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Molterer, M., Amon, J., Tyrell, M. Specialized Financial Intermediaries and the Impact of Savings and Loan Contracts on Real Estate Finance. Credit and Capital Markets – Kredit und Kapital, 56(2), 145-195. https://doi.org/10.3790/ccm.2023.1418201
Molterer, Manuel; Amon, Julian and Tyrell, Marcel "Specialized Financial Intermediaries and the Impact of Savings and Loan Contracts on Real Estate Finance" Credit and Capital Markets – Kredit und Kapital 56.2, 2023, 145-195. https://doi.org/10.3790/ccm.2023.1418201
Molterer, Manuel/Amon, Julian/Tyrell, Marcel (2023): Specialized Financial Intermediaries and the Impact of Savings and Loan Contracts on Real Estate Finance, in: Credit and Capital Markets – Kredit und Kapital, vol. 56, iss. 2, 145-195, [online] https://doi.org/10.3790/ccm.2023.1418201
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Specialized Financial Intermediaries and the Impact of Savings and Loan Contracts on Real Estate Finance

Molterer, Manuel | Amon, Julian | Tyrell, Marcel

Credit and Capital Markets – Kredit und Kapital, Vol. 56 (2023), Iss. 2 : pp. 145–195

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/ccm.2023.1418201
Language
English
Pages
51
Keywords

Author Details

Dr. Manuel Molterer, Zeppelin University, Am Seemooser Horn 20, 88045 Friedrichshafen.

Julian Amon, PhD, Wirtschaftsuniversität Wien, Institute for Statistics and Mathematics, Welthandelsplatz 1, 1020 Wien.

Prof. Dr. Marcel Tyrell, University Witten/Herdecke, ISIC – The PPE Institute for Social and Institutional Change, Faculty of Management, Economics and Society, Chair of Banking and Finance, Alfred-Herrhausen-Str. 50, 58448 Witten.

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Abstract

Using several different datasets obtained from the German Central Bank (Deutsche Bundesbank) and the German Federal Statistical Office, we provide empirical evidence that savings and loan contracts (SLCs) are a macrosocial phenomenon that smooths housing demand by setting countercyclical incentive structures. Such contracts can thus serve theoretically as important stabilizers of housing (loan) demand. This idiosyncratic characteristic of the German real estate finance market, provided by German building societies („Bausparkassen“), may also explain the notorious stability of the country’s housing market. The significant macroeconomic importance of housing market stability has been prominently highlighted in the context of the 2007/2008 financial crisis, which was triggered by the collapse of the U.S. subprime mortgage market. This research is particularly relevant for countries that experienced fragile housing markets with a high level of cyclicality in demand and nominal house prices.

Table of Contents

Section Title Page Action Price
Manuel Molterer / Julian Amon / Marcel Tyrell: Specialized Financial Intermediaries and the Impact of Savings and Loan Contracts on Real Estate Finance 145
Abstract 145
I. Introduction 146
II. Literature Review 149
1. Characteristics of Real Estate Markets 149
2. Volatility of Real Estate Markets 150
3. Housing Markets and the Financial System 152
4. Policy Discussion 153
III. Stability Aspects of Savings and Loan Contracts 154
1. Institutional Background: German Building Societies 154
2. Specific Contracts: Savings and Loan Contracts 157
3. Countercyclical Market Mechanisms and Stabilizing Moments 160
IV. Sample Selection and Methodology 165
1. Sample Construction and Summary Statistic 165
2. Methodology 170
V. Empirical Results 170
1. Perspective of Allocated Credits 171
2. Deposits in Savings and Loan Contract Accounts 177
3. Robustness Checks 182
VI. Conclusion 183
References 192

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