Are The Effect of Housing Prices on Bank Performance Different Among Korean Commercial, Regional and Specialized Banks?

Author:

Heonyong Jung1

Affiliation:

1. College of Business & Public Administration , Namseoul University , Korea

Abstract

Abstract This study analyzes the effect of housing prices on banking performance in Korea. The findings of the study reveal that the impact of housing price changes on banking performance was different in the commercial banks, regional banks and specialized banks. This seems to be due to the different characteristics of each bank. The three types of banks in Korea have different functions, and thus the impact of changes in housing prices on their respective banking performance is different. Therefore, it would be desirable for Korea’s financial regulatory authorities to draw up policies and perform its supervisory functions in consideration of these points.

Publisher

Walter de Gruyter GmbH

Subject

Economics, Econometrics and Finance (miscellaneous),Business, Management and Accounting (miscellaneous),Social Psychology

Reference11 articles.

1. Banai, Á and Vágó, N. (2018). The effect of house prices on bank risk: Empirical evidence from Hungary, NPB Working Paper No. 289, Narodowy Bank Polski, Economic Research Department.

2. Che, X., Li, B., Guo, K, and Wang, J. (2011). Property prices and bank lending: Some evidence from China’s regional financial centers, Procedia Computer Science, 4, pp. 1660-1667.

3. Choi, E. Y., Koh, S. S., and Hawang, H. D. (2011). An analysis of the effect of change real estate prices on the bank, Housing Studies Review, 19, pp. 101-121.

4. Cloyne, J., Hiber, K., Ilzetzki, E., and Kleven, H. (2019). The effect of house prices on household borrowing: A new approach, American Economic Review, 109, pp. 2104-2136.

5. Goodhart, C. and Hofmann, B. (2008). House prices, money, credit and the macroeconomy, Oxford Review of Economic Policy, 24, pp. 180-205.

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