash Federal Agency Cash Bonds Some Savings Banks Home Buyers Mortgages 10
11 Savings Are Not Mobilized Effectively! Limited funding cycle - most savings remain in cash, outside of banks! Lenders are funded by: # External funds (e.g., Raffeisenbank,, Delta Credit) # Taxes (regional agencies) # A Few Deposits (e.g., Sberbank, Vneshtorgbank) 11
12 Lenders Lack Funding Instruments! Mortgages with terms of twenty years need similar term funding to avoid mismatch risk! Mortgage bonds permit banks to match fund, retain mortgages on balance sheet! Securitization permits sale of risk, specialization as originators & servicers! Banks should be able to choose mortgage bonds or securitization based on financial risk, market pricing, and strategic decisions, not on the basis of gaps in regulatory framework 12
13 No Links to Institutional Investors! Pension funds, insurers need long-lived lived assets as they grow, will have the resources to support the mortgage finance market! Regional mortgage agencies are funded with taxes and by sales of mortgages to Federal Agency but resources limited! Need to implement recent mortgage securities law -- mortgage bonds or MBS for investors! Rating agencies should play an important part in transparency 13
14 Currency Risk! Mortgage lending needs to be in Rubles to reach broadly into moderate income households! Much bank lending has been in U.S. Dollars, but most borrowers earn Rubles # Burdens borrowers with currency risk, # Raises credit risk of lenders should the Ruble devalue 14
15 Risk is Not Allocated Efficiently! Risk is not currently priced well or shared effectively among borrowers, banks, regional & Federal governments # Borrowers need to know their home is at risk if they default; # Banks need to price mismatch and credit risks, hold capital against them or sell them # Investors need to earn an adequate rate of return, intermediaries need to be paid for risks and costs 15
16 Requirements for Sustainability! To deliver adequate housing for the long term, the financing system must: # Compensate investors and lenders for risk, # Compensate each business process, # Mobilize savings, # Reward effective risk management 16
17 Alternative Structures for Risk Sharing! Regional agencies could take a limited credit risk position, pay banks to originate loans, banks would also bear a portion of credit risk.! The Federal Government, together with private insurers, could offer credit risk insurance on a portion of each loan.! The government and private sector could offer credit enhancements for bank-issued mortgage bonds or MBS # Better leverage of government guarantees, # A motivation for large banks to lend. 17
18 Subsidies Need to be Targeted, Efficient, and Transparent! Subsidizing interest rates for borrowers hinders the development of financial markets! Subsidizing interest rates for savers tends to allocate subsidies to the wealthy! Any tax breaks for mortgage borrowers should be targeted and limited! Targeted, up-front subsidies for qualified families can contribute to the growth of the housing system and wealth-building for targeted populations 18
19 Level Regulatory Playing Field! Regulate according to the risk taken! Reporting requirements should be detailed and thorough for lenders and investors! Public and private sector lenders should be subject to the same safety and soundness rules - similar regulatory regime for similar risks taken! Consumer disclosures must clearly describe the financial and legal obligations of the mortgage 19
20 Conclusions! The housing needs of Russia are acute! Mortgage finance can help, if incentives and policy structures support markets! Government involvement must support markets, be limited, and be carefully targeted, if it is to lead to a sustainable supply of housing! At this conference, we will discuss feasible solutions for Russia 20
HOUSING FINANCE IN TRANSITION ECONOMIES
HOUSING FINANCE IN TRANSITION ECONOMIES OECD Workshop Warsaw, Poland December 5-6, 5 2002 Loïc Chiquier The World Bank 1 Challenge in Transition Economies! Key for growth, poverty, wealth (75 wealth),
More informationSUSTAINABLE HOUSING FINANCE
SUSTAINABLE HOUSING FINANCE Recovery, Sustainability, and Evolution: Perspectives on the Real Estate Economy 26 June, Geneva Mark Weinrich Manager International Relations & Senior Economist Association
More informationDeveloping Kenya s Mortgage Market
Developing Kenya s Mortgage Market Simon Walley Senior Housing Finance Specialist World Bank 17 February, 2011 - Nairobi Outline Rationale for developing the mortgage market Mortgage Market Summary Housing
More informationThe Debt Challenge in Europe. Alan Ahearne and Guntram Wolff October 2011
The Debt Challenge in Europe Alan Ahearne and Guntram Wolff October 2011 Outline The challenge: debt overhang and price adjustment. Large increase in private debt prior to the crisis. Balance-sheet adjustments
More informationBreakout Session 1: Mortgage Lenders How can we Incentivize Lenders to Grant more Housing Loans?
