Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/193594
Authors: 
Kelly, Jane
Le Blanc, Julia
Lydon, Reamonn
Year of Publication: 
2019
Series/Report no.: 
ESRB Working Paper Series 87
Abstract: 
Using household survey data, we document evidence of a loosening of credit standards in Euro area countries that experienced a property price boom-and-bust cycle. Borrowers in these countries exhibited significantly higher loan-to-value (LTV) and loan-to-income (LTI) ratios in the run up to the financial crisis, and an increasing tendency towards longer-term loans compared to borrowers in other countries. In recent years, despite the long period of historically low interest rates and substantial house price increases in some countries, we do not find similar credit easing as before the crisis. Instead, we find evidence of a considerable change in borrower characteristics since 2010: new borrowers are older and have higher incomes than before the crisis.
Subjects: 
real estate markets
macroprudential policy
systemic risk
financial crises
bubbles
financial regulation
financial stability indicators
JEL: 
E5
G01
G17
G28
R39
Persistent Identifier of the first edition: 
ISBN: 
978-92-9472-073-3
Document Type: 
Working Paper
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