Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/223061
Title: RESIDENTIAL MORTGAGE-BACKED SECURITISATION: FEASIBILITY IN SINGAPORE
Authors: LIM CHUN LI EDDY
Keywords: RE
Real Estate
Agarwal Sumit
2014/2015 RE
Issue Date: 3-Jun-2015
Citation: LIM CHUN LI EDDY (2015-06-03). RESIDENTIAL MORTGAGE-BACKED SECURITISATION: FEASIBILITY IN SINGAPORE. ScholarBank@NUS Repository.
Abstract: Given Singapore’s status as a global financial centre, it is a quandary as to why residential mortgage-backed securitization is non-existent in this city-state. In particular, countries in the region such as Malaysia and Hong Kong have their own established secondary mortgage markets while Singapore is clearly lagging behind in this regard. In fact, there is a potential for growth in mortgage, with an untapped market of over S$207 billion worth of outstanding housing loans in 2014 waiting to be converted into securities. This study recognises from the subprime mortgage crisis that when left unregulated, mortgage securitisation would bring about a host of problems such as moral hazard and adverse selection, where the interests of the originators are not aligned with those of the investors. While there have clearly been serious issues associated with securitisation, greater regulation and oversight would help to retain many of the benefits. It is thus essential to achieve an appropriate regulatory balance. This study then seeks to determine, using a set of prerequisites, if residential mortgage securitisation can be feasible in Singapore. It then concludes with a proposed structure for the implementation of a secondary market in Singapore, using lessons learnt from a cross-country comparison of regional mortgage markets, and also from the U.S. subprime crisis. Having a strong government support and a proper framework for a secondary mortgage institution, along with removing legal impediments to the system, would pave the way forward for residential mortgage securitisation in Singapore.
URI: https://scholarbank.nus.edu.sg/handle/10635/223061
Appears in Collections:Bachelor's Theses

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
Lim Chun Li Eddy 2014-2015.pdf921 kBAdobe PDF

RESTRICTED

NoneLog In

Page view(s)

17
checked on Feb 2, 2023

Download(s)

4
checked on Feb 2, 2023

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.