Study: Improving Housing Quality: Potential and Limitations of Borrower-Based Measures

08.06.2026.

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This study examines how borrower-based measures (BBMs) can be adapted to provide additional funding for housing-related energy efficiency investments without jeopardizing financial stability objectives. First, it demonstrates that lower energy costs and higher housing prices resulting from renovation allow for the easing of borrowing constraints while simultaneously keeping credit risk indicators unchanged. The authors then focused on three recent BBM relaxation measures implemented in Slovakia, Hungary, and Latvia, and assessed their effectiveness by conducting a bank survey. It was concluded that these policy changes did not significantly affect the risk profile of banks' credit portfolios and thus did not impact financial stability. Moreover, these changes did not result in a significant increase in loans for energy-efficient investments. It is suggested that BBMs adjustments be combined with other policy measures to improve energy efficiency in the real estate sector.

The full text of the study is available only in English