 FX mortgages, housing boom and financial stability – a case study for Poland (2005-2015)Jacek Łaszek (), Hanna Augustyniak and Krzysztof Olszewski () Chapter 3 in Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis - 2015 edition, 2016, pp v1, 87-101 from Narodowy Bank Polski Abstract: Poland underwent a quick transition of the economy, but its housing market and housing policy did not change quick enough. The economic growth that followed the EU accession lead to a rising housing demand, which was fuelled by quite cheap FX denominated mortgages. Those allowed many households to satisfy their housing needs quite quickly, but combined with an insufficient housing supply lead to a price boom, that was followed by oversupply. As the housing needs started to be met, the oversupply lead to falling house prices, which in real terms reached pre-boom levels. The recent global and European economic turmoil made the Polish currency depreciate. The effect was very strong when the SNB abandoned the EUR CHF peg and some mortgage takers found themselves under water. Still the majority of the mortgage takers made a good deal and the banking sector remained stable. We present a case study, explain how the FX lending emerged and how we managed to stay safe. Keywords: Housing market cycles; housing finance; FX market (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpchp:2-3 Access Statistics for this chapter More chapters in Chapters from NBP Conference Publications from Narodowy Bank Polski Contact information at EDIRC. |
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