Breakout Session 1: Mortgage Lenders How can we Incentivize Lenders to Grant more Housing Loans? Dr. Friedemann Roy IFC Financial Institutions Group Durban October 27, 2015 Work program for break-out session
More informationInsurance corporations and pension funds in OECD countries
Insurance corporations and pension funds in OECD countries Massimo COLETTA (Bank of Italy) Belén ZINNI (OECD) UNECE, Expert Group on National Accounts, Geneva - 3 May 2012 Outline Motivations Insurance
More informationA Privatized U.S. Mortgage Market
A Privatized U.S. Mortgage Market Dwight Jaffee Haas School of Business University of California, Berkeley Presented to Conference on The GSEs, Housing, and The Economy Reagan Center, Washington DC, January
More informationAthens University of Economics and Business
Athens University of Economics and Business MSc in International Shipping, Finance and Management Corporate Finance George Leledakis An Overview of Corporate Financing Topics Covered Corporate Structure
More informationLoan Capital Formation Strategy of Companies I.D. Anikina*
Abstract Loan Capital Formation Strategy of Companies I.D. Anikina* Defines of principles, goals, objectives, stages and factors of loan capital companies. Analyzed the main methods of forming loan capital
More information11.437 Financing Community Economic Development Class 6: Fixed Asset Financing
11.437 Financing Community Economic Development Class 6: Fixed Asset Financing I. Purpose of asset financing Fixed asset financing refers to the financing for real estate and equipment needs of a business.
More informationNational Counties Building Society. A guide to our Buy to Let Mortgage lending criteria
National Counties Building Society A guide to our Buy to Let Mortgage lending criteria Issued: 01 July 2016 A guide to our Buy to Let Mortgage lending criteria Introduction This document outlines a summary
More informationFinancial market integration and economic growth: Quantifying the effects, Brussels 19/02/2003
Financial market integration and economic growth: Quantifying the effects, Brussels 19/02/2003 Presentation of «Quantification of the Macro-Economic Impact of Integration of EU Financial Markets» by London
More informationSEB s Swedish Residential Mortgage Lending and Covered Bonds. Stockholm September, 2013
SEB s Swedish Residential Mortgage Lending and Covered Bonds Stockholm September, 2013 Contents SEB s Residential Mortgage Lending p.3 Asset Quality p.19 Cover Pool and Covered Bond Funding p.24 2 SEB
More informationImportance of Credit Rating
Importance of Credit Rating A credit rating estimates ability to repay debt. A credit rating is a formal assessment of a corporation, autonomous governments, individuals, conglomerates or even a country.
