Publication Type
Journal Article
Version
acceptedVersion
Publication Date
1-2024
Abstract
This paper examines whether and how individual risk-taking behavior affects real estate financing through shadow banks. Using the loan data from an online platform in China, we show that riskier households tend to employ online loans to meet the increasing down-payment in their home purchase. Individual investors are likely to fund riskier real estate loans with higher expected returns. Real estate loans experience higher ex-post default rates than other types of loans. The effect is more pronounced during the period of credit constraints.
Keywords
Online lending, risk taking, real estate loans, house purchase restrictions
Discipline
Asian Studies | Finance and Financial Management | Real Estate
Publication
Journal of Real Estate Finance and Economics
Volume
68
Issue
1
First Page
1
Last Page
27
ISSN
0895-5638
Identifier
10.1007/s11146-022-09936-7
Publisher
Springer
Citation
DENG, Xiaoying; LIU, Chong; and ONG, Eng Seow.
Shadow bank, risk-taking, and real estate financing: Evidence from the online loan market. (2024). Journal of Real Estate Finance and Economics. 68, (1), 1-27.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7239
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1007/s11146-022-09936-7