THE demand for
housing loan will continue to grow in the future. But, there was a need to
develop more statistical tools to gauge the evolving trends, Reserve Bank of
India (RBI) Executive Director Mr. Deepak Mohanty on recently said.
“Keeping in view the
demand-supply gap, our favourable demography, increasing urbanisation &
growth prospects, the demand for housing finance
will continue to
grow,” he said speaking at RBI’s Statistics Day conference.however, he said the
changing business cycles can impact household and banks’ balance sheets, and
hence, there is a need to develop a database on housing finance. “Risks also
arise to household and bank balance sheets due to fluctuations in prices and
changes in the business cycle.Hence, there is a need for developing a data base
on housing finance.”
Mr. Deepak Mohanty
said at present there are two (2) housing price indices sector regulator NHB's
Residex, which includes data from 20 cities, and RBI’s own index, which covers
nine (9) cities.
Mr. Deepak Mohanty
said information such as the loan - to - value (LTV) ratio, equated monthly
instalments (EMIs) to income ratio, price - to - income ratio & borrowers’
characteristics are also very important.
Speaking on
challenges on the statistical front for the central bank, Mr. Deepak Mohanty
pointed out that it needs to device methods to make better use of granular data
from banks.
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