More informationIntroduction to Mortgage Insurance. Mexico City November 2003
Introduction to Mortgage Insurance Mexico City November 2003 Agenda United Guaranty Mortgage guaranty insurance Industry history Product structure and risk factors Advantages of mortgage insurance Process
More informationHow To Understand The Concept Of Securitization
Asset Securitization 1 No securitization Mortgage borrowers Bank Investors 2 No securitization Consider a borrower that needs a bank loan to buy a house The bank lends the money in exchange of monthly
More informationSURVEY OF INVESTMENT REGULATION OF PENSION FUNDS. OECD Secretariat
SURVEY OF INVESTMENT REGULATION OF PENSION FUNDS OECD Secretariat Methodological issues The information collected concerns all forms of quantitative portfolio restrictions applied to pension funds in OECD
More informationMortgages and Mortgage -Backed Securiti curi es ti Mortgage ort gage securitized mortgage- backed securities (MBSs) Primary Pri mary Mortgage Market
Mortgages and Mortgage-Backed Securities Mortgage Markets Mortgages are loans to individuals or businesses to purchase homes, land, or other real property Many mortgages are securitized Many mortgages
More informationFinance (Basic) Ludek Benada Department of Finance Office 533 75970@mail.muni.cz
Finance (Basic) Ludek Benada Department of Finance Office 533 75970@mail.muni.cz Structure of lectures Introduction to finance Financial markets Banks and bank systems Other financial institutions Present
More informationHow Hedging Can Substantially Reduce Foreign Stock Currency Risk
Possible losses from changes in currency exchange rates are a risk of investing unhedged in foreign stocks. While a stock may perform well on the London Stock Exchange, if the British pound declines against
More informationThe Determinants of Global Factoring By Leora Klapper
The Determinants of Global Factoring By Leora Klapper Factoring services can be traced historically to Roman times. Closer to our own era, factors arose in England as early as the thirteenth century, as
More information5 Interesting Facts about the Peer to Peer (P2P) Market
5 Interesting Facts about the Peer to Peer (P2P) Market 1 P2P is not crowdfunding PEER TO PEER LENDING CROWDFUNDING The practice of unrelated individuals or companies lending money directly to one another
More informationLong term financing for housing in Europe
Long term financing for housing in Europe 4th September 2015 Rio de Janeiro Christian König Association of Private Bausparkassen representative of our members interests (12 Bausparkassen) towards politics,
More informationThe Danish mortgage system: Advantages, challenges, and lessons learned
The Danish mortgage system: Advantages, challenges, and lessons learned 1 ICELAND PRESENTATION JULY 1, 2014 J E S P E R R A N G V I D P R O F E S S O R, C B S C H A I R M A N, D A N I S H F I N A N C I
More informationPublic Policy and Innovation: Partnering with Capital Markets through Securitization. Antonio Baldaque da Silva November 2007
Public Policy and Innovation: Partnering with Capital Markets through Securitization Antonio Baldaque da Silva November 2007 Agenda 1. Motivation: Innovation and Public Policy 2. Traditional tools 3. Alternatives:
More informationThe Approach of the Banking Regulator
Surveillance of Mortgage Credit The Approach of the Banking Regulator Workshop on Real Estate t Prices and Financial Stability 25th April 2014 Central Bank of Chile Eric Parrado Chairman Superintendency
More informationEuropean integration : prospects for the mortgage lending industry
European integration : prospects for the mortgage lending industry Judith Hardt Secretary General European Mortgage Federation 1 A. DIVERSITY OF PROPERTY AND MORTGAGE MARKETS European property and mortgage
More informationPRACTICE- Unit 6 AP Economics
PRACTICE- Unit 6 AP Economics Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The term liquid asset means: A. that the asset is used in a barter exchange.
