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The article aims to analyse housing finance efficiency in the Czech Republic, especially so called 'intermediation efficiency'. 'Intermediation efficiency' applies to a set of institutional factors, risks (such as interest rate, credit and liquidity risks), government subsidies and legislative conditions that affect the cost of intermediating housi...
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Capital stability of the banking system is the basis of its effective development and realization of its main function – optimal redistribution of capital. So, the aim of the article is to develop indicators of capital stability of the banking system, and to propose the frameworks for the long term capital stability strategy of the banking system i...
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... In the former, housing construction and housing allocation to consumers are controlled by state institutions (Gentile & Sjöberg, 2010). In the latter, particularly in China, state involvement in housing construction has declined sharply, and private housing development companies began to emerge rapidly after the breakdown of the central planning system (Herbst & Muziol-Weclawowicz, 1993;Petrović, 2001;Sunega & Lux, 2007). However, housing construction is still affected by the legacy of the socialist era (Gentile & Sjöberg, 2010). ...
This paper investigates the equilibrium adjustment mechanism of new housing construction in urban China after the 1998 housing market reform. This analysis is based on a panel of 35 metropolitan areas over the period 2001–2015. The new housing supply function is specified in terms of changes rather than levels to capture the disequilibrium state of the Chinese housing market. In addition, current, one-year and two-year lags of the controls are used to capture the impact of the state control of construction land permits (Land Regulation Act). The main outcome is that new housing construction in the metropolitan areas under study responded to market signals but with relatively long time lags. In particular, during the period 2007–2015, new housing construction positively responded to the one-year and two-year lagged changes in housing prices and construction land supply, negatively responded to the current, one-year and two-year lagged changes in the interest rate, and negatively responded to the one-year lagged changes in construction material costs. The main conclusion is that China’s housing marketization has started to work, although it is still subject to its historical footprints and typical Chinese characteristics, notably state control of the construction land supply.
... 9See also "Key figures 2012," European Mortgage Federation, Online, at http://www.hypo.org/Content/ default.asp?PageID=414 (last accessed on January 14, 2017) andBloze (2009);Dübel, Brzeski, and Hamilton (2006); andSunega and Lux (2007).10In the Czech Republic, municipalities could also privatize directly to individual tenants. ...
Homeownership is believed to cause higher unemployment. This is because homeowners face higher mobility costs that limit their job search to local labor markets. Empirical tests of this prediction have yielded mixed results so far, possibly due to the endogeneity of homeownership. This paper proposes that the privatization of public housing in Central and Eastern Europe after the fall of the Iron Curtain was a substantial policy shock that generated largely exogenous assignment of homeownership to individual households. This facilitates a new test of the effects of homeownership on mobility and unemployment: First, our empirical results do not reject that homeownership reduces mobility. Second, our results are inconsistent with homeownership increasing unemployment.
... The results for the period 2005-2008 found the banking sector in the Czech Republic the most efficient. Sunega and Lux (2007), on the Czech mortgage market state that "the high degree of concentration does not have to be necessarily a sign of inefficiency; and that . . . the relatively high degree of competitiveness of mortgage lenders (proved by low and decreasing margins, growing product complexity and increased both maximum and average LTV) is employed only on recruitment of new clients", and this can also be stated about banks in Slovakia in the comparable period. ...
Mortgage banking began to develop in Slovakia after 1998 as an ambitious project, the goal of which was to elevate the lagging development of the real estate market, the development of the financial market and the creation of banks’ long-term resources. Our goal is a comprehensive assessment of the development of Slovak mortgage banking for the past 20 years from the perspectives of the development of banking, the mortgage bond market, the real estate market and selected interactions between individual elements of the mortgage system. The specific aim of the study is to evaluate the substantial links between the basic economic indicators, indicators of housing finance and real estate prices in Slovakia. To evaluate these issues VAR (Vector Autoregression) models, models of panel and linear regression and DEA (Data Envelopment Analysis) models were used. Slovakia has specific indicators of the development of mortgage banking, adequate to its historical and economic development. It was confirmed that the availability of real estate loans had a significant impact on the increase in real estate prices. Real estate prices in Bratislava have different development factors than real estate prices from a nationwide perspective. Low interest rates have an important role in housing financing. The second part of the study is oriented towards an evaluation of the technical efficiency of individual banks. The results of DEA point out that the largest banks in Slovakia were the most efficient in the pre-crisis year 2007. The overall results show that policymakers should react not only to the household indebtedness rate and risks for individual clients, but should also see the risks for banks in possible changes in the real estate market, or the risks of changes in interest rates in the future.
... The mortgage market is relatively developed when compared to other post-socialist countries (Sunega, Lux 2007;Lunde, Whitehead 2016). The outstanding residential mortgage debt was 21.3% of GDP in 2015, while in 1997, just 17 years earlier, it was zero. ...
In the Czech Republic, buying housing is regarded as a way of attaining financial security in old age. People are, however, wary about using Housing-Asset-Based Welfare instruments that would allow them to withdraw housing equity. This article explains the contradictions surrounding housing-equity release in the post-socialist context and the barriers and catalyst behind the wider use of two specific instruments – reverse mortgages and reverse schemes. The paper focuses on the generation of Czechs in their forties and fifties. Members of this generation have largely remained outside the scope of research, even though they will be impacted much more by the effects of population ageing than the current generation of seniors. The paper draws on a survey of a sample of the total Czech population and in-depth interviews and focus groups with people between the ages of 40 and 55 in three Czech municipalities. The research showed that, without the introduction of strong incentives, Czechs, despite their worries, are not likely to start accumulating savings more than they do today. They view owner-occupied housing as a secure form of housing in which it is possible to save on housing costs but do not regard it as property whose value could be used to increase their quality of life in old age.
