We study the impact of monetary policy on the supply of bank credit when bank lending is also denominated in foreign … currencies. Accessing a comprehensive supervisory dataset from Hungary, we find that the supply of bank credit in a foreign …. Changes in foreign monetary conditions similarly affect bank lending more in the foreign than in the domestic currency. Hence …

conditions not only affect the supply of credit in volume, but also in its currency and risk composition. Hence, we establish a … "bank-lending-to-households" channel of monetary policy that is heterogeneous. While the availability of foreign currency … mortgages weakens the domestic bank-lending channel overall, weakly capitalized domestic banks relying on swap transactions for …

We analyze the differential impact of domestic and foreign monetary policy on the local supply of bank credit in … domestic and foreign currencies. We analyze a novel, supervisory dataset from Hungary that records all bank lending to firms …