Template-Type: ReDIF-Paper 1.0
Author-Name: Olivier De Jonghe
Author-X-Name-First: Olivier
Author-X-Name-Last: De Jonghe
Author-Workplace-Name: European Central Bank
Author-Name: Konstantins Benkovskis
Author-X-Name-First: Konstantins
Author-X-Name-Last: Benkovskis
Author-Workplace-Name: Latvijas Banka
Author-Name: Karolis Bielskis
Author-X-Name-First: Karolis
Author-X-Name-Last: Bielskis
Author-Workplace-Name: Bank of Lithuania
Author-Name: Diana Bonfim
Author-X-Name-First: Diana
Author-X-Name-Last: Bonfim
Author-Workplace-Name: Banco de Portugal
Author-Name: Margherita Bottero
Author-X-Name-First: Margherita
Author-X-Name-Last: Bottero
Author-Workplace-Name: Banca d'Italia
Author-Name: Tamas Briglevics 
Author-X-Name-First: Tamas
Author-X-Name-Last: Briglevics
Author-Workplace-Name: Central Bank of Hungar
Author-Name: Martin Cesnak
Author-X-Name-First: Martin
Author-X-Name-Last: Cesnak
Author-Workplace-Name: National Bank of Slovakia
Author-Name: Mantas Dirma
Author-X-Name-First: Mantas
Author-X-Name-Last: Dirma
Author-Workplace-Name: Bank of Lithuania
Author-Name: Marina Emiris
Author-X-Name-First: Marina
Author-X-Name-Last: Emiris
Author-Workplace-Name: National Bank of Belgium
Author-Name: Palma Filep-Mosberger
Author-X-Name-First: Palma
Author-X-Name-Last: Filep-Mosberger
Author-Workplace-Name: Central Bank of Hungary
Author-Name: Valentin Jouvanceau
Author-X-Name-First: Valentin
Author-X-Name-Last: Jouvanceau
Author-Workplace-Name: Bank of Lithuania
Author-Name: Nicholas Kaiser
Author-X-Name-First: Nicholas
Author-X-Name-Last: Kaiser
Author-Workplace-Name: Central Bank of Ireland
Author-Name: Dmitry Khametshin
Author-X-Name-First: Dmitry
Author-X-Name-Last: Khametshin
Author-Workplace-Name: Banco de Espana
Author-Name: Tibor Lalinsky
Author-X-Name-First: Tibor
Author-X-Name-Last: Lalinsky
Author-Workplace-Name: National Bank of Slovakia
Author-Name: Viola M. Grolmusz
Author-X-Name-First: Viola
Author-X-Name-Last: Grolmusz
Author-Workplace-Name: Central Bank of Hungary
Author-Name: Laura Moretti
Author-X-Name-First: Laura
Author-X-Name-Last: Moretti
Author-Workplace-Name: Central Bank of Ireland
Author-Name: Arturs Janis Nikitins
Author-X-Name-First: Arturs Janis
Author-X-Name-Last: Nikitins
Author-Workplace-Name: Latvijas Banka
Author-Name: Angelo Nunnari
Author-X-Name-First: Angelo
Author-X-Name-Last: Nunnari
Author-Workplace-Name: Banca d'Italia
Author-Name: Maria Rodriguez-Moreno
Author-X-Name-First: Maria
Author-X-Name-Last: Rodriguez-Moreno 
Author-Workplace-Name: Banco de Espana
Author-Name: Elitsa Stefanova
Author-X-Name-First: Elitsa
Author-X-Name-Last: Stefanova
Author-Workplace-Name: European Central Bank
Author-Name: Lajos Tamas Szabo
Author-X-Name-First: Lajos Tamas
Author-X-Name-Last: Szabo
Author-Workplace-Name: Central Bank of Hungary
Author-Name: Karlis Vilerts
Author-X-Name-First: Karlis
Author-X-Name-Last: Vilerts
Author-Workplace-Name: Latvijas Banka 
Author-Name: Sujiao Emma Zhao
Author-X-Name-First: Sujiao Emma
Author-X-Name-Last: Zhao
Author-Workplace-Name: Banco de Portugal
Title: Household Borrowing and Monetary Policy Transmission: Post-Pandemic Insights from Nine European Credit Registers
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.
Creation-Date: 2025-11-10
File-URL: https://datnes.latvijasbanka.lv/papers/WP_9_2025.pdf
File-Format: Application/pdf
Number: 2025/09
Classification-JEL: E52, G21, D14
Keywords: monetary policy transmission, household borrowing, credit registers, interest rate pass-through, cross-country heterogeneity
Handle: RePEc:ltv:wpaper:202509