... Financing efficiency is a key index to estimate an enterprises' efficiency of using their funds. From the literature, we note that the research on the enterprises' financing efficiency can be divided into three perspectives including regions [13,14], industries [15][16][17], and capital market [18,19]. Geng et al. [13] evaluated the financing efficiency of listed companies of machinery manufacturing industry in Jiangsu based on the Malmquist index model. ...
Agricultural enterprises play a significant role in China’s economic development. However, compared with other enterprises, agricultural enterprises are facing serious financial problems. Financing difficulty is essentially a question of financing efficiency. Based on the DEA method, this paper evaluates the financing efficiency of 39 agricultural listed companies in China from 2013 to 2017. The results suggest that the financing efficiency is generally low, and the Total Factor Productivity of agricultural enterprises’ financing has a tendency to decrease first and then increase. The influencing factors of financing efficiency are analyzed using the Tobit regression model and the random forest regression model. And we find the following: (1) The random forest regression model significantly outperformed the Tobit regression model, with determination coefficients (R ² ) greater than 0.9 in full sample sets. (2) Total liability, financial expenses, return on total assets, and inventory turnover rate are important factors affecting financing efficiency of agricultural listed companies. (3) Return on total assets and inventory turnover rate promote the financing efficiency, while total liability and financial expenses reduce financing efficiency. Finally, the paper makes some suggestions for the financing of agricultural enterprises.
... Members of housing co-ops are able to sell their user right to a co-op dwelling on the free market with no restrictions attached to doing so; and the price of a co-op flat is only slightly lower than that of an owner-occupied flat with similar attributes. The mortgage market is relatively developed when compared to mortgage markets in other post-socialist countries (Sunega, Lux 2007;Lunde, Whitehead 2016); the outstanding residential mortgage debt was 21.3% of GDP in 2015, while in 1997, just 17 years earlier, was zero. Despite this, it is estimated that about one-quarter of homes are purchased without a mortgage, and at the end of 2015 the loan-to-value ratio was just 56% (Hypostat 2016). ...
Using a representative survey of the Czech population, we demonstrate that intergenerational within-family financial (wealth) transfers represent the main mechanism in the reproduction of homeownership in Czech post-socialist society. The provision of a transfer or the lack of one largely determines the housing tenure of Czech young adults. Without transfers, the children of homeowners are significantly less likely to also become homeowners. We also show that the probability of an adult child receiving a transfer and the size of the transfer are closely linked (a) to the adult child’s within-family socialisation and (b) to the fact of whether the parents had also received a transfer from their parents in the past and how large that transfer was. These findings have important implications for how housing markets operate and for social inequalities. For example, if an established history of within-family transfers is a predictor of homeownership in future cohorts, this may mean that an important part of society will be systemically and predictably excluded from access to homeownership and a fixed axis of reproduced housing wealth inequality may form.
... 'innovative' mortgage products of the boom period (see Sunega and Lux 2007) quickly disappeared from the market, although formally banks continued to offer these products to customers. Owing to liquidity constraints there was a real danger of a run on Czech banks. ...
... The rise in house prices was partly a reflection of the low price take-off point (determined by the policy of cheap housing during the socialist period) and high inflation rate during early transition period, but the growth in house prices even outran the rise in inflation and household incomes (Lux et al., 2008). Given that the mortgage market emerged only in 2004, and even though the competition in the market rapidly made it highly effective and gave rise to a wide product range (Sunega and Lux, 2007), the total household mortgage debt was still low compared to advanced countries. The positive development engendered the notion among the population that flat prices would continue to rise continuously and that housing was a profitable investment. ...
The article attempts to answer the question about the future of housing system in the Czech Republic. As other transition countries, the Czech Republic underwent the substantial reform of housing system leading to the change in tenure structure in favour of owner-occupied housing. The authors discuss the basis and implicit aspects of tenure reform. The change in tenure structure was more gradual than in most other transition countries and together with other specific conditions it gave the chance to rental housing becoming a real alternative to homeownership tenure in the future. Using the results from several attitude surveys and unique experiment, the authors tried to find out whether there is any chance of deviating from the path leading towards a housing system unilaterally based on homeownership tenure. The empirical results, however, show that people’s tenure preferences remain strongly skewed in favour of owner-occupation.
Homeownership is believed to cause higher unemployment. This is because homeowners face higher mobility costs that limit their job search to local labour markets. Empirical tests of this prediction have yielded mixed results so far, possibly due to the endogeneity of homeownership. This paper documents that the privatisation of public housing in Central and Eastern Europe after the fall of the Iron Curtain resulted in a quasi-experimental assignment of homeownership to individual households. This facilitates a new test of the effects of homeownership on mobility and unemployment. We find only weak evidence that homeowners are less willing to move and no evidence of higher unemployment risks relative to renters.
The growth in the share of owner-occupied housing after 1990 in the Czech Republic was stimulated by the introduction of market-based financial instruments – namely a housing savings scheme and mortgage financing. Three stages in the development of market-based housing finance can be identified: a period of transformation and the establishment of new rules of the game (1990–2000); a period of economic, housing and mortgage boom (2001–2008); and a period of decline and housing market crisis (2009–2013). Compared to other countries, the development of the housing finance system in the Czech Republic was influenced by the traditionally high propensity of the Czech population to save, resulting in a relatively stable macro-economic performance and mortgage debt, which consisted mostly of fixed-rate mortgages, denominated in local currency. These conditions helped the country to weather the decline in the housing market during the recent global economic crisis with no major harm to the financial sector.
