The primary objective of the study was to develop a model which allowed banks to
measure home loan risk and determine prices accordingly.
A survey among banks revealed:
1. belief that the home loan market is more risky than 5 years ago
2. belief that lending in the "black" market is riskier than lending in the
"white" market
3. no model is used which allows risk-measurement for the purpose of home
loan pricing
4. mixed feeling as to the value of the proposed model - value, to a large
extent, would depend on flexibility.
A practical, flexible model has been developed which allows:
1. risk classification of loans in terms of geographical areas, product/client
characteristics, and loan performance
2. risk measurement in terms of potential losses relating to each loan
category
3. determination of appropriate pricing levels for each risk category. / Department of Economics / M. Com. (Accounting )
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/15809 |
| Date | 11 1900 |
| Creators | Powell, Robert John |
| Contributors | Kelly, M.V. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Format | 1 online resource (197 leaves) |
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