Mortgage Securitizacion and Economic Development: an Essay on Chile´s Caja de Crédito Hipotecario
Abstract
This essay examines the first 50 years of the National Mortgage Bank of Chile (Caja de Crédito Hipotecario) following its creation in 1855. During the second half of the nineteenth century the Mortgage Bank’s credit operations spurred the rapid expansion of irrigation in Chile’s Central Valley and made possible a concomitant increase in agricultural exports. Despite the strong secular rise in credit during this period, the Mortgage Bank had to confront large external shocks, including three sudden stops of foreign capital in 1857, 1873, and 1890. This essay shows that after a shaky start the Mortgage Bank was able to provide liquidity to borrowers that offset declines in banking credit during years of financial distress.
Full text article
Authors
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright / Open Access Policy: This journal provides immediate free open access to its content on the principle that making research freely available to the public supports a greater global exchange of ideas and is distributed under the terms and conditions of the Creative Commons Attribution License (CC BY).
The copyright will be retained by the authors. Articles are free for personal use but are protected by copyright in the sense that they may not be used for purposes other than personal use without the permission of the author.