Every kinds of the newest directory together with a detailed dysfunction is actually exhibited from inside the Dining table 3, below

The next statement ‘s the Commission’s Study on the expenses and you can Advantages of the different Rules Possibilities for Financial Borrowing from the bank (Western european Payment, 2009, select particularly Annex B: Court Summaries)

To test the main theory that the straight to early payment increases the rate give involving the banks’ borrowing from the bank rates and you will lending pricing during the a far more formal style, we earliest built a customer cover directory. This new index categorizes countries according to types of settlement, if any, you to definitely customers must pay on their lenders if they intend to pay-off its mortgage loans up until the contractual due date. All of our categorical list adjustable ranges regarding the low number of user cover To get negotiated = 0 to your high level of individual cover Totally free = 2.

Right here we expected brand new central banks, ministries of money of your User Says and you will financial otherwise user safety associations in regards to the applicable amount of individual coverage within particular places

The list categorizes brand new laws ruling very early cost in all European union Member Says anywhere between 2006 and you will 2016 into the 1 month-to-month foundation. To find information regarding what laws governed very early repayments of which day and age in certain country, we draw out-of multiple supplies. A study conducted from the Western european Payment included in its energy to harmonize the new European mortgage avenues, achieved more information for the national financial , come across especially profiles 5581). Out of this studies i have drawn information on the new courtroom regimes ruling very early payments in the European union Affiliate Claims into the 2006. This study accumulated investigation to your quantities of user protection getting premature payments in 2009. not, one another profile incorporate mainly qualitative information regarding this new federal shelter levels. I thus put up our own group plan in order to assess these investigation and you can then followed a two fold-blind coding procedure. In the long run, when you look at the 2016 we conducted an e-send questionnaire to gather our personal number one data. The user shelter index one to resulted from our class exercising is presented into the Table cuatro, lower than.

Centered on the Individual Safeguards Directory i authored a couple of in another way coded explanatory details. These variables were chosen for the statistical patterns to check the new hypothesis that more strict user defense guidelines contributes to highest notice rates spreads between your banks’ credit costs and financing costs. Our very own basic, main changeable is the User Defense to possess Early Repayment (Dummy) adjustable. Since shown because of the their label, which variable was an excellent dummy one to requirements the original sounding our very own index Payment to your lender must be discussed otherwise damage need to be paid while the 0 and all almost every other classes, i.age. Responsibility cover or lender’s most management expenses just and you can No charge just like the 1. The rationale about it programming is that the site classification means those individuals places and that incorporate the new standard code used in package law to own a violation out of a customers financial contract. The fresh new varying rules Idaho Springs loans once the step one all the countries that diverge using this default rule and instead recommend a high compulsory shelter height getting user home loan contracts. That it dummy is for this reason a traditional and you will credible way of measuring the brand new individual safety levels for early money regarding the various other User Says. I use the dummy changeable within chief mathematical activities, as we consider this becoming the best level in order to shot all of our look theory.

The second variable is the User Cover to possess Very early Payment (Categorical) adjustable. This categorical variable contains the exact same programming since the consumer cover index lead a lot more than. In comparison to the dummy changeable, it’s the more finely grained and you may cutting-edge level. Out-of a legal point of view, the adjustable can be smaller legitimate, whenever we imagine that the multilinguistic, multijurisdictional environment of European union produced the brand new comparative legislation work on which the latest programming is based a challenging task. Also, the fresh new quantities of findings per group is actually quicker well-balanced than for new dummy variable. I for this reason utilize this changeable to own a general robustness sample. In any case, the outcome that individuals acquired having each other details was consistent with each other.