Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/269177 
Year of Publication: 
2022
Series/Report no.: 
MNB Working Papers No. 2022/2
Publisher: 
Magyar Nemzeti Bank, Budapest
Abstract: 
We study how monetary conditions change the supply by banks of mortgage credit to households. We exploit the widespread presence of foreign currency mortgages in Hungary and study this country's comprehensive credit registry. Changes in monetary conditions not only affect the supply of credit in volume, but also in its currency and risk composition. Hence, we establish a "bank-lending-to-households" channel of monetary policy that is heterogeneous. While the availability of foreign currency mortgages weakens the domestic bank-lending channel overall, weakly capitalized domestic banks relying on swap transactions for their foreign currency lending are more sensitive to changes in monetary conditions.
Subjects: 
Bank balance-sheet channel
household lending
monetary policy
foreign currency lending
JEL: 
E51
F3
G21
Document Type: 
Working Paper

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