IDEAS home Printed from https://ideas.repec.org/p/mnb/wpaper/2022-2.html
   My bibliography  Save this paper

Monetary Policy and Household Loan Supply: Volume and Composition Effects

Author

Listed:
  • Gyozo Gyongyosi

    (Leibniz Institute for Financial Research SAFE and Magyar Nemzeti Bank (Central Bank of Hungary))

  • Steven Ongena

    (University of Zurich, Swiss Finance Institute, KU Leuven, NTNU, and CEPR)

  • Ibolya Schindele

    (Central European University and Magyar Nemzeti Bank (Central Bank of Hungary))

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-households2 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.

Suggested Citation

  • Gyozo Gyongyosi & Steven Ongena & Ibolya Schindele, 2022. "Monetary Policy and Household Loan Supply: Volume and Composition Effects," MNB Working Papers 2022/2, Magyar Nemzeti Bank (Central Bank of Hungary).
    • Handle: RePEc:mnb:wpaper:2022/2
    as

    Download full text from publisher

    File URL: https://www.mnb.hu/letoltes/mnb-wp-2022-2-final-1.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Bank balance-sheet channel; household lending; monetary policy; foreign currency lending.;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • F3 - International Economics - - International Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mnb:wpaper:2022/2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lorant Kaszab (email available below). General contact details of provider: https://edirc.repec.org/data/mnbgvhu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.