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

Olivier De Jonghe, Konstantīns Beņkovskis, Karolis Bielskis, Diana Bonfim, Margherita Bottero, Tamás Briglevics, Martin Cesnak, Mantas Dirma, Marina Emiris, Palma Filep-Mosberger, Valentin Jouvanceau, Nicholas Kaiser, Dmitry Khametshin, Tibor Lalinský, Viola M. Grolmusz, Laura Moretti, Artūrs Jānis Nikitins, Angelo Nunnari, Maria Rodriguez-Moreno, Elitsa Stefanova, Lajos Szabó, Karlis Vilerts and Sujiao Emma Zhao
Additional contact information
Konstantīns Beņkovskis: Latvijas Banka
Karolis Bielskis: Bank of Lithuania and IMS University of Management and Economics
Diana Bonfim: Banco de Portugal and Católica Lisbon
Margherita Bottero: Banca d’Italia
Tamás Briglevics: Central Bank of Hungary
Martin Cesnak: National Bank of Slovakia
Mantas Dirma: Bank of Lithuania
Marina Emiris: National Bank of Belgium
Nicholas Kaiser: Central Bank of Ireland
Dmitry Khametshin: Banco de España
Tibor Lalinský: European Central Bank and National Bank of Slovakia
Viola M. Grolmusz: Central Bank of Hungary
Laura Moretti: Central Bank of Ireland
Artūrs Jānis Nikitins: Latvijas Banka
Angelo Nunnari: Banca d’Italia
Elitsa Stefanova: European Central Bank
Sujiao Emma Zhao: Banco de Portugal and Católica Lisbon

International Journal of Central Banking, 2026, vol. 22, issue 2, 91-194

Abstract: We study heterogeneity in households’ credit across nine European countries (Belgium, Spain, Hungary, Ireland, Italy, Latvia, Lithuania, Portugal, and Slovakia) during 2022–24 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.

Date: 2026
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Related works:
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)
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