IPD models effects of slotting UK property loan book
Whitmore, James
IPD models effects of slotting UK property loan book - 2012 - Property Week 78(39) 28 September 2012, 21(1) .
IPD has published the first study of the Financial Services Authority's (FSA) new slotting measures designed to ensure banks have enough cash set aside to cover losses on property lending. IPD used real data from its databank classifying 3 442 loans totalling £56.6bn in value according to FSA categories. The study shows that slotting provides disincentives for underwriting "strong"and "good" loans because much more capital has to be held on low-risk lending than is necessary.
United Kingdom
IPD models effects of slotting UK property loan book - 2012 - Property Week 78(39) 28 September 2012, 21(1) .
IPD has published the first study of the Financial Services Authority's (FSA) new slotting measures designed to ensure banks have enough cash set aside to cover losses on property lending. IPD used real data from its databank classifying 3 442 loans totalling £56.6bn in value according to FSA categories. The study shows that slotting provides disincentives for underwriting "strong"and "good" loans because much more capital has to be held on low-risk lending than is necessary.
United Kingdom