Foreign banks favor long-term foreign currency loans, impacting household borrowing choices.
The study looked at loans in different currencies in countries in Europe. They found that people often choose foreign currency loans for long-term borrowing, and banks are more likely to give large and long-term loans in foreign currency. In some countries, foreign-owned banks have more foreign currency loans, but in others, it's similar to local currency loans. Overall, foreign-owned banks didn't give out more foreign currency loans than domestic banks.