The role of building societies on the market of hypothec loaning: world experience and Russia

Abstract

Based on the study of international experience in modeling residential mortgage, the need to develop savings and loan institutions is justified - banks of building savings - as an institution to meet mass demand of the general population of Russia on the improvement of living conditions. In particular, the history of mortgage lending in Asia and Europe is described in details. Particular attention is paid to the models of the Eastern Europe (Czech Republic, Slovakia, Hungary and Poland) and Germany. The percentage volume of housing loans to GDP in transition and developed countries is compared. The reasons for the backlog of Poland and the Czech Republic from more developed countries are investigated. It is concluded that exactly the building society was the starting point for the rapid evolution of housing finance in different countries. The advantageous features of this institution as reducing credit risk through specialization, providing a source of long-term money and effective tool for the selection of reliable borrowers to the banking sector, as well as beneficial effects on the economic culture of borrowers are indicated.