Mortgage Lending in Korea : An Example of a Countercyclical Macroprudential Approach

Chang, Soon-taek

dc.creator	Chang, Soon-taek
dc.date	2012-03-19T18:43:26Z
dc.date	2012-03-19T18:43:26Z
dc.date	2010-12-01
dc.date.accessioned	2023-02-17T21:07:11Z
dc.date.available	2023-02-17T21:07:11Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101214082720
dc.identifier	http://hdl.handle.net/10986/3989
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244959
dc.description	Regulatory regimes are actively discussing macroprudential policy. Korea pursued a countercyclical macroprudential approach to prevent the overheating of mortgage lending and to minimize the risk of loan default. The Korean financial supervisory authority made adjustments in response to both the condition of the housing market and trends in mortgage loans. The lessons learned from the Korean experience are applicable to other situations. First, regulations regarding loan-to-value and debt-to-income ratios and other restrictions on mortgage lending can be employed as an important part of a countercyclical framework. Next, measures need to be applied in a timely manner and according to the specific conditions of each country. Finally, authorities should preemptively prepare macroprudential instruments before banks enter a period of rapid mortgage lending to avoid reckless mortgage lending operations and weaken any speculative motive in the housing market.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5505
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCESS TO CREDIT
dc.subject	ACCESS TO FINANCING
dc.subject	ADMINISTRATIVE POWER
dc.subject	AMORTIZATION
dc.subject	AMORTIZATION SCHEDULE
dc.subject	AMOUNT OF LOAN
dc.subject	AMOUNT OF LOANS
dc.subject	ASSET CLASSIFICATION
dc.subject	ASSET PRICES
dc.subject	AUCTION
dc.subject	AUCTION PROCEDURES
dc.subject	BAD ASSETS
dc.subject	BALANCE SHEET
dc.subject	BANK ASSETS
dc.subject	BANK FINANCING
dc.subject	BANK FOR INTERNATIONAL SETTLEMENTS
dc.subject	BANK LENDING
dc.subject	BANK OF KOREA
dc.subject	BANK PROFITABILITY
dc.subject	BANKING INDUSTRY
dc.subject	BANKING REGULATION
dc.subject	BANKING SECTOR
dc.subject	BANKING SUPERVISION
dc.subject	BANKING SYSTEM
dc.subject	BANKRUPTCY
dc.subject	BANKS
dc.subject	BID
dc.subject	BORROWER
dc.subject	BORROWING
dc.subject	BORROWING COSTS
dc.subject	BUILDING BLOCK APPROACH
dc.subject	BUSINESS CYCLE
dc.subject	BUSINESS LOANS
dc.subject	CAPITAL ADEQUACY
dc.subject	CAPITAL ADEQUACY REQUIREMENTS
dc.subject	CAPITAL REQUIREMENT
dc.subject	CENTRAL BANK
dc.subject	COLLATERAL
dc.subject	COMMERCIAL BANKS
dc.subject	COMMUNITY CREDIT
dc.subject	CONSUMER LOANS
dc.subject	CREDIT ASSESSMENT
dc.subject	CREDIT CARD
dc.subject	CREDIT CARD ISSUERS
dc.subject	CREDIT CARD RECEIVABLES
dc.subject	CREDIT COOPERATIVES
dc.subject	CREDIT EXPANSION
dc.subject	CREDIT GROWTH
dc.subject	CREDIT HISTORY
dc.subject	CREDIT INFORMATION
dc.subject	CREDIT INFORMATION REGISTRY
dc.subject	CREDIT RATING
dc.subject	CREDIT RATINGS
dc.subject	CREDIT RISK
dc.subject	CREDIT RISKS
dc.subject	CREDIT UNIONS
dc.subject	CREDITOR
dc.subject	CREDITS
dc.subject	DEBT
dc.subject	DEBT BURDEN
dc.subject	DEBT OBLIGATIONS
dc.subject	DEBT REPAYMENT
dc.subject	DELINQUENCY RATE
dc.subject	DELINQUENCY RATES
dc.subject	DEPOSIT
dc.subject	DEPOSITS
dc.subject	DISCRETIONARY POWER
dc.subject	DISPOSITION
dc.subject	DOMESTIC BANKS
dc.subject	ECONOMIC CONDITIONS
dc.subject	ECONOMIC COOPERATION
dc.subject	ECONOMIC CRISIS
dc.subject	ECONOMIC DIFFICULTIES
dc.subject	ECONOMIC POLICIES
dc.subject	EXCLUSION
dc.subject	FINANCE COMPANIES
dc.subject	FINANCE CORPORATION
dc.subject	FINANCES
dc.subject	FINANCIAL CORPORATION
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DISTRESSES
dc.subject	FINANCIAL INSTABILITY
dc.subject	FINANCIAL INSTITUTION
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL MARKET
dc.subject	FINANCIAL REGULATION
