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http://dx.doi.org/10.17703/JCCT.2022.8.1.435

The Effect of Changes in Real Estate Prices on the Soundness of Korean Banks  

Jung, Heonyong (Dept. of Business Administration, Namseoul Univ)
Publication Information
The Journal of the Convergence on Culture Technology / v.8, no.1, 2022 , pp. 435-440 More about this Journal
Abstract
This study analyzed the impact of changes in real estate prices on the soundness of Korean banks using multiple regression models. As a result of the analysis, changes in real estate prices significantly increase the banks' non-performing loans through the increase in loans. Among macroeconomic variables, short-term interest rates were found to have a significant effect on all soundness indicators such as BIS capital adequacy ratio, non-performing loans ratio, and liquidity coverage ratio. Among the bank characteristics indicators, the loan growth rate had a significant negative effect on BIS capital adequacy ratio, and the real estate mortgage rate had a significant positive effect. In additional, it was found that non-performing loans ratio and liquidity coverage ratio had a negative effect on BIS capital adequacy ratio.
Keywords
BIS Capital Adequacy Ratio; NPL Ratio; Liquidity Coverage Ratio; Real Estate Price Changes;
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Times Cited By KSCI : 2  (Citation Analysis)
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