New Survey Evidence for Household Resilience to Current Shocks

Fang Yao
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Fang Yao: Central Bank of Ireland

No 5/FS/23, Financial Stability Notes from Central Bank of Ireland

Abstract: This Note summarises the findings of a new survey of Irish residents that provides timely insights on financial vulnerabilities in early 2023. As of February this year, 8.7 per cent of borrowers report missing a mortgage payment in the past year. In addition, 4.6 per cent of mortgage holders appear vulnerable on the basis of having missed personal debt payments. Up to this point, financial distress appears to be driven by inflation, with other drivers like illness, changing family circumstances, interest rates, and income losses being also important. Lastly, the survey suggests that the size of liquidity buffers available to support mortgage payments may be limited for some households. In the event of a broader economic downturn, more limited usable liquidity buffers may be a key vulnerability for segments of the household sector.

Date: 2023-06
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