More informationFactoring, reverse factoring and other tools for access to finance. Ivor Istuk. Friday, 22 November 2013
Factoring, reverse factoring and other tools for access to finance Ivor Istuk Friday, 22 November 2013 OUTLINE Outline of presentation 1. Problem of late payments 2. Factoring good mitigation tool Defining
More informationFSB invites feedback on residential mortgage underwriting practices
Press release Press enquiries: Basel +41 76 350 8430 Press.service@bis.org Ref no: 38/2010 20 September 2010 FSB invites feedback on residential mortgage underwriting practices The Financial Stability
More informationThe importance of long-term financing by banks
Forschungsberichte aus dem Institut der deutschen Wirtschaft Köln Nr. 102 Michael Hüther / Michael Voigtländer / Heide Haas / Philipp Deschermeier The importance of long-term financing by banks Advantages
More informationUnited States House of Representatives. Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
United States House of Representatives Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises Credit Default Swaps on Government Debt: Potential Implications of the Greek Debt
More informationGovernor Erkki Liikanen Bank of Finland. Monetary policy and its transmission to the economy
Governor Erkki Liikanen Bank of Finland Monetary policy and its transmission to the economy 9.6.2015 1 1. Commitment to accommodative monetary policy benefits the economic outlook 2 Interest rate policy
More informationQ&A for Small Business Owners
Q&A for Small Business Owners What did the Obama Administration announce today? The Treasury Department will commit up to $15 billion to help unlock the secondary markets for small business loans. By purchasing
More informationThe relationship of accounting ratios in balance sheets
The relationship of accounting ratios in balance sheets Accounting Ratios are the ratios show the relationship between accounting data in a balance sheet, profit and loss account in a particular organization.
More informationDebt and (not much) deleveraging
Debt and (not much) deleveraging Peterson Institute for International Economics Susan Lund, McKinsey Global Institute Global debt has increased by $57 trillion since the crisis began with $25 trillion
More informationFocus on fleet customers SAF-HOLLAND 1st half-year results 2014
Focus on fleet customers SAF-HOLLAND 1st half-year results 214 Detlef Borghardt, CEO Wilfried Trepels, CFO August 7, 214 Executive Summary 1 Increase in group sales by 1.7% to 482.mn (previous year: 435.6)
More informationRecommendations for Improving the Effectiveness of Mortgage Banking in Belarus The Refinance Side
IPM Research Center German Economic Team in Belarus Recommendations for Improving the Effectiveness of Mortgage Banking in Belarus The Refinance Side PP/07/03 Summary Mortgage lending is of crucial importance
More informationCorporate Credit Analysis. Arnold Ziegel Mountain Mentors Associates
Corporate Credit Analysis Arnold Ziegel Mountain Mentors Associates I. Introduction The Goals and Nature of Credit Analysis II. Capital Structure and the Suppliers of Capital January, 2008 2008 Arnold
More informationBuilding Agribusiness Risk Management System: Strategy and Stages of Development
Building Agribusiness Risk Management System: Strategy and Stages of Development Roman Shynkarenko Agricultural Insurance and Risk Management Consultant Most Ukrainian experts in agricultural risks insurance
More informationCOMMERCIAL LOAN OVERVIEW
COMMERCIAL LOAN OVERVIEW A BORROWER S GUIDE COMMERCIAL LOAN OVERVIEW GUIDE Commercial Mortgage Underwriting Guidelines and Process Commercial financing for commercial properties is underwritten on a case
More informationWhat s on a bank s balance sheet?
The Capital Markets Initiative January 2014 TO: Interested Parties FROM: David Hollingsworth and Lauren Oppenheimer RE: Capital Requirements and Bank Balance Sheets: Reviewing the Basics What s on a bank
