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, Tamás Briglevics, Martin Cesnak, Mantas Dirma, Marina Emiris, Pálma Filep-Mosberger, Valentin Jouvanceau, Nicholas Kaiser, Dmitry Khametshin, Tibor Lalinsky, Viola M. Grolmusz, Laura Moretti, Artūrs Jānis Nikitins, Angelo Nunnari, Maria Rodriguez-Moreno, Elitsa Stefanova, Lajos Szabó, Kārlis Vilerts and Sujiao Emma Zhao

No 3146, Working Paper Series from European Central Bank

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 passthrough 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. JEL Classification: E52, G21, D14

Keywords: credit registers; cross-country heterogeneity; household borrowing; interest rate pass-through; monetary policy transmission (search for similar items in EconPapers)
Date: 2025-11
New Economics Papers: this item is included in nep-cba, nep-eec, nep-eur, nep-inv and nep-mon
Note: 1004919
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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)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20253146

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