There is a growing concern over the rapid increase in mortgage loans and consumer credit of households in SEACEN economies in recent years. Rising household credit has important implications for the economy. Periods of excessive credit growth has often been linked with episodes of financial and macroeconomic instability. The 2009 global financial crisis, which was partly caused by excessive private sector debt, provides a key example of this observation.
SEACEN recognizes the importance of this issue for its member economies. The guiding objective, therefore, of this study is to better understand the factors driving the increase in household demand for mortgage finance and consumer credit in SEACEN economies and to assess the implications of the rising trend on financial stability. The descriptive analysis and empirical exercises are undertaken with an end view of helping policy makers design initiatives and measures that will maximize the economic and welfare benefits of increased household credit while mitigating the potential vulnerabilities it could trigger in the system.
This research volume is a result of collaborative efforts of SEACEN and member central banks. Chapter one is the integrative report which compares and analyses the cross regional experiences of the participating SEACEN economies prepared by the project team leader while the following chapters comprise the team project papers authored by the respective project team members from participating SEACEN member central banks. The team project papers discuss in greater detail the trends and developments in mortgage finance and consumer credit in the individual economies.
CHAPTER 1: INTEGRATIVE REPORT ON MORTGAGE FINANCE AND CONSUMER CREDIT:
IMPLICATIONS ON FINANCIAL STABILITY IN SEACEN ECONOMIES
By Faith Christian Q. Cacnio
CHAPTER 2: CONSUMER LOANS IN CAMBODIA: IMPLICATIONS ON FINANCIAL STABILITY
By Channarith Meng
CHAPTER 3: MORTGAGE FINANCE AND CONSUMER CREDIT: IMPLICATIONS ON FINANCIAL STABILITY
By Rakesh Kumar
CHAPTER 4: MORTGAGE FINANCING AND CONSUMER CREDIT AND THEIR IMPLICATIONS TO FINANCIAL STABILITY:
A CASE STUDY OF INDONESIA
By Wahyu Hidayat Sulistyawan and Shinta Fitrianti
CHAPTER 5: THE EFFECT OF HOUSEHOLD DEBT ON CONSUMPTION: DELEVERAGING AND
FINANCIAL STABILITY IN KOREA
By Jong Chil Son
CHAPTER 6: MORTGAGE FINANCING AND CONSUMER CREDIT: IMPLICATION TO FINANCIAL STABILITY
IN MALAYSIA
By Chuin Siang Bu
CHAPTER 7: MORTGAGE FINANCE AND CONSUMER CREDIT: IMPLICATIONS ON FINANCIAL STABILITY
IN MONGOLIA
By Tsenddorj Dorjpurev and Khash-Erdene Badrakh
CHAPTER 8: MORTGAGE FINANCE AND CONSUMER CREDIT: IMPLICATIONS ON FINANCIAL STABILITY
By Myat Thida Min
CHAPTER 9: LOAN AGAINST FIXED COLLATERAL AND CONSUMER CREDIT: RECENT TRENDS AND
IMPLICATION ON FINANCIAL STABILITY IN NEPAL
By Guru Prasad Paudel
CHAPTER 10: MORTGAGE FINANCE AND CONSUMER CREDIT – PAPUA NEW GUINEA
By Boniface Aipi
CHAPTER 11: HOUSING AND CONSUMER CREDIT IN THE PHILIPPINES: RECENT TRENDS AND
IMPLICATIONS ON FINANCIAL STABILITY
By Veronica B. Bayango
CHAPTER 12: MORTGAGE FINANCE AND CONSUMER CREDIT: IMPLICATIONS ON FINANCIAL STABILITY
IN SRI LANKA
By H.P.G.S. Ratnasiri
CHAPTER 13: MORTGAGE FINANCE AND CONSUMER CREDIT: IMPLICATIONS FOR FINANCIAL STABILITY
IN CHINESE TAIPEI
By Pi-Chun Hsu and Yihming
CHAPTER 14: MORTGAGE FINANCE AND CONSUMER CREDIT: IMPLICATIONS ON FINANCIAL STABILITY
THE CASE OF VIETNAM
By Duc Trung Nguyen