Housing and mortgage loans' impact on the business performance of the banking sector
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| Format: | Thesis |
| Kulcsszavak: | banking crisis effect cyclical loans non-performing loans real estate |
| Online Access: | http://dolgozattar.uni-bge.hu/38734 |
| Abstract: | Banks are the most significant financial entities in the modern world. Financial sector insecurity adds to global instability. The consequences of the 2008 global financial crisis may still be felt today.Several thinkers have explored the impact of cyclical shifts on the economy throughout history. Despite differing thoughts and theses, they have all considered them critical factors influencing all market participants' financial stability. Banking activities are pro-cyclical, according to the assessment of the correlation coefficient between credit placements and the fraction of non-performing loans.During a crisis, all levels of banking activity fall. Banks are tightening business norms and processes to ensure safer operations, leading to a decrease in the number of bank loans given.The inability to repay the loan according to the terms stipulated increases the proportion of non-performing loans. |
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