We show how price leadership bans, imposed as part of the European Commission's State aid control on all main mortgage providers except the largest bank, shifted the Dutch mortgage market from a competitive to a collusive price leadership equilibrium. In May 2009, mortgage rates in the...

In this paper we reconstruct the way in which the Netherlands Competition Authority (NMa) estimated monthly profit margins on different types of Dutch mortgages in its Mortgage Market Sector Study published May 2011. These margin series are then extended and consistently updated until July 2012....

We analyse the development since 2004 of our concept of extra-margins on Dutch mortgages (Dijkstra & Schinkel, 2012), based on funding cost estimations in ACM (2013), which are an update of those in NMa (2011). Neither costs related to increased mortgage-specific risks, nor the inclusion of...