TY - JOUR
T1 - Bank specialization, mortgage lending and house prices
AU - Dursun-de Neef, H. Özlem
N1 - Funding Information:
☆ I am grateful for valuable discussions and comments from Florian Balke, Ronel Elul, Zuzana Fungáčová, Thomas Gehrig, Pedro Gete, Martin Götz, Rainer Haselmann, Jean-Baptiste Hasse, Thomas Mosk, Vahid Saadi, Cristina Scherrer and Esther Segalla. I also would like to thank the participants at the 26th Annual Meeting of the German Finance Association (DGF), the 9th Workshop on “Banks and Financial Markets”, the International Banking, Economics and Finance Association (IBEFA) 2020 Summer Meetings (WEAI), the 37th International Conference of the French Finance Association (AFFI), the 2021 Financial Management Association (FMA) European Conference, the 2021 FMA Annual Meeting, and the seminar participants at the Federal Housing Finance Agency (FHFA), Goethe University Frankfurt, IE Business School, and Norwich Business School for helpful comments.
Publisher Copyright:
© 2023
PY - 2023/6
Y1 - 2023/6
N2 - This paper studies the link between banks’ geographic specialization and the growth in their mortgage lending. Specialized banks increase their lending relatively less during the boom (2004 - 2006) and they experience a lower reduction in their loans through the following bust (2007 - 2009). In the aggregate, bank specialization has an impact on the overall credit rather than a mere reallocation of lending: MSAs with a higher exposure to specialized banks experience less expansion and contraction in mortgages. As a result, higher bank specialization is associated with a less severe boom and bust cycle in house prices.
AB - This paper studies the link between banks’ geographic specialization and the growth in their mortgage lending. Specialized banks increase their lending relatively less during the boom (2004 - 2006) and they experience a lower reduction in their loans through the following bust (2007 - 2009). In the aggregate, bank specialization has an impact on the overall credit rather than a mere reallocation of lending: MSAs with a higher exposure to specialized banks experience less expansion and contraction in mortgages. As a result, higher bank specialization is associated with a less severe boom and bust cycle in house prices.
UR - http://www.scopus.com/inward/record.url?scp=85152692997&partnerID=8YFLogxK
U2 - 10.1016/j.jbankfin.2023.106836
DO - 10.1016/j.jbankfin.2023.106836
M3 - Article
AN - SCOPUS:85152692997
SN - 0378-4266
VL - 151
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
M1 - 106836
ER -