exclusively taken by individual borrowers. these loans account for around 10 % of total loans to households, and individuals with chf - denominated loans ( 75, 412 ) account for 2. 1 % of the total number of individual borrowers. for comparison, in poland, the number of chf borrowers exceeds 500, 000. the rationale behind the boom in chf lending during 2007 - 2008 is in close connection with the social factors. the chf borrowing costs were lower at the credit agreement date, which ensured easier access to lending for lower income borrowers, as well as larger loans for larger income borrowers. on the other hand, the unfavourable developments in the chf may have a major adverse impact on debtors ’ capacity to repay the loans. a simulation of the instalments of a standard loan in chf, ron and eur respectively, extended in december 2008, shows that : ( i ) at the credit agreement date, the monthly instalments on chf - denominated loans were lower compared with similar monthly instalments on loans granted in ron or eur, and ( ii ) the impact of the change in the exchange rate and / or the interest rate was stronger on chf loans than on those in the other currencies. the number of chf borrowers is on the decline ( by 31. 8 % in november 2014 compared with december 2008, i. e. by around 35, 200 ). the drop is due to loan repayment, loan conversion into another currency, their removal from the balance sheets or their sale. the number of chf borrowers fell at a faster rate compared with the household loan dynamics at aggregate level, the number of debtors moving down 15 % between december 2008 and november 2014. the number of chf loans witnessed a similar development. credit risk associated with chf - denominated loans is relatively higher compared with other currencies. in november 2014, the npl ratio on household loans in chf stood at around 12 % versus 9. 4 % for all foreign currency - denominated loans to households, yet the dynamics were similar to those of foreign currency - denominated loans overall. bis central bankers ’ speeches recent studies also identify heightened risks and correspondingly high costs associated with chf loans to unhedged borrowers at an international level, particularly in non - euro area countries. individuals with chf - denominated loans are not a homogeneous group

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