Housing Finance in Emerging Markets (eBook)

Housing Finance in Emerging Markets 3
Preface 5
The Importance of Housing Finance for the Poor 5
The Focus of This Book 6
Table of Contents 9
CHAPTER 1 Introduction: The Challenges of Housing Finance 11
CHAPTER 2 Housing Finance and Financial Inclusion 16
Abstract 16
Introduction 17
The Changing Frontier of Mortgage Markets 21
Empirical Measures 21
Going Deeper: Access Frontiers 29
Determinants of Access 30
Defining Access to Mortgages 33
The Poor and Their Housing Finance: A Bottom-Up View 36
Which Housing Finance Instruments Do Poor People Use? 37
Who Connects Low-Income Households to Formal Housing Finance? 42
Community-Based Approaches 45
Connecting the Pieces 46
Conclusion 47
References 49
General Data Sources 52
Country Sources 52
Annex A 53
CHAPTER 3 Government Policies and Their Implications for Housing Finance 58
Introduction 58
Why Do Governments Intervene in Housing Finance? 60
Where to Start? Assessing Housing Problems and Their Causes 63
Expanding Formal Housing Frontiers: Reforming Land and Real Estate Markets 67
Housing Finance Subsidies and the Expansion of Markets 75
Conclusion 86
References 87
CHAPTER 4 Regulation and Access to Finance 91
Abstract 91
Introduction 93
Regulation at the Crossroads 96
Information Technology, Risk Modelling – New Perspectives on Credit Risk 112
Conclusion 122
References 123
CHAPTER 5 Institutions and the Promotion of Housing Finance 126
Abstract 126
Introduction 127
Targeting Specific Private Market Failure and the Lack of Infrastructure 133
Conclusion 138
References 139
CHAPTER 6 Wholesale Funding Instruments 141
Introduction 141
Wholesale Funding: What Has Been Tried? 143
Securitization: Structures and Credit Enhancement 148
Liquidity Facilities 157
Challenges in Wholesale Finance for Low Income Housing 159
Conclusion 162
References 163
Annex 1: Prerequisites for Wholesale Funding 166
Annex 2: Types of Credit Enhancement 170
CHAPTER 7 Primary Mortgage Market Development in Emerging Markets – Is the Central and Eastern Europe Experience Replicable in Sub-Saharan Africa? 175
Abstract 175
Introduction 176
Assessing Progress in Primary Market Development 177
Market Developments in Central and Eastern Europe 179
What Has Driven Product Development and Better Access to Mortgage Credit? 189
Mortgage Market Developments in Sub-Saharan Africa 190
Comparisons Between CEE and SSA Markets 199
Conclusion 211
References 213
CHAPTER 8 Housing Finance from Post-conflict Intervention to Market Development in the Balkans 217
Introduction 217
International Post-conflict Policy Response in Housing Construction and Rehabilitation 219
From Post-conflict Policy Response to Sustainable Housing Finance 220
Sustainable Housing Refinance: Establishing a Vehicle to Support Financial Market Development 222
Beneficiary Characteristics and Programme Impacts 223
Programme Impact on Lending Institutions and Markets 227
Conclusion 229
References 229
CHAPTER 9 Approaches and Policies at KfW Entwicklungsbank 231
Introduction 231
KfW Housing Finance Activities 232
Housing Microfinance 233
Primary/Secondary Market Development 234
Housing Finance and Energy Efficiency 235
Post-disaster Housing Finance Support 236
Guiding Principles 237
Challenges Ahead 239
Index of Regions and Institutions 242
Index of Keywords 244