The Sensitivity of Bank Performance to Local Housing Prices

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance

Profile picture of Nhan Le

Topic: The Sensitivity of Bank Performance to Local Housing Prices - Evidence from Diversified and Local Banks

Speaker: Nhan Le, Australian National University

Abstract: This paper investigates the performance sensitivity of geographically diversified and non-diversified banks to local housing prices. We show that despite being constrained in diversification capacity, non-diversified banks experience a lower performance sensitivity to housing prices than their diversified counterparts. The difference in sensitivity is pronounced in bear (but not in bull) housing markets. Further analysis reveals that non-diversified banks better manage their loan quality and capture under-served market segments. Taken together, our findings highlight the advantage and resilience of non-diversified banks and explain why they have successfully coexisted with diversified banks over the past consolidation decades in the banking industry.

Moderator: Kenny Phua, University of Technology Sydney

Date: Wednesday, 4th May 2022
Time: 12-1 pm (Australian Eastern Standard Time)
Venue: On campus face-to-face seminar in room CB08.08.002 that will also be streamed via Zoom

Seminar protocols:

  • The webinar will run for 45 minutes, followed by a 15 minute Q&A session.
  • There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
  • Participants can use the chat facility or raise their had to ask questions during the presentation. The moderator will then alert the speaker at the appropriate time and either ask the questions raised or unmute the participant so they can ask the question directly to the presenter.

Co-ordinator: Kenny Phua
Enquiries: Ray Alonso

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Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.