Housing Finance in the Euro Area

97 Pages Posted: 17 Apr 2009

See all articles by Francesco Drudi

Francesco Drudi

European Central Bank (ECB)

Petra Koehler

European Central Bank (ECB)

Christoffer Kok

European Central Bank (ECB)

Guido Wolswijk

European Central Bank (ECB)

Elmar Stoess

Deutsche Bundesbank

Karin Wagner

Oesterreichische Nationalbank

Harri Hasko

Bank of Finland - Monetary Policy

Nico Valckx

International Monetary Fund (IMF)

Laura Bartiloro

Bank of Italy

Paolo Emilio Mistrulli

Bank of Italy

Marco Protopapa

European Central Bank (ECB)

Jiri Slacalek

European Central Bank (ECB)

Marie-Denise Zachery

National Bank of Belgium

Nicola Doyle

affiliation not provided to SSRN

Yannis Asimakopoulos

Bank of Greece

Vasilis Georgakopoulos

Bank of Greece

José R. Pages

affiliation not provided to SSRN

Jorge Martínez-Pagés

Banco de España

Daniel Gabrielli

Banque de France

Silvia Magri

Bank of Italy

Christiana Argyridou

Central Bank of Cyprus

Romain Weber

Banque Centrale du Luxembourg

Wendy Zammit

Central Bank of Malta

Gerbert Hebbink

De Nederlandsche Bank

Nuno Ribeiro

Bank of Portugal - Economic Research Department

Vesna Lukovic

Bank of Slovenia

Gavin Doheny

European Central Bank (ECB)

RamÌn GÌmez-Salvador

European Central Bank (ECB)

Ruth Magano

European Central Bank (ECB)

Zoltan Walko

Oesterreichische Nationalbank (OeNB)

Maria Kasselaki

affiliation not provided to SSRN

Date Written: March 31, 2009

Abstract

This report analyses the main developments in housing finance in the euro area in the decade, covering the period from 1999 to 2007. It looks at mortgage indebtedness, various characteristics of loans for house purchase, the funding of such loans and the spreads between the interest rates on loans granted by banks and the interest rates banks had to pay on their funding, or the return they made on alternative investments. In addition, the report contains a comparison of key aspects of housing finance in the euro area with those in the United Kingdom and the United States. At the end, the report briefly discusses aspects of the transmission of monetary policy to the economy.

Keywords: bank competition, bank funding, bankruptcy, banks, cost of funding (of banks), cost of housing loans, debt service, ECB monetary policy, foreclosure, household debt, household survey, housing finance, insolvency, loan maturity, loan-to-value ratio, monetary policy transmission, mortgage

JEL Classification: D14, E44, E5, G21, R21

Suggested Citation

Drudi, Francesco and Koehler, Petra and Kok, Christoffer and Wolswijk, Guido and Stoess, Elmar and Wagner, Karin and Hasko, Harri and Valckx, Nico and Bartiloro, Laura and Mistrulli, Paolo Emilio and Protopapa, Marco and Slacalek, Jiri and Zachery, Marie-Denise and Doyle, Nicola and Asimakopoulos, Yannis and Georgakopoulos, Vasilis and Pages, José R. and Martínez Pagés, Jorge and Gabrielli, Daniel and Magri, Silvia and Argyridou, Christiana and Weber, Romain and Zammit, Wendy and Hebbink, Gerbert and Ribeiro, Nuno and Lukovic, Vesna and Doheny, Gavin and GÌmez-Salvador, RamÌn and Magano, Ruth and Walko, Zoltan and Kasselaki, Maria, Housing Finance in the Euro Area (March 31, 2009). ECB Occasional Paper No. 101. Available at SSRN: https://ssrn.com/abstract=1325202

Francesco Drudi (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Petra Koehler

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Christoffer Kok

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Guido Wolswijk

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Elmar Stoess

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
P.O.B. 10 06 02
D-60431 Frankfurt/Main
Germany

Karin Wagner

Oesterreichische Nationalbank ( email )

Otto-Wagner Platz 3
POB 61
Vienna 1011
Austria

Harri Hasko

Bank of Finland - Monetary Policy ( email )

PO Box 160
00101 Helsinki
Finland

Nico Valckx

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

HOME PAGE: http://www.imf.org

Laura Bartiloro

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Paolo Emilio Mistrulli

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Marco Protopapa

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Jiri Slacalek

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Marie-Denise Zachery

National Bank of Belgium

Brussels, B-1000
Belgium

Nicola Doyle

affiliation not provided to SSRN

Yannis Asimakopoulos

Bank of Greece

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

Vasilis Georgakopoulos

Bank of Greece

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

José R. Pages

affiliation not provided to SSRN

Jorge Martínez Pagés

Banco de España ( email )

Madrid 28014
Spain

Daniel Gabrielli

Banque de France

Paris
France

Silvia Magri

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Christiana Argyridou

Central Bank of Cyprus ( email )

80 Kennedy Ave
1076 Nicosia
Cyprus

Romain Weber

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Wendy Zammit

Central Bank of Malta

Garrison Chapel
Castille Place
Valletta
Malta

Gerbert Hebbink

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Nuno Ribeiro

Bank of Portugal - Economic Research Department ( email )

R. do Ouro, 27
Lisboa, 1100-150
Portugal

Vesna Lukovic

Bank of Slovenia ( email )

Slovenska cesta 35
Slovenija, 1505
Slovenia

Gavin Doheny

European Central Bank (ECB)

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

RamÌn GÌmez-Salvador

European Central Bank (ECB) ( email )

Kaiserstrasse 29
D-60311 Frankfurt am Main
Germany

Ruth Magano

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Zoltan Walko

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3, PO Box 61
Vienna,
1010 Vienna, A-1011
Austria

Maria Kasselaki

affiliation not provided to SSRN

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