publication . Preprint . 2003

Bank Lending and Property Prices in Hong Kong

Stefan Gerlach; Wensheng Peng;
Open Access
  • Published: 01 Jun 2003
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 can not 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.
Subjects
free text keywords: bank lending; Hong Kong; property prices, Property prices, bank lending, Hong Kong, jel:E32, jel:E42, jel:G21
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publication . Preprint . 2003

Bank Lending and Property Prices in Hong Kong

Stefan Gerlach; Wensheng Peng;