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Int. J. Financial Stud. 2018, 6(2), 50;

Housing, Housing Finance and Credit Risk

Department of Economics and Statistics, University of Turin, Lungo Dora Siena 100 A, 10153 Turin, Italy
Department of Economics, University of Reading, Reading, Berkshire RG6 6AH, UK
Author to whom correspondence should be addressed.
Received: 20 December 2017 / Revised: 16 April 2018 / Accepted: 2 May 2018 / Published: 9 May 2018
(This article belongs to the Special Issue Real Estate Finance)
Full-Text   |   PDF [489 KB, uploaded 10 May 2018]   |  


This paper investigates the determinants of credit risk from a broad perspective. Particular attention is given to the role of housing affordability and household indebtedness. However, the impact of credit market developments and regulations is also closely examined. Using a large panel of countries it is found that housing affordability and household fragility significantly affect the risk of banks’ loan portfolios. In addition, an analysis of the conditional quantiles of non-performing loan ratios reveals that financial institutions in countries with greater levels of financial liberalization and less regulated markets also experience greater credit risk. View Full-Text
Keywords: credit risk; housing affordability; household indebtedness; housing finance credit risk; housing affordability; household indebtedness; housing finance

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Canepa, A.; Khaled, F. Housing, Housing Finance and Credit Risk. Int. J. Financial Stud. 2018, 6, 50.

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