| dc.description.abstract | Banks play the role of credit intermediary in overall economic activities, and have become the pioneer in consumer finance. Banks usually rely on individuals and households to provide deposits as sources of funding; meanwhile, individuals and households also finance from banks when they need loans. According to the latest institutional reports showed that consumer finance has been one of the highest profitable items in credit business. However, consumer finance is called “the item” of highest indirect cost and the biggest risk due to it’s lent to individuals whose financial situations are vulnerable to disease, unemployment and so on. Therefore, banks need to pay more attention to consumers’ financial credit qualities, and strengthen the management of assets and liabilities in order to obtain reasonable profits under taking moderate risks.
Real estates’ prices change for several times in economic cycle in Taiwan, and they make the price of real estates rising and even soaring. Therefore, the prices directly impact on the borrower’s burden of housing loans. Finally the borrowers need to rely on the housing loans from banks. According to the latest statistics of Taiwan central bank show that there are as much as 4.6 trillion NTD of housing loans accounted for 69.48 percent of consumer loans; as much as 849.9 billion NTD of housing repair loans accounted for 12.71 percent of consumer loans, and the above are accounted for 82.19 percent of consumer loans at the end of March, 2008. It’s obviously that housing loans is major profit source in consumer finance.
To satisfy the highly competition of housing loans business and the needs of house purchaser, banks have to take business strategy of higher credit limits and lower borrowers’ qualities to create high market shares and make more profits. Therefore, there are “Second Lien Loans” and “Home Equity Loans” in the market, they are different from traditional mortgages with credit, and provide more flexibility and liquidity of loans. However, the domestic economy remains in recession in recent years, leading to the overdue loans of banks surged and the risks of housing loans continuing increased.
In this study, ’’branches’’ are investigated to their “Home Equity Loans” and “Second Lien Loans” with using ANOVA and regression analysis. Empirical results show that: overdue loan ratios have significant relationship to do with self-related variances such as ＂the loans balance of second lien loans/ loans＂, ＂the loans balance of home equity loans/ loans＂, ＂saving-loan ratios＂, ＂deposit-saving ratios＂, and ＂regional branches location＂. | en_US |