Real Estate Information Technology: Bank Lending, Real Estate Bubbles, and Basel II

Yannis Panagopoulos and Prodromos Vlamis

Journal of Real Estate Literature, 2009, vol. 17, issue 2, 293-310

Abstract: This paper reviews the literature and empirical work on how bank over-lending, property price bubbles, real estate company failures, and banking crises are intertwined. We refer to the old capital adequacy regulatory framework (Basel I) for banks and we illustrate the new one (Basel II). We critically discuss banking supervisors' views with specific reference to real estate lending. We argue that various quantitative regulations should be put forward by the supervisory authorities to ensure prudent lending practices regarding real estate sector. More specifically, rules can be imposed regarding the size of the loan-to-value ratios and the use of periodic and frequent property valuation. To the best of our knowledge, this is the first attempt to discuss and bring together the most recent developments in the bank regulation and the real estate cycles/bubbles literature.

Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2009.12090262 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rjelxx:v:17:y:2009:i:2:p:293-310

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjel20

DOI: 10.1080/10835547.2009.12090262

Access Statistics for this article

Journal of Real Estate Literature is currently edited by Sophia Dermisi and Kimberly Winson

More articles in Journal of Real Estate Literature from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().