Loans to Euro Area Households in the Period of Restrictive Lending Policy of Banks and Non-standard Eurosystem Activities

Abstract

Theoretical background: The article presents the problem of the diversity of euro area countries in terms of lending to households by banks, in the context of restrictive lending policy and the non-standard measures taken by the Eurosystem to liberalize it. Limited availability of loans for the non-financial sector and its negative economic effects were the result of the global financial crisis.

Purpose of the article: The aim of the study is to analyze the development of loans to households in the euro area in the period from August 2007 to December 2018. It was important to assess their variability in time and spatial differentiation in two sub-periods – the financial crisis with continuing destabilization financial market and non-standard ECB solutions aimed at reviving banks’ lending activities.

Research methods: The study used figures related to the credit institutions’ sector receivables and household sector indebtedness for loans in individual euro area countries. The characteristics of local conditions in the area of examined loans were based on selected descriptive statistics, and the taxonomic method was used to identify their similarity.

Main findings: The results of the survey showed significant heterogeneity of the euro area countries in terms of the features of the household loan market in both periods of the survey. However, analyzing the changes taking place showed that their direction was consistent in most Member States.