IDEAS home Printed from https://ideas.repec.org/h/nbp/nbpchp/2-3.html
   My bibliography  Save this book chapter

FX mortgages, housing boom and financial stability – a case study for Poland (2005-2015)

In: Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis - 2015 edition

Author

Listed:
  • Jacek Łaszek
  • Hanna Augustyniak
  • Krzysztof Olszewski

Abstract

Poland underwent a quick transition of the economy, but its housing market and housing policy did not change quick enough. The economic growth that followed the EU accession lead to a rising housing demand, which was fuelled by quite cheap FX denominated mortgages. Those allowed many households to satisfy their housing needs quite quickly, but combined with an insufficient housing supply lead to a price boom, that was followed by oversupply. As the housing needs started to be met, the oversupply lead to falling house prices, which in real terms reached pre-boom levels. The recent global and European economic turmoil made the Polish currency depreciate. The effect was very strong when the SNB abandoned the EUR CHF peg and some mortgage takers found themselves under water. Still the majority of the mortgage takers made a good deal and the banking sector remained stable. We present a case study, explain how the FX lending emerged and how we managed to stay safe.

Suggested Citation

  • Jacek Łaszek & Hanna Augustyniak & Krzysztof Olszewski, 2016. "FX mortgages, housing boom and financial stability – a case study for Poland (2005-2015)," Chapters from NBP Conference Publications, in: Hanna Augustyniak & Jacek Łaszek & Krzysztof Olszewski & Joanna Waszczuk (ed.), Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis - 2015 edition, chapter 3, pages v1, 87-10, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpchp:2-3
    as

    Download full text from publisher

    File URL: https://static.nbp.pl/publikacje/materialy-i-studia/243_en1.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Świerczyńska Marta & Węglińska Mariola, 2017. "The attractiveness of FX housing loans for housholds in view of supervisory actions in selected EU countries," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(4), pages 37-53, December.

    More about this item

    Keywords

    Housing market cycles; housing finance; FX market;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbp:nbpchp:2-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jakub Growiec (email available below). General contact details of provider: https://edirc.repec.org/data/nbpgvpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.