Arbeitspapier
Higher bank capital requirements and mortgage pricing: Evidence from the Counter-Cyclical Capital Buffer
We examine mortgage pricing before and after Switzerland was the first country to activate the Counter-Cyclical Capital Buffer of Basel III. Observing multiple mortgage offers per request, we obtain three core findings. First, capitalconstrained and mortgage-specialized banks raise their rates relatively more. Second, risk-weighting schemes supposed to discriminate against more risky borrowers do not amplify the effect of higher capital requirements. Third, CCBsubjected banks and CCB-exempt insurers raise mortgage rates, but insurers raise rates by on average 8.8 bp more. To conclude, lenders welcome the opportunity to increase mortgage rates, but stricter capital requirements do not discourage banks from risky mortgage lending.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 169
- Klassifikation
-
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Money Supply; Credit; Money Multipliers
- Thema
-
Bank Lending
Mortgage Market
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Basten, Christoph
Koch, Catherine
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Zurich, Department of Economics
- (wo)
-
Zurich
- (wann)
-
2014
- DOI
-
doi:10.5167/uzh-97831
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Basten, Christoph
- Koch, Catherine
- University of Zurich, Department of Economics
Entstanden
- 2014
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