Bank Lending and Commercial Property Cycles: Some Cross-Country Evidence
- Topics:
- Commercial Banking
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Overview: Motivated by the frequently observed link between commercial property price volatility and banking crises, this paper investigates at a macroeconomic level the determination of commercial property prices and the interaction between commercial property prices and bank lending. It develops a reduced-form theoretical model which suggests bank lending is closely related to commercial property prices and that commercial property can develop cycles given plausible assumptions, where the cycles are largely driven by the dynamic linkage between the commercial property sector, bank credit and the macro economy.
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Format: PDF | Size: 341KB | Date: Mar 2004 | Pages: 45





