Housing prices and household borrowing are expected to be tightly connected to each other. Better availability of credit eases liquidity constraints of households, which is likely to lead to higher demand for housing. On the other hand, housing prices may significantly influence household...

This study provides new evidence on the heterogeneous effect of housing price changes on the performance of Korean commercial, regional, and specialized banks. We find that housing price fluctuations do not have a significant effect on Korean regional banks’ lending growth, but have a...