Seminar
![Ibolya](/sites/default/files/styles/crop_promo_image/public/images/promo/sibolya2017ev2_6.jpg?h=070eb3d0&itok=6Z3P03rY)
Wednesday, February 16, 2022, 12:00 pm – 1:00 pm
Speaker
Abstract: We study how monetary conditions change the supply by banks of mortgage credit to households. We exploit the widespread presence of foreign currency mortgages in Hungary and study this country`s comprehensive credit registry. Changes in monetary conditions not only affect the supply of credit in volume, but also in its currency and risk composition. Hence, we establish a “bank-lending-to-households” channel of monetary policy that is heterogeneous. While the availability of foreign currency mortgages weakens the domestic bank-lending channel overall, weakly capitalized domestic banks relying on swap transactions for their foreign currency lending are more sensitive to changes in monetary conditions.