Bank Lending and Property Prices in Hong Kong

Stefan Gerlach () and Wensheng Peng

No 4797, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This Paper studies the relationship between residential property prices and lending in Hong Kong. This is an interesting topic for three reasons. First, swings in property prices have been extremely large and frequent in Hong Kong. Second, under the currency board regime, monetary policy cannot be used to guard against asset price swings. Third, despite the collapse in property prices since 1998, the banking sector remains sound. While the contemporaneous correlation between lending and property prices is large, our results suggest that the direction of influence goes from property prices to bank credit rather than conversely.

Keywords: Property prices; Bank lending; Hong kong (search for similar items in EconPapers)
JEL-codes: E32 E42 G21 (search for similar items in EconPapers)
Date: 2004-12
New Economics Papers: this item is included in nep-fin, nep-fmk, nep-mac, nep-sea and nep-ure
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Bank lending and property prices in Hong Kong (2005)
Working Paper: Bank Lending and Property Prices in Hong Kong (2003)
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