The Study of Adjustable Rate Mortgage in Taiwan

• Main Authors: TSAI, TSUNG-HUA, 蔡宗樺
• Other Authors: PROF. LIANG, SHIN-AN
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/11268491954386395327

碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 98 === 　　The start of Adjustable Rate Mortgage has its historical factors. Because of it mostly regards the interest rate of the Certificate of Deposit or Commercial Paper as index sign, it does not only the interest rate of borrower adjust with market rate, but also the interest rate have public and transparent characteristic. There were 34 banks started Adjustable Rate Mortgage in Taiwan until 2009. Therefore, the domestic banks handle the business of Adjustable Rate Mortgage relatively to be experienced. What is the different between the pricing behavior of Adjustable Rate Mortgage and Prime Rate Mortgage？And what is the influence of mortgage pricing on the factors of operation, finance and mortgage performance of the banks in Taiwan？Are there similarities with the domestic and foreign empirical results？These questions are the key points which the article should study. 　　The article foucses on the types and pricing of the domestic Adjustable Rate Mortgage and explains with references of the domestic and foreign empirical results. First, using regression analysis, it discusses the factors deciding the interest rate of Prime Rate Mortgage, the Certificate of Deposit and the index of mortgage performance, and which one will affect the interest rate of Adjustable Rate Mortgage. Then, it discusses the factors deciding the interest rate of Adjustable Rate Mortgage whether similarly affect the initial rate. Finally, it researches which the variables will influence the pricing of margin, and further verifies the relationhsip between profits of bank management and its mortgage pricing. The article finds results that the variables of bank asset size, number of branches and loan growth rate show significance in all models.