Foreign-Currency Loans and Systemic Risk in Europe

Before the onset of the financial crisis, European households and non-financial firms were borrowing heavily in lower-yielding foreign currencies to finance their home mortgages or business investments, even though they did not necessarily have a steady income in the currency concerned. Five years after the financial crisis, banks still hold a substantial amount of foreign [...] View the full post at: Foreign-Currency Loans and Systemic Risk in Europe Related posts: What Is Systemic Risk, Anyway? The Risk Aversion Crowd Still in Control of the Currency Markets Will the Fed Be in Charge of Systemic Risk?