IE Seminar – Schindele, Ibolya: The Impact of Monetary Conditions on Bank Lending to Households

05/03/2020 - 05/03/2020 14:00 - 16:00

Venue: MTA HTK 1097 Budapest Tóth Kálmán u. 4. fszt. K011-12-es előadóterem

We study the impact of monetary conditions on the supply of mortgage credit by banks to
households. Using comprehensive credit register data from Hungary, we first establish a “banklending-
to-households” channel by showing that monetary conditions affect the supply of
mortgage credit in volume. We then study the impact of monetary conditions on the composition
of mortgage credit along its currency denomination and borrower risk. We find that expansionary
domestic monetary conditions increase the supply of mortgage credit to all households in the
domestic currency and to risky households in the foreign currency. Because most households are
unhedged, bank lending in multiple currencies may involve additional risk taking. Changes in
foreign monetary conditions affect lending in the foreign currency more than in the domestic
currency, and also differ in their compositional impact along firm risk.

Felhasználási feltételek
Impresszum
Intézményünk országos és nemzetközi hálózati kapcsolatát az NIIF program biztosítja
Közgazdaság- és Regionális Tudományi Kutatóközpont Közgazdaság-tudományi Intézet
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