| Summary: | 碩士 === 長庚大學 === 管理學院碩士學位學程在職專班財務金融組 === 101 === Appropriate valuation for loan collaterals, such as lands and real estates, is crucial for banks. When the value of collaterals appraised is in fact unreasonable or inaccurate, the loan approved would likely be misled, and the higher chances of excess loaning, therefore imposing greater risks for banks. Thus, precise appraisal of collaterals done by appraisers of the bank is important.
Many studies have found different factors and methods of appraisal could lead to vast results in approving the credit line of mortgages. In this study, we select 335 cases of real estate mortgages from a bank branch in northern Taiwan. We discuss whether the appraisal of collateral would be influenced by the appraisers and the clients themselves, types of collaterals, lending policies of the bank, and the business cycle and house prices. By applying statistical approaches, namely the ANOVA test, t-test, and multiple regression model analysis, we conclude our results as following.
The dependent variable here is the high and low end of the appraisal value. Apart from the appraisers themselves pose significant effect on collateral appraisal, two independent variables from the clients’ side, the credit line which the client applies towards the bank for and the sell price of real estate, also show significance on the dependent variable. Other two variables from the collateral side, the current value of land to the appraisal value ratio and types of the real estates, show significance as well. The economic growth rate and commodity price index from the business cycle and house price side too show significant effects. Empirical results imply the appraisal of collaterals may be anchored by the selling price of real estates, and as banks usually apply the market comparison method, appraisal may be heavily impacted by the economy.
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