Household borrowing and monetary policy transmission: post-pandemic insights from nine European credit registers

Olivier De Jonghe, Konstantins Benkovskis (), Karolis Bielskis (), Diana Bonfim (), Margherita Bottero (), Tamas Briglevics (), Martin Cesnak (), Mantas Dirma (), Marina Emiris (), Palma Filep-Mosberger, Valentin Jouvanceau (), Nicholas Kaiser (), Dmitry Khametshin (), Tibor Lalinsky, Viola M.Grolmusz (), Laura Moretti (), Arturs Janis Nikitins, Angelo Nunnari (), Maria Rodriguez-Moreno, Elitsa Stefanova, Lajos Szabó, Karlis Vilerts () and Sujiao Emma Zhao ()
Additional contact information
Konstantins Benkovskis: Latvijas Banka
Karolis Bielskis: Bank of Lithuania
Diana Bonfim: Banco de Portugal and Catolica Lisbon
Margherita Bottero: Banca d'Italia
Tamas Briglevics: Central Bank of Hungary
Martin Cesnak: National Bank of Slovakia
Mantas Dirma: Bank of Lithuania
Marina Emiris: National Bank of Belgium
Valentin Jouvanceau: Bank of Lithuania
Nicholas Kaiser: Central Bank of Ireland
Dmitry Khametshin: Banco de Espana
Viola M.Grolmusz: Central Bank of Hungary
Laura Moretti: Central Bank of Ireland
Arturs Janis Nikitins: Latvijas Banka
Angelo Nunnari: Banca d'Italia
Elitsa Stefanova: European Central Bank
Karlis Vilerts: Latvijas Banka
Sujiao Emma Zhao: Banco de Portugal and Catolica Lisbon

No 1509, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: We study heterogeneity in household borrowing across nine European countries (Belgium, Spain, Hungary, Ireland, Italy, Latvia, Lithuania, Portugal, and Slovakia) over the 2022-24 period 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, whereas longer maturities are associated with stronger pass-through in both credit markets.

Keywords: monetary policy transmission; household borrowing; credit registers; interest rate pass-through; cross-country heterogeneity (search for similar items in EconPapers)
JEL-codes: D14 E52 G21 (search for similar items in EconPapers)
Date: 2025-11
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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 Nine European Credit Registers (2025)
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