More informationNatalia Orlova, Chief Economist December 2004 Norlova@alfabank.ru +7 095 795 36 77
New Environment for Refinancing in Russia Natalia Orlova, Chief Economist December 2004 Norlova@alfabank.ru +7 095 795 36 77 Excessive sterilization depressed liquidity Banking crisis stemmed from a decline
More information4 Distribution of Income, Earnings and Wealth
4 Distribution of Income, Earnings and Wealth Indicator 4.1 Indicator 4.2a Indicator 4.2b Indicator 4.3a Indicator 4.3b Indicator 4.4 Indicator 4.5a Indicator 4.5b Indicator 4.6 Indicator 4.7 Income per
More informationHow To Divide Life Insurance Assets Into Two Accounts
2ASSETS Assets held by life insurers back the companies life, annuity, and health liabilities. Accumulating these assets via the collection of premiums from policyholders and earnings on investments provides
More informationAnswers to Concepts in Review
Answers to Concepts in Review 1. (a) In the money market, short-term securities such as CDs, T-bills, and banker s acceptances are traded. Long-term securities such as stocks and bonds are traded in the
More informationFROM: James Ballentine, Executive Vice President, Congressional Relations and Public Policy
James Ballentine Executive Vice President Congressional Relations and Political Affairs 202-663-5359 jballent@aba.com April 17, 2014 TO: Members of the Senate Banking Committee FROM: James Ballentine,
More informationFindings: City of Tshwane
Findings: City of Tshwane What s inside High-level Market Overview Housing Performance Index Affordability and the Housing Gap Leveraging Equity Understanding Housing Markets in Tshwane, South Africa High-level
More informationAHML s role in housing market development and providing housing to low-income families in Russia. N.Yu. Koltsova, AHML Deputy CEO
AHML s role in housing market development and providing housing to low-income families in Russia N.Yu. Koltsova, AHML Deputy CEO 1 2013 Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul
More informationLending Solutions. Leverage-based products to complement investment strategies. Your Business Without Limits
Lending Solutions Leverage-based products to complement investment strategies Your Business Without Limits Let Pershing Help You Set Yourself Apart Your clients count on you to manage their assets. But
More informationComments by Edward Golding at the Wharton School, University of Pennsylvania Conference on Fixing the Housing Finance System, April 27, 2005.
Comments by Edward Golding at the Wharton School, University of Pennsylvania Conference on Fixing the Housing Finance System, April 27, 2005. Freddie Mac s and Fannie Mae s Contribution to the Economy
More informationHow Bankers Think. Build a sound financial base to support your company for future growth
How Bankers Think Build a sound financial base to support your company for future growth Presented by: Lisa Chapman Business Planning, Social Media Marketing & SEO 615-477-8412 Questions to Consider First
More informationMORTGAGE DEFAULT INSURANCE
MORTGAGE DEFAULT INSURANCE Workshop with PC: Human Settlements Presenter: Ulrike Rwida Public Finance, National Treasury 17 April 2013 Contents Profile of housing in South Africa New housing supply trends
More informationHOUSING FINANCE SYSTEMS FOR COUNTRIES IN TRANSITION PRINCIPLES AND EXAMPLES
BUNDESAMT FÜR WOHNUNGSWESEN OFFICE FEDERAL DU LOGEMENT UFFICIO FEDERALE DELLE ABITAZIONI UFFIZI FEDERAL PER L'ABITAR STORCHENGASSE 6 2540 GRENCHEN / GRANGES TELEFON 032 / 654 91 11 TELEFAX 032 / 654 91
More informationAlcohol Consumption in Ireland 1986-2006 A Report for the Health Service Executive
Alcohol Consumption in Ireland 1986-2006 A Report for the Health Service Executive Prepared by Dr. Ann Hope This report should be referenced: Hope, A. (2007). Alcohol consumption in Ireland 1986-2006.
