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 pol...
| Main Author: | |
|---|---|
| Format: | Other Financial Sector Study |
| Language: | English en_US |
| Published: |
Washington, DC
2014
|
| Subjects: | |
| 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 |
| Summary: | 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. |
|---|