Feedbacks and Systematic Risk of Denominated Debt in Poland (Sprzezenia zwrotne i ryzyko systemowe kredytow denominowanych w Polsce)

Ireneusz Dąbrowski

Problemy Zarzadzania, 2015, vol. 13, issue 55, 170-181

Abstract: On January 15th 2015, when the Swiss National Bank (SNB) suddenly announced that it would no longer hold the Swiss franc at a fixed exchange rate with the euro, there was panic. The franc soared, which drastically affected the cost of loans taken out in francs. Poland is in the second place in the European Union in terms of outstanding loans in that currency. At the end of January 2015 housing loans in CHF in Poland were valued at 149.6 billion zlotys (PLN). The problem of turbulence arising from foreign currency loans and loans denominated in foreign currencies is multi-layered and complex. The article presents the characteristics of the risks of loans denominated in CHF, taking into account individual risks and systemic risk. The final effect of exceeding a critical mass of systemic risk is the emergence of positive feedback and the threat of losing control over the dynamics of the crisis.

Keywords: feedbacks; denominated debt; systematic risk (search for similar items in EconPapers)
JEL-codes: E51 G21 G32 H12 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:sgm:pzwzuw:v:13:i:55:y:2015:p:170-181

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