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Impact of the COVID-19 Pandemic on the Consumer Credit Market in V4 Countries

Author

Listed:
  • Maria Czech

    (Department of Banking and Financial Markets, University of Economics in Katowice, 40-287 Katowice, Poland)

  • Blandyna Puszer

    (Department of Banking and Financial Markets, University of Economics in Katowice, 40-287 Katowice, Poland)

Abstract

The aim of this article is to analyse and assess the impact of the COVID-19 pandemic on the consumer credit market in the countries of the Visegrad Group (V4, i.e., the Czech Republic, Poland, Slovakia, and Hungary). There is no doubt that the pandemic has determined the amount of household debt due to consumer credit in the V4 group, and thus the question arises of how the pandemic affects the propensity of households to take out loans and the propensity to lend to them, and therefore whether it affects both the behaviour of borrowers and lenders. The study used the time series and multiple linear regression methods. The results of the study show that the Covid-19 pandemic has determined the level of household debt in the V4 group and is not indifferent to household decisions regarding taking out consumer loans. Although the research is preliminary, it has contributed to some extent to a better understanding of household indebtedness at a time of turbulence and instability resulting from health factors in V4 countries. In the future, this research will serve as the basis for future research on the phenomenon of household indebtedness in other countries.

Suggested Citation

  • Maria Czech & Blandyna Puszer, 2021. "Impact of the COVID-19 Pandemic on the Consumer Credit Market in V4 Countries," Risks, MDPI, vol. 9(12), pages 1-19, December.
    • Handle: RePEc:gam:jrisks:v:9:y:2021:i:12:p:229-:d:705289
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    References listed on IDEAS

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    1. Cristina Ottaviani & Daniela Vandone, 2010. "Impulsivity and household indebtedness," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1105, Universitá degli Studi di Milano.
    2. Özlem Dursun-de Neef, H. & Schandlbauer, Alexander, 2021. "COVID-19 and lending responses of European banks," Journal of Banking & Finance, Elsevier, vol. 133(C).
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    4. Gärling, Tommy & Kirchler, Erich & Lewis, Alan & van Raaij, Fred, 2009. "Psychology, Financial Decision Making, and Financial Crises," Sustainable Investment and Corporate Governance Working Papers 2009/7, Sustainable Investment Research Platform.
    5. Keese, Matthias, 2010. "Who Feels Constrained by High Debt Burdens? – Subjective vs. Objective Measures of Household Indebtedness," Ruhr Economic Papers 169, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. repec:zbw:rwirep:0169 is not listed on IDEAS
    7. Ottaviani, Cristina & Vandone, Daniela, 2011. "Impulsivity and household indebtedness: Evidence from real life," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 754-761.
    8. Akos Horvath & Benjamin S. Kay & Carlo Wix, 2021. "The COVID-19 Shock and Consumer Credit: Evidence from Credit Card Data," Finance and Economics Discussion Series 2021-008, Board of Governors of the Federal Reserve System (U.S.).
    9. Ismail Tijjani Idris & Sabri Nayan, 2016. "The Moderating Role of Loan Monitoring on the Relationship between Macroeconomic Variables and Non-performing Loans in Association of Southeast Asian Nations Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 402-408.
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    Cited by:

    1. Maximiliano Gómez Aguirre & Ariel David Krysa, 2023. "Consumer Loans Dynamics in 2020 in Argentina: An Approach Using Error Correction Models," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(81), pages 111-158, May.
    2. Izabella Lecka & Janusz Gudowski & Tomasz Wołowiec, 2022. "CSR in Poland and the Implementation of Sustainable Development Goals in the Energy Sector during the COVID-19 Pandemic," Energies, MDPI, vol. 15(19), pages 1-25, September.
    3. Cyprian Chwiałkowski & Adam Zydroń & Dariusz Kayzer, 2022. "Assessing the Impact of Selected Attributes on Dwelling Prices Using Ordinary Least Squares Regression and Geographically Weighted Regression: A Case Study in Poznań, Poland," Land, MDPI, vol. 12(1), pages 1-20, December.

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    Keywords

    households; COVID-19; consumer credit market; V4 countries;
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