Differences in eurozone countries’ financial sectors are important in determining whether banks advance fixed-rate or adjustable housing loans, a working paper from the European Central Bank finds.

In Fixed rate versus adjustable rate mortgages: evidence from euro area banks, Ugo Albertazzi, Fulvia Fringuellotti and Steven Ongena study data from 103 banks belonging to 73 different banking groups in 12 eurozone countries.

Bank funding, the authors note, occurs mostly at the group level. The