World Bank2012-06-142012-06-142007-11https://hdl.handle.net/10986/8106Sri Lanka has embarked on a gradual transition from a system of directed credit in a highly segmented market toward an integrated market-driven housing finance system. This transition has included an increased role of private universal banks in the immediate term and a functioning secondary mortgage market in the long term. An active system of housing finance provides real economic benefits and positively affects savings, investment, and household wealth. It provides an investment option for long-term funds in the economy as an alternative to investment in treasury bonds. In turn, each dollar invested in the housing sector catalyzes economic activity in other sectors, exerting an indirect positive impact on employment levels, the retirement system, fiscal returns, and consumption. Housing finance enables households to accumulate assets that can provide the collateral for their investment needs, thus stimulating small business. Housing finance development boosts equitable economic growth and reduces poverty by improving living conditions, empowering the middle and lower-income population, and strengthening communities. Housing policy focuses on improving government land use and maximizing the use of the existing housing stock by providing basic public services and upgrades.CC BY 3.0 IGOACCESS TO FINANCEACCESSIBILITYACCOUNT HOLDERSADVISORY SERVICESAFFORDABILITYAFFORDABLE HOUSINGAFFORDABLE HOUSING FINANCEALTERNATIVE INVESTMENTALTERNATIVE INVESTMENTSAVAILABILITY OF CREDITBACKED SECURITIESBALANCE SHEETSBANK ASSETSBANK BRANCHESBANK DEPOSITSBANK LENDINGBANK LOANSBANKING RELATIONSHIPBANKING SERVICESBANKING SYSTEMBARRIERS TO ENTRYBOND MARKETBORROWERBORROWINGBORROWINGSBUSINESS VOLUMECAPACITY BUILDINGCAPITAL ACCOUNTCAPITAL MARKETCAPITAL MARKETSCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMERCIAL LENDINGCOMMUNITY DEVELOPMENTCONSUMER FINANCECONSUMER PROTECTIONCONTRACTUAL SAVINGSCOOPERATIVESCORE DEPOSITSCREDIT BUREAUSCREDIT INFORMATIONCREDIT INFORMATION BUREAUCREDIT PROVIDERCREDIT RISKCREDIT SCORINGCREDIT-SCORINGCUSTOMER BASEDEBTDEBT FINANCINGDEBT INSTRUMENTSDEMAND FOR CREDITDEPOSITDEPOSITSDEVELOPMENT BANKDEVELOPMENT BANKSDEVELOPMENT FINANCEDIRECTED CREDITDONOR FUNDSEARNINGSECONOMIC ACTIVITYECONOMIC GROWTHECONOMIC RESOURCESELECTRONIC TRANSFEREMPLOYEEEMPLOYEREMPLOYER CONTRIBUTIONSEQUITY INVESTMENTSEXPENDITUREEXPENDITURESFAMILIESFINANCE COMPANIESFINANCIAL ASSETSFINANCIAL DEPTHFINANCIAL GLOBALIZATIONFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL LIBERALIZATIONFINANCIAL MARKETSFINANCIAL SECTOR ASSESSMENTFINANCIAL SECTOR POLICIESFINANCIAL SERVICESFINANCIAL SYSTEMFISCAL DEFICITSFISCAL DISCIPLINEFISCAL POLICIESFISCAL RESOURCESFIXED RATEFIXED RATESFLOW OF FUNDSFORECLOSUREFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFORMAL FINANCIAL INTERMEDIARIESFORMAL FINANCIAL SECTORFUNDING SOURCESGOVERNMENT FUNDINGGOVERNMENT INTERVENTIONSGOVERNMENT SECURITIESHIGH INTEREST RATESHOME LOANHOME LOANSHOME MORTGAGEHOME MORTGAGE CREDITHOME MORTGAGE LENDINGHOME MORTGAGE MARKETHOME MORTGAGE MARKETSHOME MORTGAGESHOMEOWNERHOMEOWNERSHIPHOUSEHOLD ACCESSHOUSEHOLD DEPOSITSHOUSEHOLDSHOUSING FINANCEHOUSING LOANHOUSING LOANSHUMAN CAPITALINCOME GROUPINCOME GROUPSINFORMATION TECHNOLOGYINSTITUTIONAL CAPACITYINTEREST RATEINTEREST RATE RISKINTEREST RATE RISKSINTEREST RATESINVESTABLE FUNDSINVESTMENT BANKINVESTMENT RISKLABOR MOBILITYLACK OF PROPERTYLAND REGISTRATIONLENDERLENDERSLENDING POLICIESLENDING TECHNIQUESLIQUIDITY RISKLOANLOAN FUNDSLOAN TERMSLONG-TERM FUNDINGMACROECONOMIC POLICYMACROECONOMIC RISKSMARKET DEVELOPMENTMARKET ECONOMIESMICRO FINANCEMICRO FINANCE INSTITUTIONSMICROFINANCEMICROFINANCE INSTITUTIONSMICROFINANCE LENDINGMONETARY POLICYMORTGAGEMORTGAGE CREDITMORTGAGE FINANCINGMORTGAGE LENDERSMORTGAGE LENDINGMORTGAGE LOANMORTGAGE LOANSMORTGAGE MARKETMORTGAGE PRODUCTSMORTGAGE RATEMORTGAGE RATESMORTGAGESMULTINATIONALSNATIONAL BANKNEW MARKETOPERATING COSTSOUTREACHPOINT-OF-SALEPOLICY ENVIRONMENTPOOR ACCESSPRICE MOVEMENTSPRIVATE CREDITPRIVATE INVESTMENTPRIVATE LENDERSPRIVATE SAVINGSPRIVATIZATIONPROFITABILITYPROPERTY RIGHTSPUBLIC INVESTMENTREAL ESTATEREFUGEESREGISTRATION SYSTEMREGULATORY FRAMEWORKREPAYMENTREPAYMENTSRETAIL BANKRETURNRISK MANAGEMENTSAVINGSSAVINGS ACCOUNTSSAVINGS BANKSAVINGS RATESAVINGS RATESSECOND MORTGAGESSECONDARY MORTGAGE MARKETSECONDARY MORTGAGE MARKETSSMALL BUSINESSSMALL BUSINESS LOANSSMALL BUSINESSESSMALL ENTERPRISESSOURCE OF FUNDSSOURCES OF FUNDSSTOCK MARKETTECHNICAL ASSISTANCETITLE REGISTRATIONTREASURY BILLSTURNOVERUNIONSUNIVERSAL BANKSURBAN AREASURBAN DEVELOPMENTVALUATIONVALUATION STANDARDSVULNERABLE GROUPSWorld Bank10.1596/8106