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, Briglevics, Tamás, Martin Cesnak, Mantas Dirma, Marina Emiris, Palma Filep-Mostberger, Valentin Jouvanceau, Nicholas Kaiser, Dmitry Khametshin, Tibor Lalinsky, Viola Grolmusz, Laura Moretti, Arturs Nikitins, Angelo Nunnari, Maria Rodriguez Moreno, Elitsa Stefanova, Lajos Tamas Szabo, KÄ rlis Vilerts and Zhao, Sujiao (Emma)

No 20928, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study heterogeneity in households' credit across nine European countries (Belgium, Spain, Hungary, Ireland, Italy, Latvia, Lithuania, Portugal, and Slovakia) during 2022-2024 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.

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: 2025-12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP20928 (application/pdf)

Related works:
Journal Article: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers (2026)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:20928

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP20928

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().