Mortgage Credit (Loans and Bonds) Bill 2012

26 Pages Posted: 16 Jun 2013

See all articles by Charles James Larkin

Charles James Larkin

Institute for Policy Research (IPR), University of Bath; Trinity College Dublin

Sean Barrett

Trinity College (Dublin) - Department of Economics

Date Written: October 15, 2012

Abstract

The Danish mortgage banking model was created in 1797 with the Kreditkassen following the 1795 Great Fire in Copenhagen which destroyed a large proportion of the city and left many homeless and created an instant and wide-ranging demand for housing. In order to meet this demand a pooling system was designed to obtain the necessary level of capital at a reasonable rate. Though bubbles were not entirely prevented throughout the history of the Danish system it is extremely robust and has acted as a moderating influence on the housing market in Denmark.

The aim of this process is to provide capital to allow the housing and banking markets to mend. The Irish banking sector continues to mend its balance-sheets. That places a priority on banks having large capital backstops and limiting lending to the wider economy. The continued concerns about existing mortgage arrears and the recession-reduced household disposable incomes available to serve mortgages that are currently being serviced weighs heavily on the banks with respect to their lending decisions.

Keywords: Mortgages, Bonds, Credit control, Housing finance, Bank regulation

Suggested Citation

Larkin, Charles James and Barrett, Sean, Mortgage Credit (Loans and Bonds) Bill 2012 (October 15, 2012). Available at SSRN: https://ssrn.com/abstract=2279436 or http://dx.doi.org/10.2139/ssrn.2279436

Charles James Larkin (Contact Author)

Institute for Policy Research (IPR), University of Bath ( email )

10 West
Claverton Down
Bath, BA2 7AY
United Kingdom

Trinity College Dublin ( email )

AAP College Green
Dublin 2
Ireland

Sean Barrett

Trinity College (Dublin) - Department of Economics ( email )

Dublin 2
Ireland

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