Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/119503
Authors: 
Pellényi, Gábor
Bilek, Péter
Year of Publication: 
2009
Series/Report no.: 
FINESS Working Paper D.5.4
Abstract: 
We use household survey data from Hungary to analyse the determinants of foreign currency (FX) borrowing. We do not find evidence that Hungarian FX borrowers are better educated, wealthier or more risk-loving than their peers. In fact, FX borrowing is a common phenomenon driven mostly by macroeconomic factors: high interest rate spreads, a relatively stable exchange rate and the competition of foreign owned banks. Although FX borrowing is widespread, our analysis suggests that loan losses directly attributed to it may be limited, given currency fluctuations up to autumn 2009.
Subjects: 
foreign currency borrowing
households
survey data
liability dollarization
JEL: 
D14
F34
G21
Document Type: 
Working Paper

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