Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers

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

No WP 16/2025, Working and Discussion Papers from Research Department, National Bank of Slovakia

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 withincountry 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 areassociated with stronger pass-through in both credit markets.

JEL-codes: D14 E52 G21 (search for similar items in EconPapers)
Pages: 76 pages
Date: 2025-11
New Economics Papers: this item is included in nep-eec, nep-eur and nep-mon
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