Swiss Franc Lending in Europe
Journal
Aussenwirtschaft
ISSN
0004-8216
Type
journal article
Date Issued
2009-06-18
Author(s)
Abstract
This paper documents and characterises Swiss franc lending by banks domiciled in Europe (excl. Switzerland) to their non-bank clients. The role of the Swiss financial sector in refinancing this lending is also examined. Our estimates suggest that at the end of 2007, CHF 238 billion in Swiss franc denominated loans were outstanding in the euro area, and another CHF 122 billion in other European countries. We find that the type of borrower taking Swiss franc loans differs strongly across countries. While in Austria, Poland and Hungary almost all Swiss franc loans are extended as mortgages to domestic households, a substantial share of Swiss franc lending in Germany and Luxembourg is to non-resident enterprises. While the Swiss financial sector appears to be substantially involved in refinancing Swiss franc lending within the euro area, this is not the case outside the euro area.
Language
English
Keywords
Foreign currency borrowing
banking sector
mortgages
Swiss franc
HSG Classification
contribution to scientific community
Refereed
No
Publisher
Rüegger
Publisher place
Zürich
Volume
64
Number
2
Start page
167
End page
181
Pages
15
Subject(s)
Eprints ID
212832
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Swiss Franc Lending in Europe.pdf
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64.88 KB
Format
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