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Paper eres2013_103:
Real Estate Risk & Exposure of Banking Institutions to Real Estate

id eres2013_103
authors Ong, Seow Eng; Mohd Khairul, Muhammad Faishal Ibrahim, Le Thi Thanh Thao
year 2013
title Real Estate Risk & Exposure of Banking Institutions to Real Estate
source 20th Annual European Real Estate Society Conference in Vienna, Austria
summary Analyzing the real estate risk sensitivity of GCC banking institutions, we found that both real estate loan and equity exposure of conventional and Islamic banks positively increases its real estate beta risk. The results persist across different subsamples. As expected, the effect is more persistent during time periods when bank's real estate exposure is elevated. Generally, due to the greater real estate exposure of Islamic banks, they possess greater real estate beta risk than conventional banks. However there is no evidence that Islamic banks real estate exposure has a differential effect on real estate risk vis--vis conventional banks. With limited Shariah compliant real estate hedging capabilities, improving the management of real estate risk in Islamic banks could be a potential foray for regulators and product structurers.
keywords Real estate exposure, Banks, Risk, Shariah compliance, GCC
series ERES:conference
type paper session
email rstongse@nus.edu.sg
more http://library.eres.org/cgi-bin/rsa98.pl?conf=ERES2013&type=session&theme=E&slot=5712
discussion No discussions. Post discussion ...
ratings
session E-7: International Real Estate
last changed 2014/10/21 21:51
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