Bank Real Estate Lending and the New England Capital Crunch
The stock of real estate loans held by New England banks has declined dramatically. Given the limited potential for real estate investments, weak demand for real estate loans is to be expected. However, supply as well as demand factors may account for some of the decline in bank real estate loans. This paper documents that bank lending for real estate may have been constrained by a capital crunch, whereby poorly capitalized banks shrank their assets, including real estate loans, to satisfy capital requirements. Because the loss of bank capital is so widespread in New England, bank-dependent borrowers may have difficulty obtaining real estate financing. Copyright American Real Estate and Urban Economics Association.
Year of publication: |
1994
|
---|---|
Authors: | Peek, Joe ; Rosengren, Eric S. |
Published in: |
Real Estate Economics. - American Real Estate and Urban Economics Association - AREUEA. - Vol. 22.1994, 1, p. 33-58
|
Publisher: |
American Real Estate and Urban Economics Association - AREUEA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The role of banks in the transmission of monetary policy
Peek, Joe, (2013)
-
Does Fed policy reveal a ternary mandate?
Peek, Joe, (2016)
-
Bank regulation and the credit crunch
Peek, Joe, (1993)
- More ...