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL STABILITY
dc.subject	FINANCIAL SYSTEM
dc.subject	FINANCIAL SYSTEMS
dc.subject	FISCAL POLICIES
dc.subject	FIXED INTEREST
dc.subject	FIXED INTEREST RATE
dc.subject	FIXED INTEREST RATES
dc.subject	GOVERNMENT INTERVENTION
dc.subject	GRACE PERIOD
dc.subject	HOLDING
dc.subject	HOME MORTGAGE
dc.subject	HOUSEHOLD DEBT
dc.subject	HOUSEHOLD LENDING
dc.subject	HOUSEHOLDS
dc.subject	HOUSES
dc.subject	HOUSING
dc.subject	HOUSING DEMAND
dc.subject	HOUSING FINANCE
dc.subject	HOUSING LOAN
dc.subject	HOUSING LOANS
dc.subject	HOUSING MARKETS
dc.subject	HOUSING POLICY
dc.subject	HOUSING PRICES
dc.subject	HOUSING SUPPLY
dc.subject	INCOME TAX
dc.subject	INDIVIDUAL CONSUMERS
dc.subject	INFLATION
dc.subject	INFORMATION SHARING
dc.subject	INJUNCTION
dc.subject	INSOLVENT
dc.subject	INSTALLMENT
dc.subject	INSTALLMENTS
dc.subject	INSTRUMENT
dc.subject	INSURANCE
dc.subject	INTEREST RATE RISK
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL SETTLEMENTS
dc.subject	INVESTING
dc.subject	JURISDICTION
dc.subject	LENDERS
dc.subject	LENDING INSTITUTIONS
dc.subject	LENDING LIMITS
dc.subject	LENDING POLICY
dc.subject	LEVEL OF RISK
dc.subject	LEVERAGE
dc.subject	LIQUIDITY
dc.subject	LOAN
dc.subject	LOAN ACCOUNT
dc.subject	LOAN AGREEMENT
dc.subject	LOAN AMOUNT
dc.subject	LOAN APPLICATION
dc.subject	LOAN DEFAULT
dc.subject	LOAN DEFAULTS
dc.subject	LOAN LOSS
dc.subject	LOAN LOSS PROVISIONING
dc.subject	LOAN LOSS PROVISIONS
dc.subject	LOAN LOSSES
dc.subject	LOAN MATURITY
dc.subject	LOAN OBLIGATIONS
dc.subject	LOAN PAYMENTS
dc.subject	LOAN QUALITY
dc.subject	LOAN REVIEWS
dc.subject	LOAN SERVICING
dc.subject	LOW INTEREST RATE
dc.subject	LOW INTEREST RATES
dc.subject	LOWER-INCOME BORROWERS
dc.subject	MACROECONOMIC INSTABILITY
dc.subject	MACROECONOMIC POLICY
dc.subject	MARGIN REQUIREMENTS
dc.subject	MARKET CONDITION
dc.subject	MARKET INSTABILITY
dc.subject	MARKET PRICE
dc.subject	MARKET SHARE
dc.subject	MARKET STRUCTURE
dc.subject	MATURITIES
dc.subject	MATURITY
dc.subject	MATURITY EXTENSION
dc.subject	MATURITY RESTRICTION
dc.subject	MATURITY STRUCTURE
dc.subject	METROPOLITAN AREAS
dc.subject	MONETARY FUND
dc.subject	MONETARY POLICY
dc.subject	MORTGAGE
dc.subject	MORTGAGE APPLICATIONS
dc.subject	MORTGAGE CREDIT
dc.subject	MORTGAGE DEBT
dc.subject	MORTGAGE LENDING
dc.subject	MORTGAGE LOAN
dc.subject	MORTGAGE LOANS
dc.subject	MORTGAGE MARKET
dc.subject	MORTGAGE PRODUCTS
dc.subject	MORTGAGE SERVICING
dc.subject	MORTGAGES
dc.subject	MUTUAL SAVINGS
dc.subject	MUTUAL SAVINGS BANKS
dc.subject	NATURAL DISASTER
dc.subject	NON-PERFORMING LOANS
dc.subject	OIL PRICES
dc.subject	OUTSTANDING LOANS
dc.subject	OVERSIGHT OF BANK
dc.subject	PERSONAL CREDIT
dc.subject	POLICY RESPONSE
dc.subject	POSTAL SAVINGS
dc.subject	PRIVATIZATION
dc.subject	PROFITABILITY
dc.subject	PROPERTY TAX
dc.subject	PROVISIONING RULES
dc.subject	PUBLIC CREDIT
dc.subject	REAL ESTATE
dc.subject	REAL PROPERTIES
dc.subject	REAL PROPERTY
dc.subject	RECESSION
dc.subject	REDEMPTION
dc.subject	REGISTRATION OF TITLE
dc.subject	REGISTRY OFFICE
dc.subject	REGULATORY REGIMES
dc.subject	REMEDY
dc.subject	RESERVE
dc.subject	RESERVE RATIOS
dc.subject	RESERVES
dc.subject	RESIDENTIAL MORTGAGE
dc.subject	RISK MANAGEMENT
dc.subject	RISK OF LOAN
dc.subject	SAVINGS
dc.subject	SAVINGS BANK
dc.subject	SAVINGS BANKS
dc.subject	SECOND MORTGAGE
dc.subject	SECURITIES
dc.subject	SECURITIZATION
dc.subject	SEIZURE
dc.subject	SINGLE BORROWER
dc.subject	SUPERVISORY AUTHORITY
dc.subject	TAX BURDEN
dc.subject	TAX SYSTEM
dc.subject	TIME OF MATURITY
dc.subject	TITLE
dc.subject	TRANSFER OF OWNERSHIP
dc.subject	TRANSPORT
dc.subject	VALUE OF COLLATERAL
dc.title	Mortgage Lending in Korea : An Example of a Countercyclical Macroprudential Approach
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	East Asia and Pacific
dc.coverage	East Asia and Pacific
dc.coverage	East Asia
dc.coverage	Asia
dc.coverage	Korea, Republic of