Stress-Testing Croatian Households with Debt : Implications for Financial Stability

The purpose of this paper is to stress test the resilience of Croatian households with debt to economic shocks. The shocks not only impact a household's welfare, but also increase the probability of loan default. As a result, there is a direct...

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Bibliographic Details
Main Authors:	Zalduendo, Juan, Sugawara, Naotaka
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ADVANCED ECONOMIES ARREARS ASSET CLASSES BALANCE SHEETS BANK OF ENGLAND BANKING ASSETS BANKING CRISES BANKING SECTOR BANKING SECTOR DEVELOPMENTS BANKING SYSTEM BANKING SYSTEM ASSETS BORROWER CENTRAL BANK CHECKS CONSUMER DURABLES CONSUMER LOANS CONSUMER PROTECTION CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES CONTRACTUAL OBLIGATIONS CORPORATE DEBT COURT NEGOTIATIONS CREDIT GROWTH CREDITOR CREDITORS CREDITWORTHINESS CROATIAN NATIONAL BANK CURRENCY COMPOSITION CURRENCY DISTRIBUTION DEBT DEBT HOLDINGS DEBT INSTRUMENT DEBT LEVELS DEBT OBLIGATIONS DEBT OVERHANG DEBT PROBLEMS DEBT RELIEF DEBT RESTRUCTURING DEBT SERVICE DEBT SERVICE BURDEN DEBT SERVICE OBLIGATIONS DEBT SERVICE PAYMENTS DEBT STOCK DEBTOR DEBTORS DEBTS DEFAULT RISKS DEPRECIATION DEVALUATION DISPOSABLE INCOME DISTORTIONS DOMESTIC CURRENCY DURABLE DURABLE GOODS ECONOMIC CONDITIONS ECONOMIC MODEL ECONOMIC SHOCK ECONOMIC SHOCKS EQUILIBRIUM ESTATE EURO EXCHANGE RATE EXCHANGE RATE EXCHANGE RATE REGIME EXCHANGE RATE SHOCK EXCHANGE RATES EXISTING DEBTS EXPENDITURE EXPENDITURES EXPOSURE FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL STABILITY FINANCIAL SUPPORT FIXED INTEREST FIXED INTEREST RATE FLEXIBLE INTEREST RATES FORECLOSURE FORECLOSURE PROCEDURES FOREIGN CURRENCY FOREIGN CURRENCY LOANS GENERAL EQUILIBRIUM GOVERNMENT GUARANTEES HIGH DEBT HOUSEHOLD DEBT HOUSEHOLD DEBTS HOUSEHOLD INCOME HOUSING HOUSING LOANS HOUSING PRICES IMPACT OF DEBT INCOME LEVELS INCOME SHOCKS INCOMES INCREASE IN DEBT INDEBTED INDEBTED HOUSEHOLDS INDEBTEDNESS INDICATOR VARIABLE INDIVIDUAL BANKS INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL FRAMEWORKS INTEREST DIFFERENTIALS INTEREST PAYMENTS INTEREST RATE ADJUSTMENTS INTEREST RATE DIFFERENTIALS INTEREST RATE SHOCK INTEREST RATES INTERNATIONAL BANK INTERNATIONAL STANDARD JUDGE LABOR FORCE LABOR MARKET LEVEL OF DEBT LEVEL OF RISK LEVELS OF DEBT LIVING STANDARD LIVING STANDARDS LOAN LOAN AMOUNTS LOAN DEFAULT LOAN ORIGINATION LOAN PORTFOLIO LOCAL CURRENCY LOCAL CURRENCY LOAN LOCAL CURRENCY LOANS LONG-TERM LOCAL CURRENCY MACROECONOMIC DATA MICRO DATA MONETARY FUND MONIES MORAL HAZARD MORTGAGE MORTGAGE DEBT MORTGAGES NATIONAL BANK OF HUNGARY NOMINAL DEVALUATION NON-PERFORMING LOANS NPL PENSIONS PERSONAL COMPUTER POSSESSION PRIVATE DEBT PRIVATE RESTRUCTURING PROBABILITY OF DEFAULT PROBLEM LOANS REAL ESTATE RECESSION REGIME CHOICE REGULATORY AUTHORITIES REGULATORY FORBEARANCE REGULATORY TREATMENT SAVINGS SHORT-TERM INTEREST RATES STANDARD DEVIATIONS STOCKS SVERIGES RIKSBANK SYSTEMIC BANKING CRISES TAX TOTAL DEBT TRANSITION COUNTRIES TYPE OF DEBT UNEMPLOYMENT RATE UNEMPLOYMENT RATES VARIABLE INTEREST RATE VARIABLE INTEREST RATES WEIGHTS
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111212114319 http://hdl.handle.net/10986/3675