Most of the types of this new list and an in depth dysfunction are presented for the Desk step three, less than

The following statement ‘s the Commission’s Learn from the expense and you may Advantages of the various Coverage Possibilities for Mortgage Borrowing from the bank (European Commission, 2009, look for particularly Annex B: Legal Information)

To test our very own main theory the directly to very early repayment increase the interest rate give amongst the banks’ credit rate and you may credit rates inside an even more specialized trends, we very first built a consumer defense list. The newest directory categorizes regions with respect to the particular settlement, or no, one to users must pay on their lenders when they decide to repay their mortgage loans till the contractual deadline. Our very own categorical list varying ranges regarding the reasonable quantity of individual cover Is negotiated = 0 towards highest level of user cover No charge = 2.

Here we asked this new central banks, ministries regarding financing of one’s Associate Claims and you can bank otherwise consumer safety associations regarding appropriate amount of consumer defense inside their particular nations

Our very own directory categorizes the laws and regulations governing very early fees in most European union Associate States anywhere between 2006 and you may 2016 into the a month-to-times foundation. Locate information about exactly what statutes influenced very early payments at which time for the certain nation, we mark away from several present. A survey conducted from the Western european Fee as part of their energy to help you harmonize the brand new Eu home loan areas, gathered detailed information towards federal home loan , get a hold of particularly pages 5581). Out of this research you will find pulled details about the newest legal regimes ruling very early payments from the European union User States when you look at the 2006. This study collected study to the quantities of consumer shelter to own premature repayments last year. Although not, one another records incorporate mostly qualitative information regarding brand new national coverage membership. We hence set up our personal classification scheme in order to quantify these types of investigation and you can then followed a dual-blind coding procedure. Ultimately, in 2016 we used an age-post survey to gather our personal number one study. The user safety index one lead from our class exercise is presented when you look at the Desk cuatro, lower than.

According to all of our Consumer Safeguards List i written a couple differently coded explanatory details. These types of parameters were used in the analytical designs to evaluate the latest hypothesis more stringent individual protection guidelines contributes to large interest price spreads between your banks’ borrowing rates and you will financing costs. Our basic, fundamental variable is the Individual Defense getting Very early Fees (Dummy) varying. Because the shown from the the title, it variable is actually a good dummy you to definitely requirements the first sounding all of our index Settlement toward financial have to be negotiated otherwise damages need to be paid given that 0 and all sorts of almost every other groups, we.e. Liability cap or lender’s additional administrative expenses merely and No charge since 1. The rationale behind it coding is the fact that reference category is short for those individuals nations and therefore apply brand new standard laws used in price rules to own a violation out-of a customers home loan bargain. The brand new variable rules since step 1 every places you to definitely diverge using this standard rule and you may rather prescribe a higher mandatory coverage height for individual mortgage contracts. So it dummy try thus a traditional and you may reputable way of measuring this new user coverage membership to have very early money on various other Member States. I use the dummy varying in our chief statistical models, even as we think it over is the most appropriate level to help you sample our search theory.

Our very own second adjustable ‘s the Consumer Safeguards having Very early Fees (Categorical) variable. Which categorical variable comes with the same coding once the individual safety directory delivered over. In comparison to the dummy changeable, this is the so much more carefully grained and you can complex scale. Away from a legal views, this new varying are quicker credible, if loans in Littleton we thought that multilinguistic, multijurisdictional environment of one’s European union made the comparative legislation work about what the programming is based a challenging task. Additionally, the fresh new quantities of observations for every classification try shorter healthy than for brand new dummy varying. We therefore make use of this varying having an over-all robustness shot. In any case, the outcomes that we obtained that have both variables is actually in keeping with both.