Affordable Housing An International Perspective

Crisis Impact Prior to financial crisis, business models followed to reach affordable housing segment performed well in many markets 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 Financial crisis has exposed weakness in some of these models, especially NBFIs Exposed NBFIs overly dependent on funding from capital markets and highly leveraged. Exposed NBFIs overly dependent on funding from capital markets and highly leveraged. However, NBFIs are important to the sector Focus on affordable housing market However, NBFIs are important to the sector Focus on affordable housing market Commercial banks have tended to focus on lending to businesses, not retail finance Commercial banks have tended to focus on lending to businesses, not retail finance

Some answers?? Need a port in a storm Need a port in a storm Match funding and lower leverage Match funding and lower leverage Understand which segments are subsidizing the each other and to what extend to expose your vulnerabilities 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 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 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 Supporting housing microfinance and home improvement lending models