Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287167 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Financial Services Research [ISSN:] 1573-0735 [Volume:] 62 [Issue:] 1-2 [Publisher:] Springer US [Place:] New York, NY [Year:] 2021 [Pages:] 27-59
Publisher: 
Springer US, New York, NY
Abstract: 
Real estate price growth affects credit risk for several reasons: it provides input for economic forecasts as it's closely tied to economic growth; when used as collateral by banks, rising real estate prices may decrease both expected and actual losses; and banks may become less risk averse in lending practices in the presence of rising property prices. Therefore, we analyze these effects on loan portfolios' estimated and realized risks on a local level. Using data of 390 German savings banks, however, we find that real estate prices have little or no impact onĀ savings banks' credit portfolio risk or risk precautions.
Subjects: 
Lending risk
Regional banks
Collateral
Real estate markets
JEL: 
G21
G32
G11
R31
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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