Arbeitspapier
Evergreening in the Euro Area: Facts and explanation
Since the beginning of the financial crisis in 2007/8, new lending in the Euro-Area has slowed sharply and the old loans experienced "evergreening," i.e. bad loans have been rolled over rather than being liquidated. Even though ameliorating evergreening is key to promote lending for new investment projects and growth, no systematic evergreening measures exist. In this paper, we propose a new cross-country evergreening index and develop a model to explain why evergreening may reflect the incentives of regulators to forebear. Our evergreening index is based on a survey we designed, and was administered by the ifo institute to about 1,000 experts in over 80 countries. We bring the model to the data using a heteroscedastic probit model and find that evergreening is higher in: (i) Euro-Area countries than in the rest of the world; (ii) in countries facing bank distress; and (iii) is highest in countries which experience banking distress and are members of the Euro Area. These results are consistent with our theoretical model.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 113
- Klassifikation
-
Wirtschaft
International Monetary Arrangements and Institutions
International Institutional Arrangements
Central Banks and Their Policies
- Thema
-
Evergreening
Central bank credit
Survey data
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Steinkamp, Sven
Tornell, Aaron
Westermann, Frank
- Ereignis
-
Veröffentlichung
- (wer)
-
Osnabrück University, Institute of Empirical Economic Research
- (wo)
-
Osnabrück
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Steinkamp, Sven
- Tornell, Aaron
- Westermann, Frank
- Osnabrück University, Institute of Empirical Economic Research
Entstanden
- 2018
Ähnliche Objekte (12)
Some stylised facts on the euro area business cycle
New facts on consumer price rigidity in the euro area
New facts on consumer price rigidity in the euro area
New facts on consumer price rigidity in the euro area
New Facts on Consumer Price Rigidity in the Euro Area
Have euro area and EU economic governance worked? Just the facts
Boom-Bust Cycles in Middle Income Countries: Facts and Explanation
Price setting in the euro area: some stylised facts from individual producer price data
Price setting in the euro area: some stylised facts from individual producer price data
Price setting in the euro area: some stylised facts from individual producer price data
Capital and labour (mis)allocation in the euro area: some stylized facts and determinants
Price setting in the euro area: Some stylized facts from Individual Consumer Price Data
Some stylised facts on the euro area business cycle
New facts on consumer price rigidity in the euro area
New facts on consumer price rigidity in the euro area
New facts on consumer price rigidity in the euro area
New Facts on Consumer Price Rigidity in the Euro Area
Have euro area and EU economic governance worked? Just the facts
Boom-Bust Cycles in Middle Income Countries: Facts and Explanation
Price setting in the euro area: some stylised facts from individual producer price data
Price setting in the euro area: some stylised facts from individual producer price data
Price setting in the euro area: some stylised facts from individual producer price data
Capital and labour (mis)allocation in the euro area: some stylized facts and determinants
Price setting in the euro area: Some stylized facts from Individual Consumer Price Data
Some stylised facts on the euro area business cycle
New facts on consumer price rigidity in the euro area
New facts on consumer price rigidity in the euro area
New facts on consumer price rigidity in the euro area
New Facts on Consumer Price Rigidity in the Euro Area
Have euro area and EU economic governance worked? Just the facts
Boom-Bust Cycles in Middle Income Countries: Facts and Explanation
Price setting in the euro area: some stylised facts from individual producer price data
Price setting in the euro area: some stylised facts from individual producer price data
Price setting in the euro area: some stylised facts from individual producer price data
Capital and labour (mis)allocation in the euro area: some stylized facts and determinants