Assessment of the consequences of the introduction of a minimal collateral requirement in the Belgian mortgage credit market based on a social justice perspective.

Details

Supervisors

Maniquet, François

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [60] en sciences économiques, orientation générale

Abstract

The objective of this thesis is to assess a potential State intervention and its effects from a social justice perspective. More precisely, the fixation of a minimal collateral requirement of 20% for the applicant will be covered. As it can be expected, such a measure would hinder social justice as less people will be able to enter the market, but, less intuitively, it would also influence banks return, abilities and its mechanisms. This thesis is conceived as follows: it shall at first define the concepts used in the questioning (mortgage loans, the dysfunctionality credit market, State regulation, the credit stake etc.). Then, it will be argued that this questioning is a social justice issue and therefore needs to be seen as such. Afterwards, all the actual regulations will be listed. Next, we will draw the prequels of the new regulation, in our case, a minimal collateral requirement, and see how it will influence the actual credit stake. To conclude, we will review the potential consequences and issues that may appear on the market if such a measure is to be put in place.