Clogged intermediation: Were home buyers crowded out?

• Main Authors: CHOI, Hyunsoo, CHOI, Hyun-Soo, KIM, Jung-Eun
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Credit rationing; mortgage lending; post-crisis slump; monetary transmission; distributional effects; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5411; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6410/viewcontent/LoanSubstitution.pdf
• Institution: Singapore Management University

Post-crisis policy interventions significantly increased the demand for mortgage refinancing, but could this surge in refinancing applications have crowded out the supply of credit to home buyers? In this paper, we examine two frictions that hamper financial intermediation and result in banks'...