Abstract
Cross selling is a standard approach adopted in the banking industry in order to maximize the expected revenues related to a banking relationship and residential real estate loans are one of the the main instruments used in order to look for new customers and establish a medium-long term relationship. This chapter compares trends in cross selling and real estate loans for a representative set of European banks and shows that the two variables are not perfectly correlated and some banking features (like size or real estate loan specialization) may affect the link between residential real estate loans and cross selling. Not specialized real estate banks are those that benefit the most from cross selling activities due to an higher increase of the ROA and a less significant increase of the Z-Score.
The chapter is a result of the authors’ common effort and continuos exchange of ideas. The individual sections can be acknowledged as follows: Sects. 12.1 and 12.4 To Umberto Filotto and Claudio Giannotti, Sects. 12.2, 12.3.1 and 12.3.2 to Xenia Scimone and Sects. 12.3.3 and 12.3.4 to Gianluca Mattarocci.
The authors would like to thank Luca Bertalot (Secretary General) and Daniele Westig (Economic Adviser) of the European Mortgage Federation and European Covered Bond Council for Hypostat statistics.
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Filotto, U., Giannotti, C., Mattarocci, G., Scimone, X. (2017). Banks’ Risk Culture in Residential Mortgage and Cross-Selling Policies: Evidence from the Euro Area. In: Risk Culture in Banking. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-57592-6_12
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DOI: https://doi.org/10.1007/978-3-319-57592-6_12
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