Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers

Olivier De Jonghe, Konstantins Benkovskis, Karolis Bielskis, Diana Bonfim, Margherita Bottero, Tamás Briglevics, Martin Cesnak, Mantas Dirma, Marina Emiris, Pálma Filep-Mosberger, Valentin Jouvanceau, Nicholas Kaiser, Dmitry Khametshin, Tibor Lalinsky, Viola M. Grolmusz, Laura Moretti, Arturs Janis Nikitins, Angelo Nunnari, Maria Rodriguez-Moreno, Elitsa Stefanova, Lajos Szabó, Karlis Vilerts and Sujiao Emma Zhao
Additional contact information
Konstantins Benkovskis: Latvijas Banka
Karolis Bielskis: Lietuvos Bankas
Diana Bonfim: Banco de Portugal; Católica Lisbon
Margherita Bottero: Banca d’Italia
Tamás Briglevics: Central Bank of Hungary
Martin Cesnak: National Bank of Slovakia
Mantas Dirma: Lietuvos Bankas
Marina Emiris: National Bank of Belgium
Pálma Filep-Mosberger: Central Bank of Hungary
Valentin Jouvanceau: Lietuvos Bankas
Nicholas Kaiser: Central Bank of Ireland
Dmitry Khametshin: Banco de Espana
Tibor Lalinsky: National Bank of Slovakia
Viola M. Grolmusz: Central Bank of Hungary
Laura Moretti: Central Bank of Ireland
Arturs Janis Nikitins: Latvijas Banka
Angelo Nunnari: Banca d’Italia
Maria Rodriguez-Moreno: Banco de Espana
Elitsa Stefanova: European Central Bank
Karlis Vilerts: Latvijas Banka
Sujiao Emma Zhao: Banco de Portugal

No 2026/1, MNB Working Papers from Magyar Nemzeti Bank (Central Bank of Hungary)

Abstract: We study heterogeneity in households’ credit across nine European countries (Belgium, Spain, Hungary, Ireland, Italy, Latvia, Lithuania, Portugal, and Slovakia) during 2022-2024 using granular credit register data. We first document substantial between- and within-country variation in mortgage and consumer lending by borrower age, loan maturity, and interest rate fixation. We then quantify the pass-through of the ECB’s recent tightening cycle to household borrowing costs and assess its heterogeneous impact across households. Pass-through is nearly complete for mortgages (around 0.9) but considerably weaker for consumer credit (around 0.4). While mortgage pass-through is relatively homogeneous across countries, consumer credit shows pronounced cross-country differences that cannot be explained by borrower or loan characteristics. Younger households face stronger mortgage pass-through but weaker consumer credit pass-through relative to older borrowers, and longer maturities are associated with stronger pass-through in both credit markets.

Keywords: monetary policy transmission; household borrowing; credit registers; interest rate pass-through; cross-country heterogeneity (search for similar items in EconPapers)
JEL-codes: D14 E52 G21 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2026-06
New Economics Papers: this item is included in nep-eec and nep-mon
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https://www.mnb.hu/letoltes/mnb-wp-2026-1-final-1.pdf (application/pdf)

Related works:
Journal Article: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers (2026)
Working Paper: Household borrowing and monetary policy transmission: post-pandemic insights from nine European credit registers (2025)
Working Paper: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers (2025)
Working Paper: Household borrowing and monetary policy transmission: post-pandemic insights from nine European credit registers (2025)
Working Paper: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from NineEuropean Credit Registers (2025)
Working Paper: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers (2025)
Working Paper: Household borrowing and monetary policy transmission; post-pandemic insights from nine European Credit Registers (2025)
Working Paper: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers (2025)
Working Paper: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers (2025)
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