More informationMacroprudential Policies in Korea
1 IMF-Riksbank Conference Stockholm, November 13~14, 2014 Macroprudential Policies in Korea Tae Soo Kang Disclaimer This presentation represents the views of the author and not necessarily those of the
More informationOpportunities for a Green Bank in California
Opportunities for a Green Bank in California California has long been a leader in developing and deploying clean, low-carbon technologies, in large part due to its supportive public policies. Revenues
More informationFROM GOVERNMENT DEFICIT TO DEBT: BRIDGING THE GAP
FROM GOVERNMENT DEFICIT TO DEBT: BRIDGING THE GAP Government deficit and debt are the primary focus of fiscal surveillance in the euro area, and reliable data for these key indicators are essential for
More informationEngaging Institutional Finance with Affordable Housing: What, Why and How? Hal Pawson, Assoc Director, City Futures Research Centre, UNSW
Engaging Institutional Finance with Affordable Housing: What, Why and How? Hal Pawson, Assoc Director, City Futures Research Centre, UNSW Context In Aus, as well as US, UK and elsewhere, 20 years since
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
ECON 4110: Sample Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists define risk as A) the difference between the return on common
More informationVanguard UK Short-Term Investment Grade Bond Index Fund
Vanguard UK Short-Term Investment Grade Bond Index Fund May 2013 LAUNCH BRIEFING Fund summary The Vanguard UK Short-Term Investment Grade Bond Index Fund expands the low-cost asset allocation building
More informationFixed Exchange Rates and Exchange Market Intervention. Chapter 18
Fixed Exchange Rates and Exchange Market Intervention Chapter 18 1. Central bank intervention in the foreign exchange market 2. Stabilization under xed exchange rates 3. Exchange rate crises 4. Sterilized
More informationMortgage Origination: Important Lessons for South Africa
Mortgage Origination: Important Lessons for South Africa Anthea P Amadi-Echendu University of South Africa, Pretoria amadiap@unisa.ac.za Doi:10.5901/mjss.2014.v5n10p45 Abstract Traditionally banks sold
More informationRegulatory aspects of Energy Investment Conditions in European Countries
CEER Memo on Regulatory aspects of Energy Investment Conditions in European Countries Ref: C14-IRB-23-03a 27-April-2015 Council of European Energy Regulators asbl Cours Saint-Michel 30a, Box F 1040 Brussels,
More informationItalian Factoring Market: An Almost Success Story
Italian Factoring Market: An Almost Success Story Rony Hamaui CEO Mediofactoring Milan February 2009 The Italian Market is Large. Turnover 2007 Billion of EUR 400 300 286 200 100 0 123 122 97 89 84 78
More informationConducting Monetary Policy with Large Public Debts. Gita Gopinath Harvard University
Conducting Monetary Policy with Large Public Debts Gita Gopinath Harvard University 1 Large Public Debts Net Government debt to GDP Greece 155 Japan 134 Portugal 111 Italy 103 Ireland 102 United States
More informationDevelopment of consumer credit in China
Development of consumer credit in China Shen Bingxi and Yan Lijuan 1 Summary Consumer credit particularly personal consumer loans such as home mortgages and loans financing purchases of automobiles and
More informationChart I.1. Difference between Primary Surplus (PS) and Bond Yield Spreads in Selected EU 1 Countries
LIST OF CHARTS Chart I.1. Difference between Primary Surplus (PS) and Bond Yield Spreads in Selected EU 1 Countries Chart I.2. Gross Debt Stock and Budget Deficits of Selected Countries as of 2010 1 Chart
More informationSpecial Purpose Entities (SPEs) and the. Securitization Markets
Special Purpose Entities (SPEs) and the Securitization Markets Prepared by: The Bond Market Association International Swaps & Derivatives Association Securities Industry Association February 1, 2002 Special
More informationThe History of Crisis. Background Information: The Financial Crisis and Fair Value
The History of Crisis What is going on? Privatisation of money supply Financialisation: commodification of money and debt (linked to accounting) Deregulated global flow of capital (but not labour) (linked
More informationA European Unemployment Insurance Scheme
A European Unemployment Insurance Scheme Necessary? Desirable? Optimal? Grégory Claeys, Research Fellow, Bruegel Zsolt Darvas, Senior Fellow, Bruegel Guntram Wolff, Director, Bruegel July, 2014 Key messages
More informationBS2551 Money Banking and Finance. Institutional Investors
BS2551 Money Banking and Finance Institutional Investors Institutional investors pension funds, mutual funds and life insurance companies are the main players in securities markets in both the USA and
More informationHMBS Overview. Ginnie Mae s Program to Securitize Government Insured Home Equity Conversion Mortgages
HMBS Overview Ginnie Mae s Program to Securitize Government Insured Home Equity Conversion Mortgages Table of Contents Tab A: Program Overview Tab B: Home Equity Conversion Mortgage (HECM) Trends Tab C:
More informationWhat if BAU would come true?
