The second statement is the Commission’s Study from the costs and you can Benefits of various Coverage Selection to own Mortgage Credit (Eu Payment, 2009, get a hold of specifically Annex B: Court Information)
To test all of our main theory your to very early fees increase the interest rate give amongst the banks’ borrowing speed and you will financing prices inside the a more certified trend, i basic constructed a customers security directory. The fresh list classifies regions according to the type of settlement, if any, you to people need to pay on the lenders once they intend to pay the mortgage loans until the contractual deadline. Our categorical directory changeable selections regarding the low level of user shelter Become discussed = 0 towards the large quantity of consumer security Totally free = 2.
Here i requested the fresh new main banking institutions, ministries out-of financing of your own Member States and you can bank or user defense associations regarding the relevant amount of consumer shelter within their particular places
Our very own list classifies new statutes ruling very early cost in every Eu Representative States anywhere between 2006 and you may 2016 with the thirty days-to-few days base. To track down information on just what laws and regulations ruled early money at which era within the certain country, we draw out of numerous present. A study conducted by Eu Payment as an element of the energy so you can harmonize this new Western european home loan avenues, achieved more information to the national home loan , look for particularly pages 5581). Out of this studies i have removed information on the latest courtroom regimes ruling early costs regarding the European union User Claims for the 2006. This research collected investigation for the quantities of consumer shelter having untimely money last year. Although not, each other records contain generally qualitative information about the newest national safety account. I ergo arranged our own classification system so you can assess these types of study and you can then followed a double-blind coding techniques. Eventually, in 2016 we held an age-send survey to gather our very own first investigation. The consumer cover directory you to definitely lead from your class workout is displayed inside the Table 4, less than.
According to the User Cover Directory i created one or two in another way coded explanatory variables. These types of variables were chosen for our very own analytical patterns to test the newest hypothesis that more stringent individual protection statutes causes large attention price develops between your banks’ borrowing prices and lending pricing. The basic, fundamental varying ‚s the Individual Safety having Early Cost (Dummy) varying. While the expressed from the its label, this variable was a beneficial dummy one to codes the original group of the directory Settlement on financial must be negotiated otherwise damage need to be paid because 0 and all sorts of almost every other kinds, we.e. Liability cover otherwise lender’s extra management expenditures merely and Totally free given that step 1. The rationale behind it coding is that the site class stands for the individuals regions and therefore apply the new standard laws included in contract law getting a violation from a consumer home loan deal. The latest varying rules just like the step 1 all regions you to definitely diverge from this default signal and you may instead recommend a higher required safety top to possess user mortgage deals. Which dummy try for this reason a traditional and you will reliable way of measuring the brand new user cover accounts to have very early money on the some other User Claims. I make use of the dummy variable inside our head mathematical habits, once we consider this getting the most appropriate size so you’re able to sample our very own research theory.
Our second adjustable ‚s the User Safety having Very early Cost (Categorical) changeable. This categorical adjustable provides the exact same coding given that consumer protection directory produced above. In comparison to the dummy changeable, it will be the so much more carefully grained and you will advanced size. Out of an appropriate attitude, the newest varying tends to be reduced credible, whenever we thought your multilinguistic, multijurisdictional environment of your European union made the relative law serious hyperlink efforts on what new coding depends a challenging task. Additionally, the newest variety of observations for each and every category is actually quicker balanced than for the fresh dummy varying. We therefore make use of this varying having a standard robustness attempt. Nevertheless, the results that individuals acquired which have both variables was in line with each other.
