Published March 5, 2015 | Version 10000877
Journal article Open

Housing Loans Determinants before and during Financial Crisis

Description

Housing loans play an important role in CEE
countries’ economies. This fact is based on their share in total loans
to households and their importance for economic activity and growth
in CEE countries. Therefore, it is important to find out key
determinants of housing loans demand in these countries. The aim of
this study is to research and analyze the determinants of the demand
for housing loans in Croatia. In this regard, the effect of economic
activity, loan terms and real estate prices were analyzed. Also, the
aim of this study is to find out what motivates people to take housing
loans. Therefore, primarily empirical study was conducted among the
Croatian residents. The results show that demand for housing loans is
positively affected by economic growth, higher personal income and
flexible loan terms, while it is negatively affected by interest rate rise.

Files

10000877.pdf

Files (228.8 kB)

Name Size Download all
md5:9dc9274d37cee1c2b3245b029e450f96
228.8 kB Preview Download

Additional details

References

  • Z. Walko, "Housing Loan Developments in the Central and Eastern European EU Member States", OENB, 2008. p. 78.
  • D. Mihaljek, "Rapid Growth of Bank Credit in Central and Eastern Europe: the Role of Housing Markets and Foreign Owned Banks", HNB, Dubrovnik, 2006, p. 5.
  • B. Égert, and D. Mihaljek, "Determinants of house prices in central and eastern Europe", BIS Working Papers No 236, BIS, 2007, p. 5.
  • B. Égert, P. Backe, and T. Zumer, "Credit growth in Central and Eastern Europe, New (over)shooting stars?", Working paper No. 687., European Central Bank, Frankfurt, 2006, p. 8.
  • Raiffeisen Research Report, "CEE Banking sector report, Performing in challenging times", Raiffeisen Bank, Wien, 2012. p. 18.
  • M.M.G. Fase, P. Kramer, and W.C. Boeschoten, "De Nederlandsche Bank's quarterly model of the Netherlands economy", Economic Modelling 9, 1992, pp. 146-204.
  • M.M.G. Fase, "The Demand for Commercial Bank Loans and the Lending Rate", European Economic Review 39, 1995, pp. 99-115.
  • M. Manrique, and F. Sáez, "Una análisis desagregado de la demanda de activos líquidos y de la demanda de crédito de las familias y de las empresas no financieras", Boletín Económico No. 1, Banco De España, Madrid, 1998, pp. 51-71.
  • B. Hofmann, "The Determinants of Private Sector Credit in Industrialised Countries: Do Property Prices Matter?" BIS Working Paper No. 108, Basel, 2008. [10] A. Calza, C. Gartner, and J. Sousa, "Modelling the demand for loans to the private sector in the Euro area", Working Paper No. 55, European Central Bank, Frankfurt, 2001. [11] I. Ljubaj, K. Gattin-Turkalj, A. Martinis, and M. Mrkalj, "Estimating credit demand in Croatia", Hrvatska narodna banka, Zagreb, 2007, p. 21. [12] V. Šonje, "Estimating demand for household credit in Croatia", Croatia Securitization Draft, RIA, Part II: Quantitative Impact Assesment, Annex 3, 2006, p.110. [13] C. Goodhart, and B. Hofmann, "House prices, money, credit and the macroeconomy", Working paper No. 888, European Central Bank, Frankfurt, 2008. [14] M. Vizek, "Priuštivost stanovanja u Hrvatskoj i odabranim europskim zemljama", Revija za socijalnu politiku 16, Ekonomski institut Zagreb, Zagreb, 2009, p. 289. [15] HNB, "Financijska stabilnost", Issue 12, Croatian National Bank, Zagreb, 2014. [16] HNB, "Godišnje izvješće 2012", Croatian National Bank, Zagreb, 2012.