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Which borrower in CESEE gets which loan? Evidence from the OeNB Euro Survey

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  • Marc Bittner

    (Oesterreichische Nationalbank)

Abstract

This paper sheds light on the distribution of three types of retail loans as well as their drivers in ten countries of Central, Eastern and Southeastern Europe (CESEE). Based on data from the OeNB Euro Survey, the study aims at analyzing the characteristics of individuals taking out loans for (1) housing, (2) consumption or (3) education, business or professional activities and other purposes. Logistic regression is used to analyze average marginal effects of a variety of independent variables, such as sociodemographic factors, (economic) attitudes and expectations, trust in institutions, and financial literacy. Identifying and understanding characteristics of borrowers holding certain types of loans may inform the formulation of microprudential policies and thus help promote financial stability. Apart from being married, trusting domestic banks and the EU as well as having an internet connection at home, having earned income is very important for all three types of loans, with the level of personal income impacting on housing loans only. Borrowers’ level of education is a key driver of both housing loans and loans for education, business or professional activities and other purposes, and less so of consumer loans. High inflation expectations have a significant impact on consumer loans as well as on loans for education, business or professional activities and other purposes. Depending on the loan type, the number of significant drivers differs greatly.

Suggested Citation

  • Marc Bittner, 2021. "Which borrower in CESEE gets which loan? Evidence from the OeNB Euro Survey," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/21, pages 77-92.
    • Handle: RePEc:onb:oenbfi:y:2021:i:q4/21:b:2
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    File URL: https://www.oenb.at/dam/jcr:5a19355a-e0b4-40d0-bca4-f2ed93093f9d/05_FEEI_q4%20-21_Which-borrower-in-CESEE.pdf
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    References listed on IDEAS

    as
    1. Elisabeth Beckmann & Antje Hildebrandt & Krisztina Jäger-Gyovai, 2015. "Current risks in the CESEE residential property market: evidence from the OeNB Euro Survey," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 26-38.
    2. Mariya Hake & Philipp Poyntner, 2019. "Household loans in CESEE from a new perspective: the role of income distribution," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q2/19, pages 75-93.
    3. Olympia Bover & Jose Maria Casado & Sonia Costa & Philip Du Caju & Yvonne McCarthy & Eva Sierminska & Panagiota Tzamourani & Ernesto Villanueva & Tibor Zavadil, 2016. "The Distribution of Debt across Euro-Area Countries: The Role of Individual Characteristics, Institutions, and Credit Conditions," International Journal of Central Banking, International Journal of Central Banking, vol. 12(2), pages 71-128, June.
    4. Elisabeth Beckmann & Christa Hainz & William Pyle & Sarah Reiter, 2019. "Homeownership and housing finance patterns one generation after the fall of communism," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/19, pages 79-101.
    5. Aleksandra Riedl, 2019. "Household debt in CESEE economies: a joint look at macro- and micro-level data," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/19, pages 6-28.
    6. Altundere, Merve Büşra, 2014. "The Relationship Between Sociability and Household Debt," MPRA Paper 90617, University Library of Munich, Germany.
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    More about this item

    Keywords

    types of loans; key drivers; CESEE; survey data; average marginal effects;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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