What if BAU would come true? Scanning transport CO 2 emissions in the EU Petri Tapio & Jyrki Luukkanen Finland Futures Research Centre The approach Introduction of general trends on EU15 level GDP Transport
More informationThe Banking System and the Money Supply. 2003 South-Western/Thomson Learning
The Banking System and the Money Supply 2003 South-Western/Thomson Learning What Counts as Money MONEY Anything that is widely accepted as a means of payment What Counts as Money MONEY Anything that is
More informationThe Eurosystem Household Finance and Consumption Survey. Statistical Tables APRIL 2013
The Eurosystem Household Finance and Consumption Survey Statistical Tables APRIL This set of tables has been prepared by the members of the Eurosystem Household Finance and Consumption Network. You can
More informationTwo types of credit market: informal and formal
Lecture notes 8: Credit Markets Credit markets very important to efficient running of economy o Saving for retirement, etc. o Borrowing to start and run a business, operate a farm etc. Credit markets in
More informationWORLD BANK. SME Financing and the SME ABS Market in Europe
WORLD BANK SME Financing and the SME ABS Market in Europe Michel Noel Lead Financial Sector Specialist Finance and Private Sector Development, Europe & Central Asia AGENDA SME Financing in Europe Asset-Backed
More informationthe actions of the party who is insured. These actions cannot be fully observed or verified by the insurance (hidden action).
Moral Hazard Definition: Moral hazard is a situation in which one agent decides on how much risk to take, while another agent bears (parts of) the negative consequences of risky choices. Typical case:
More informationPIBA s Submission to Macro-prudential policy for residential mortgage lending
PIBA s Submission to Macro-prudential policy for residential mortgage lending NOVEMBER 2014 Introduction The Professional Insurance Brokers Association (PIBA) is a representative body of Mortgage, Financial
More informationSBERBANK GROUP S IFRS RESULTS. March 2015
SBERBANK GROUP S IFRS RESULTS 2014 March 2015 SUMMARY OF PERFORMANCE FOR 2014 STATEMENT OF PROFIT OR LOSS Net profit reached RUB 290.3bn (or RUB 13.45 per ordinary share), compared to RUB 362.0bn (or RUB
More informationPrepared for the future. Within your own four walls. Making the dream of your own home come true - step-by-step.
Prepared for the future. Within your own four walls. Making the dream of your own home come true - step-by-step. Prepared for the future. The dream of your own four walls is as old as mankind itself. Creating
More informationSelecting sources of finance for business
Selecting sources of finance for business by Steve Jay 08 Sep 2003 This article considers the practical issues facing a business when selecting appropriate sources of finance. It does not consider the
More informationFIRST-TIME BUYERS ALMOST 10% BETTER OFF BUYING THAN RENTING
NOT FOR BROADCAST OR PUBLICATION BEFORE 00.01 HRS ON SATURDAY 14 FEBRUARY 2015 FIRST-TIME BUYERS ALMOST 10% BETTER OFF BUYING THAN RENTING The Halifax Buying vs. Renting Review tracks the costs of buying
More informationReleasing Housing Equity
Briefing 3 Releasing Housing Equity February 2010 The aim of this briefing is to present findings about the means especially financial products whereby European households might release the equity in their
More informationLecture 2: Financial Innovation in Residential Housing Finance: Funding, Risk Transfer, and Efficient Asset Use September 28, 2011
Observations on the Future of Financial Innovation and Engineering: Addressing Financial Challenges of the Economy Robert C. Merton 2011 Princeton Lectures in Finance Lecture 2: Financial Innovation in
More informationMarket Organization and Structure. Larry Harris Los Angeles, U.S.A. Contents:
1 Market Organization and Structure Larry Harris Los Angeles, U.S.A. Contents: LEARNING OUTCOMES... 3 1 INTRODUCTION... 3 2 THE FUNCTIONS OF THE FINANCIAL SYSTEM... 4 2.1 HELPING PEOPLE ACHIEVE THEIR PURPOSES
More informationDEMOGRAPHICS AND MACROECONOMICS
1 UNITED KINGDOM DEMOGRAPHICS AND MACROECONOMICS Data from 2008 or latest available year. 1. Ratio of over 65-year-olds the labour force. Source: OECD, various sources. COUNTRY PENSION DESIGN STRUCTURE
More informationEconomic Outlook of Finland
Economic Outlook of Finland Pentti Hakkarainen Deputy Governor 9 June 2011 1 2 Heading for stable monetary conditions 1865 1999 MARKKA joins silver standard EURO taken into use 3 Two roles of the Bank
More informationHow To Improve Profits At Bmoi
Bank of America Merrill Lynch Banking and Insurance CEO Conference London, 29 September 2009 Good morning. I d like to thank Bank of America Merrill Lynch for letting us speak this morning. Before I talk
More informationContents. Finalised guidance. Guidance on the Financial Policy Committee s recommendation on loan to income ratios in mortgage lending.
