The Effectiveness Of Home Lending - A Cross Country Analysis With Special Regards To The Hungarian Experiences

Abstract

Against the overall process of amalgamating financial markets, the home lending markets show significant differences among EU countries. These differences were created by domestic regulation, historical tradition, various cultural patterns. This paper is devoted to examine the consequences of this differences and to link this consequences to the risk management of special home lending institutions. I compared the figures of developed countries with the Hungarian ones to highlight the differences created by the level of development. I stated that the greater is the level of securisation of home loan financing and the closer is the home lending system; the bigger is the importance of home lending in the domestic economy and the more favourable are the credit conditions.