Article

 

The impact of the crisis on foreign currency borrowing of households in CESEE - Implications for economic policy (p.37-47)  [Fichier PDF]
 
by
 
Elisabeth Beckmann, Oesterreichische Nationalbank
Helmut Stix, Oesterreichische Nationalbank
 
Keywords : Foreign currency loans, Behavior of households, Regulation, CEEC
JEL classification : D14, G21, G28
 
Abstract
The crisis highlighted the risks associated with foreign currency lending to households. Based on previous research and micro evidence from the Euro Survey of the Austrian Central Bank, this note shows that households in CESEE perceive foreign currency loans as riskier, but demand for these loans is remarkably stable. We argue that economic policy needs to distinguish between supply and demand driven foreign currency lending. If it is driven by demand factors, restrictive regulation might not be the remedy.