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Affordable Housing. An International Perspective. Crisis Impact. Prior to financial crisis, business models followed to reach affordable housing segment performed well in many markets Financial crisis has exposed weakness in some of these models, especially NBFIs
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Affordable Housing An International Perspective
Crisis Impact • Prior to financial crisis, business models followed to reach affordable housing segment performed well in many markets • Financial crisis has exposed weakness in some of these models, especially NBFIs • Exposed NBFIs overly dependent on funding from capital markets and highly leveraged. • However, NBFIs are important to the sectorFocus on affordable housing market • Commercial banks have tended to focus on lending to businesses, not retail finance
Some answers?? • Need a ‘port in a storm’ • Match funding and lower leverage • Understand which segments are subsidizing the each other and to what extend to expose your vulnerabilities
What is IFC doing in Affordable Housing space? • Supporting FIs that have prove their ability to navigate in times of crisis • Promulgating responsible lending and international best practices helping our clients to reach market segment efficiently and prudently • Supporting housing microfinance and home improvement lending models
