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This paper analyses the fundamental determinants of the household borrowing decisions in Hungary and Poland, using the Euro Survey data conducted by the Austrian central bank. The previous researches, based on the Euro Survey, are supplemented and enhanced in several respects. It bears utmost importance that instead of using simple ad hoc methods t...
Context in source publication
Context 1
... this very reason, we also examined the three biannual periods immediately preceding the crisis, as well as the three half-years after the crisis. In the case of Hungary, the results of the pre-crisis period resemble the estimation made on the full sample in many respects (Table 2). Those with a transaction account are more likely to borrow than those without a transaction account. ...Similar publications
Purpose of Review
Common currency tasks are tasks that investigate the same phenomenon in different species. In this review, we discuss how to ensure the translational validity of common currency tasks, summarise their benefits, present recent research in this area and offer future directions and recommendations.
Recent Findings
We discuss the str...
Citations
... In our opinion, this may also reflect households' negative experiences with foreign currency loans and the extremely volatile instalment amounts associated with them. Banai and Vágó (2016) also confirm that foreign currency lending gave rise to precautionary motives among households: based on data derived from the Austrian central bank's Euro Money Survey, the authors provided evidence that the negative experiences associated with foreign currency lending clearly set back credit demand. It is also conceivable that the "demand" problems presented in Section 5 can be perceived more strongly -possibly because of the limited number of active market participants -in the market of fixed-interest loans. ...
In recent years, the average spread on newly extended housing loans above the 3-month interbank interest rate has been consistently higher compared to spreads in neighbouring countries. This paper investigates the reasons behind it by using econometric tools and simple statistical examinations. In our two-step approach, we first identify the determinants of spreads based on Hungarian transaction-level and bank-level data, and then examine the Hungarian banking system's sectoral performance relative to other European countries in the main determinants identified. Our findings reveal that the higher spreads currently mainly stem from the high proportion of products with initial rate fixation of over one year, the relatively large stock of non-performing loans, and credit losses. High operating costs in international comparison may also have an impact on the setting of spreads. According to our estimates, demand-side attributes also contribute to the emergence of high spreads, as does the low level of competition in certain regions. Journal of Economic Literature (JEL) codes: G02, G20, G21
