Should Croatia develop its mortgage market? (CROSBI ID 663205)
Prilog sa skupa u časopisu | izvorni znanstveni rad | međunarodna recenzija
Podaci o odgovornosti
Buterin, Vesna ; Buterin, Denis ; Lukežić, Ester
engleski
Should Croatia develop its mortgage market?
Securitization of financial assets, as a relatively new financial product, is the process of transforming illiquid financial assets such as mortgages into securities traded on the capital market. Securitization has experienced a real boom in its application in the first decade of this century. Long-term credit mortgages with poor quality are grouped into bundles and converted into securities that are sold in the financial market. This creates a secondary mortgage market. The developed, regulated and standardized primary mortgage market is prerequisite for the development of the secondary mortgage market and securitization. Stimulating the approval of mortgage lending or risky products to less solvent parties is now considered to be the most important cause of speculation and inflow of the real estate market and consequently the emergence of the first global financial crisis of the 21st century. Because of the negative effects of globalization, the crisis has spread rapidly from the USA to the rest of the world and has produced negative effects, primarily in financial markets and then indirectly in other sectors of national economies. As far as Croatia is concerned, it can be said that the bank lending was the main instrument of financing in the Croatian market. Secondary financial markets have not really taken root in Croatia, and consequently nor securitization process. Also, in Croatia, the mortgage market is a relatively small market with a very small share of issued mortgage loans from total loans to households. Therefore, this paper examines the justification for encouraging the development of the mortgage market in Croatia. Taking into account the emergence of securitization as a result of the existence of a mortgage market as well as the explicit dominance of bank loans in the Croatian financial market, the authors find that there is no economic justification for that in a medium term. Instead, it is necessary to develop further the infrastructure and legislative framework in order to achieve greater investor safety. That would indirectly lead to achievement of greater liquidity and efficiency of the entire Croatian financial market.
mortgage market, mortgage loan, securitization, Croatia
Zbornik indeksiran u Web of Science, EBSCO, Thomson Reuters, EconPapers, ISSN 1848-9559
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Podaci o prilogu
960-968.
2018.
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objavljeno
Podaci o matičnoj publikaciji
Međunarodni znanstveni simpozij Gospodarstvo istočne Hrvatske – jučer, danas, sutra
Mašek, Tonković, A. ; Crnković B.
Osijek: Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku
1848-9559
Podaci o skupu
7. međunarodni znanstveni simpozij: Gospodarstvo istočne Hrvatske – vizija i razvoj
predavanje
24.05.2018-26.05.2018
Osijek, Hrvatska
Povezanost rada
Ekonomija