Home  Journals  Finance and Credit  10(442) - 2011 March

Increase of loyalty of the potential customers as an increment factor of mortgage loan portfolio of commercial bank

Available online: 10 March 2011

Subject Heading: BANK ACTIVITY

JEL Classification: 

Due to high competition in the domestic mortgage market, increased with renewed vigor after the financial crisis of 2008 to 2009, Russian banks are forced to continually liberalize relations with potential borrowers to make their terms more attractive and thereby increase the demand for them. In this paper analyzed the main methods of the liberalization of relations «bank-borrower», identified the positive and negative aspects of the application of these methods. Concluded that commercial banks, seeking to dominate the mortgage market, have to quickly respond to rapidly changing market conditions by offering their customers the conditions that are more interesting than its competitors while maintaining profitability and minimizing risk in shaping its portfolio of mortgage credits.

Keywords: mortgage, loan, portfolio, competition, loyalty

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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