How Do Regulators Influence Mortgage Risk? Evidence from an Emerging Market

John Campbell and Benjamin Ranish
Authors registered in the RePEc Author Service: Tarun Ramadorai

No 9136, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: To understand the effects of regulation on mortgage risk, it is instructive to track the history of regulatory changes in a country rather than to rely entirely on cross-country evidence that can be contaminated by unobserved heterogeneity. However, in developed countries with fairly stable systems of financial regulation, it is difficult to track these effects. We employ loan-level data on over a million loans disbursed in India over the 1995 to 2010 period to understand how fast-changing regulation impacted mortgage lending and risk. We find evidence that regulation has important effects on mortgage rates and delinquencies in both the time-series and the cross-section.

Keywords: Delinquencies; Emerging markets; India; Mortgage finance; Regulation (search for similar items in EconPapers)
JEL-codes: G21 G28 R21 R31 (search for similar items in EconPapers)
Date: 2012-09
New Economics Papers: this item is included in nep-ban, nep-cba, nep-rmg and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Working Paper: How Do Regulators Influence Mortgage Risk: Evidence from an Emerging Market (2012)
Working Paper: How Do Regulators Influence Mortgage Risk: Evidence from an Emerging Market (2012)
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