Potential Effects of the new amendment to the lawsgoverning financial services supervision on theGerman real estate market

URL
Dokumentart: Bachelor Thesis
Institut: Department Wirtschaft
Sprache: Englisch
Erstellungsjahr: 2017
Publikationsdatum:
SWD-Schlagwörter: Immobilienmarkt , Deutschland , Stabilität , Finanzdienstleistungsaufsicht
Freie Schlagwörter (Englisch): German real estate market, macro-prudential instruments, financial stability, real
DDC-Sachgruppe: Wirtschaft

Kurzfassung auf Englisch:

The German real estate market has been growing ever since the 2007-2008 financial crisis. Even though prices in the major cities have been growing at a more accelerated rate, the growth is still visible throughout the entire country. The main price driver are an ever-growing demand and low interest rates. Even though the rising prices have been fundamentally justified and there is no speculative behaviour or expansionary credit growth evident in the market, authorities are still worried about the development of a bubble and the consequences it would have. The committee on financial stability advised the implementation of macro-prudential instruments in order to protect the financial stability of the country. They intended to prevent what happened in the United States from happening in Germany. With this consultation, the German Federal Financial Supervisory Authority was granted the ability to intervene and change the framework of real estate loans. With instruments such loan-to-value caps, debt-toincome caps, debt-sustainability ratios and amortization requirements, they are supposed to stabilise the real estate market and prevent it from becoming a threat to the financial stability of Germany in the future. Many countries before have used such instruments to reach the same goal. Drawing from experiences they made, one could determine the potential impacts they may have on the German real estate market.

Hinweis zum Urheberrecht

Für Dokumente, die in elektronischer Form über Datenenetze angeboten werden, gilt uneingeschränkt das Urheberrechtsgesetz (UrhG). Insbesondere gilt:

Einzelne Vervielfältigungen, z.B. Kopien und Ausdrucke, dürfen nur zum privaten und sonstigen eigenen Gebrauch angefertigt werden (Paragraph 53 Urheberrecht). Die Herstellung und Verbreitung von weiteren Reproduktionen ist nur mit ausdrücklicher Genehmigung des Urhebers gestattet.

Der Benutzer ist für die Einhaltung der Rechtsvorschriften selbst verantwortlich und kann bei Mißbrauch haftbar gemacht werden.