Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/195378
Authors: 
Gyöngyösi, Győző
Ongena, Steven
Schindele, Ibolya
Year of Publication: 
2019
Series/Report no.: 
Kiel Working Paper 2124
Abstract: 
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 "bank-lending-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.
Subjects: 
bank balance-sheet channel
household lending
monetary policy
foreign currency lending
JEL: 
E51
F3
G21
Document Type: 
Working Paper
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