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

Marc Bittner ()
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Marc Bittner: Oesterreichische Nationalbank

Focus on European Economic Integration, 2021, issue Q4/21, 77-92

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.

Keywords: types of loans; key drivers; CESEE; survey data; average marginal effects (search for similar items in EconPapers)
JEL-codes: D12 D14 (search for similar items in EconPapers)
Date: 2021
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