The International Finance Corporation (IFC) supports primary market interventions in a variety of ways, including strengthening existing markets and creating new mortgage lenders. When operating in emerging markets, IFC supports non-bank financial institutions (NBFIs) to develop the mortgage market, as most commercial banks see the loans as too high risk. Once NBFIs develop the mortgage market, commercial banks often enter the market as well, seeing housing finance as profitable and low-risk.
The IFC established a NBFI mortgage institution in the West Bank and Gaza, in an attempt to resolve complex land ownership issues due to Israeli and Palestinian land zones. The aim was to increase the use of land unit registration through joint technical assistance from the World Bank and additional partners, expecting that this would mitigate the risks of the underdeveloped legal and regulatory environment. However, this wasn’t the case – technical assistance was insufficient, and because of the complexity of land issues, they are best dealt with through dedicated land tenure interventions.
Source:
World Bank Group. (2016) World Bank Group Support to Housing Finance. International Bank for Reconstruction and Development / The World Bank.
Link: https://ieg.worldbankgroup.org/evaluations/world-bank-group-support-housing-finance