Finalised guidance Guidance on the Financial Policy Committee s recommendation on loan to income ratios in mortgage lending October 2014 Contents 1. Background 2. Summary of feedback received and our response
More information11/6/2013. Chapter 16: Government Debt. The U.S. experience in recent years. The troubling long-term fiscal outlook
Chapter 1: Government Debt Indebtedness of the world s governments Country Gov Debt (% of GDP) Country Gov Debt (% of GDP) Japan 17 U.K. 9 Italy 11 Netherlands Greece 11 Norway Belgium 9 Sweden U.S.A.
More informationKey Performance Indicators. Gene Clayton Irish Council for Social Housing
Key Performance Indicators Gene Clayton Irish Council for Social Housing KPIs : Who needs Them? Background 2008/09 Credit Crunch: sudden lack of normal availability of finance Worldwide inability/unwillingness
More informationList of provisions for consumer protection
List of provisions for consumer protection Type of provision Lending platforms Equity and/or Debt platforms Maximum amount of investment for 40.000 Euro 20.000 Euro consumers on the platform Maximum frequency
More informationValuation for lending purposes: Appraisal theory and practice in Germany and the United States
Valuation for lending purposes: Appraisal theory and practice in Germany and the United States International Conference on Collateral Risk: A Historical Perspective and German and United States Case Studies
More informationCentral Bank of Ireland Macro-prudential policy for residential mortgage lending Consultation Paper CP87
Central Bank of Ireland Macro-prudential policy for residential mortgage lending Consultation Paper CP87 An initial assessment from Genworth Financial The Central Bank ( CB ) published a consultation paper
More information4. The minimum amount of owners' equity in a bank mandated by regulators is called a requirement. A) reserve B) margin C) liquidity D) capital
Chapter 4 - Sample Questions 1. Quantitative easing is most closely akin to: A) discount lending. B) open-market operations. C) fractional-reserve banking. D) capital requirements. 2. Money market mutual
More informationMargin Trading. A. How Margin Works? B. Why Trading on Margin Can Be Very Risky and Is Not Suitable for Everyone? C. Conclusion
A. How Margin Works? B. Why Trading on Margin Can Be Very Risky and Is Not Suitable for Everyone? C. Conclusion 2 An investor who purchases securities may pay for the securities in full, from his own resources,
More informationVISUAL 1 TERMS OF MODERN FINANCIAL MARKETS
VISUAL 1 TERMS OF MODERN FINANCIAL MARKETS Instruments Asset-backed security Credit default swap Bond Common stock Mortgage-backed security Mutual fund Option Futures contract Subprime mortgage Institutions
More informationGlobal Insurance and Lending Market Data: Size, Segmentation and Forecast for Worldwide Markets
Global Insurance and Lending Market Data: Size, Segmentation and Forecast for Worldwide Markets Accident and health insurance commercial non-life insurance consumer lending life insurance and retirement
More information