Mortgage Liquidity Facilities
This note brings together some of the policy lessons learnt in the creation of mortgage liquidity facilities around the world. It looks at the main benefits which can be derived from the creation of a mortgage liquidity facility and the conditions...
| Main Authors: | , |
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/01/16388290/mortgage-liquidity-facilities http://hdl.handle.net/10986/18372 |
| Summary: | This note brings together some of the
policy lessons learnt in the creation of mortgage liquidity
facilities around the world. It looks at the main benefits
which can be derived from the creation of a mortgage
liquidity facility and the conditions under which they can
operate most effectively. The note details some of the
pre-conditions necessary for the creation of a liquidity
facility. There is summary of some of the key techniques
used in obtaining security over the mortgage collateral.
Lastly two important aspects which are crucial to building
confidence in mortgage liquidity facilities are how they are
regulated and their corporate governance. The note brings in
relevant examples from liquidity facilities which have been
set up as far back as 1987 (Malaysia), from developed
countries (France) and from facilities still under
discussion (West Africa). Overall the note points to the
valuable developmental role that mortgage liquidity
facilities can play in nascent mortgage markets as an
intermediary between capital markets in the primary mortgage
markets. This is especially the case in markets where the
mortgage lending infra-structure and environment have not
developed sufficiently to allow for other more sophisticated
alternatives such as securitization or covered bonds. |
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