Arbeitspapier

Lending conditions in EU: The role of credit demand and supply

We analyse the bank lending activity after the financial crisis and focus on bank-specific supply factors. Using a rich microeconomic dataset from Bankscope and macroeconomic shocks data, we employ OLS and 2SLS fixed effects models with banking controls, macroeconomic shocks and institutional quality. The banks' loan-rate spreads increased despite the recent policy of low interest rates and quantitative easing. We use the bank asset quality as instruments to capture exogenous changes in loan supply. The empirical evidence shows that loan-rate spread and through this the supply of loans is negatively affected by a low asset quality and capital ratios.

Language
Englisch

Bibliographic citation
Series: IOS Working Papers ; No. 362

Classification
Wirtschaft
Central Banks and Their Policies
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Subject
bank lending
loans
financial vulnerability
loan-rate spreads
institutions
macroeconomic shocks

Event
Geistige Schöpfung
(who)
Kapounek, Svatopluk
Kučerová, Zuzana
Fidrmuc, Jarko
Event
Veröffentlichung
(who)
Leibniz-Institut für Ost- und Südosteuropaforschung (IOS)
(where)
Regensburg
(when)
2017

Handle
URN
urn:nbn:de:101:1-201703141156
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kapounek, Svatopluk
  • Kučerová, Zuzana
  • Fidrmuc, Jarko
  • Leibniz-Institut für Ost- und Südosteuropaforschung (IOS)

Time of origin

  • 2017

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