Template-Type: ReDIF-Paper 1.0

Author-Name: Gyozo Gyongyosi
Author-X-Name-First: Gyozo
Author-X-Name-Last: Gyongyosi
Author-Email: gyongyosi@safe-frankfurt.de
Author-Workplace-Name: Leibniz Institute for Financial Research SAFE and Magyar Nemzeti Bank (Central Bank of Hungary)

Author-Name: Steven Ongena
Author-X-Name-First: Steven
Author-X-Name-Last: Ongena
Author-Email: steven.ongena@bf.uzh.ch
Author-Workplace-Name: University of Zurich, Swiss Finance Institute, KU Leuven, NTNU, and CEPR

Author-Name: Ibolya Schindele
Author-X-Name-First: Ibolya
Author-X-Name-Last: Schindele
Author-Email: schindelei@ceu.edu 
Author-Workplace-Name: Central European University and Magyar Nemzeti Bank (Central Bank of Hungary)


Title: Monetary Policy and Household Loan Supply: Volume and Composition Effects
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.
Length: 57 pages
Creation-Date: 2022
File-URL: https://www.mnb.hu/letoltes/mnb-wp-2022-2-final-1.pdf
File-Format: Application/pdf
Number: 2022/2
Classification-JEL: E51, F3, G21.
Keywords: Bank balance-sheet channel, household lending, monetary policy, foreign currency lending.
Handle: RePEc:mnb:wpaper:2022/2