IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Banks' venture into real estate: high rollers, or lemmings?

Listed author(s):
  • Lynn E. Browne
Registered author(s):

    During the 1980s, commercial banks expanded their mortgage lending more rapidly than other financial institutions. This article examines the factors responsible for the variations in commercial banks’ real estate lending, in an attempt to determine whether banks pursued real estate loans in a high-risk, high-return strategy, or simply were caught up in the general enthusiasm for real estate lending. ; The author’s regression analysis provides some support for the argument that banks looked to real estate loans to bolster their financial performance. She also finds that in New England, where banks were particularly aggressive in increasing their real estate lending and suffered a much higher failure rate than banks nationwide, pursuit of real estate loans was also pursuit of growth. And in New England, where most banks grew rapidly, those that grew fastest proved most vulnerable to failure.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

    Volume (Year): (1993)
    Issue (Month): Sep ()
    Pages: 13-32

    in new window

    Handle: RePEc:fip:fedbne:y:1993:i:sep:p:13-32
    Contact details of provider: Postal:
    600 Atlantic Avenue, Boston, Massachusetts 02210

    Phone: 617-973-3397
    Fax: 617-973-4221
    Web page:

    More information through EDIRC

    Order Information: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:fip:fedbne:y:1993:i:sep:p:13-32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.