Naslov
Should Croatia develop its mortgage market?

Autori
Buterin, Vesna ; Buterin, Denis ; Lukežić, Ester

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
7th International Scientific Symposium "Economy of Eastern Croatia - Vision and Growth" / Mašek, Tonković, A. ; Crnković B. - Osijek : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2018, 960-968

Skup
7. međunarodni znanstveni simpozij: Gospodarstvo istočne Hrvatske – vizija i razvoj = 7th International Scientific Symposium: Economy of Eastern Croatia – Vision and Growth

Mjesto i datum
Osijek, Hrvatska, 24.05.2018. - 26.05.2018

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
mortgage market, mortgage loan, securitization, Croatia

Sažetak
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.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
Zbornik indeksiran u Web of Science, EBSCO, Thomson
Reuters, EconPapers, ISSN 1848-9559

POVEZANOST RADA