Parallel stories: FX lending to households in Poland, Romania and Hungary, 1997–2011

András Hudecz ()
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András Hudecz: European Parliament, rue Wiertz 60 1047 Brussels, Belgium

Acta Oeconomica, 2013, vol. 63, issue 3, 257-286

Abstract: The analysis of household foreign currency (FX) lending begins with a short review of the theoretical and empirical literature. I investigate the factors that have helped or hindered such lending, particularly in Central and Eastern Europe. The study goes on to look at the experiences in Poland, Romania and Hungary. The choice is based on the fact that all three countries operate a flexible exchange rate regime and that household FX lending is prevalent in all of them. The analysis of each country touches upon the factors that have contributed to the local development of FX borrowing. However, the study focuses on the regulatory measures taken to curb such lending. The study concludes with a review and critical assessment of the policies that have been adopted with an eye to solving social and economic difficulties arising from FX indebtedness.

Keywords: FX lending; household borrowing; prudential regulation; international comparison; Hungary; Poland; Romania (search for similar items in EconPapers)
JEL-codes: E44 E51 E58 E61 G21 G28 (search for similar items in EconPapers)
Date: 2013
Note: This study is a shortened version of the Hungarian study published in Közgazdasági Szemle, 2012, Vol. LIX (April). I would like to thank Lajos Bokros for his useful comments and Andrea Hudecz for her help. I am also grateful to the anonymous referees for their contributions to improving the text.
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