Shadow banking in Asia: Foreign versus domestic lending to real estate projects

Douglas Cumming, Grant Fleming and Liu, Zhangxin (Frank)

Emerging Markets Review, 2018, vol. 35, issue C, 137-147

Abstract: We compare the types of loans and their rates of returns for domestic versus offshore small and mid-sized private real estate credit funds. The data indicate offshore private credit funds issue smaller and subordinated loans to residential projects. Offshore lenders prefer projects in developed Asian markets, and obtain higher rates of return even after controlling for other things such as loan size, seniority, and borrower location. Our findings suggest the presence of pronounced segmentation across real estate lending markets in Asia as offshore lenders are not a substitute for domestic capital.

Keywords: Private debt; Shadow banking; Real estate; Performance; Alternative assets (search for similar items in EconPapers)
JEL-codes: G15 G23 G24 O16 R39 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:35:y:2018:i:c:p:137-147

DOI: 10.1016/j.ememar.2018.02.007

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