Ramadorai, Tarun, Campbell, John and Ranish, Ben (2013) How Do Regulators Influence Mortgage Risk? Evidence from an Emerging Market. University of Oxford.
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We employ loan-level data on over a million loans disbursed in India between 1995 and 2010 to understand how fast-changing regulation impacted mortgage lending and risk. Our methodology offers an alternative to regression discontinuity analysis that applies even when regulations create no discontinuities in the cross-section. We use cross-sectional differences in the time-series variation of delinquency rates, conditional on initial interest rates, to detect the effects of regulations favoring smaller loans. We also find that a change in the classification of non-performing assets reduced both delinquency probabilities and losses given delinquency.
|Item Type:||Other Working Paper|
|Keywords:||mortgage lending; India|
|Centre:||Faculty of Finance|
|Date Deposited:||23 Sep 2013 10:00|
|Last Modified:||23 Oct 2015 14:08|
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