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Are Bank Credit Standards Affected by the Business Cycle? Evidence from the Euro Area
Anastasiou, Dimitrios | Drakos, Konstantinos | Giannoulakis, Stylianos
Applied Economics Quarterly, Vol. 64 (2018), Iss. 1 : pp. 5–16
4 Citations (CrossRef)
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Anastasiou, Dimitrios, Ph.D. candidate, Department of Accounting and Finance, Athens University of Economics and Business.
Drakos, Konstantinos, Associate Professor, Department of Accounting and Finance, Athens University of Economics and Business. Postal Address: 76 Patission reet, 10434, Athens, Greece.
Giannoulakis, Stylianos, Ph.D. candidate, Department of Economics, Athens University of Economics and Business.
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Perceived vs Actual Financial Crisis and Bank Credit Standards: Is There Any Indication of Self-Fulfilling Prophecy?
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Post-financial crisis times: Only a short phase of re-intermediation and re-direction to boring banking business models? Regulatory burden, fintech competition and concentration processes
Schackmann-Fallis, Karl-Peter | Weiss, MirkoVierteljahrshefte zur Wirtschaftsforschung, Vol. 87 (2018), Iss. 4 P.87
https://doi.org/10.3790/vjh.87.4.87 [Citations: 2] -
The Association Between Bank Credit Terms and Conditions and the Business Cycle in the Euro Area
Anastasiou, Dimitrios | Drakos, KonstantinosApplied Economics Quarterly, Vol. 65 (2019), Iss. 4 P.247
https://doi.org/10.3790/aeq.65.4.247 [Citations: 0] -
Perceived vs actual financial crisis and bank credit standards: Is there any indication of self-fulfilling prophecy?
Anastasiou, Dimitrios | Bragoudakis, Zacharias | Giannoulakis, SteliosResearch in International Business and Finance, Vol. 58 (2021), Iss. P.101486
https://doi.org/10.1016/j.ribaf.2021.101486 [Citations: 4]
Abstract
Abstract
The purpose of this study is to investigate the link between bank credit standards (CS hereafter) and business cycle fluctuations. This is the first empirical study which attempts to examine whether business cycle affects bank CS. We use quarterly survey-data on CS taken from the Bank Lending Survey from 2003Q1 to 2016Q1, for 14 Euro-area countries. We find that business cycle and GDP growth trend exert a negative influence on CS, and thus business cycle and trend are two major drivers of the tightening or easing of the CS. We also find that the two components (cyclical and trend) of the real GDP decomposition affect in a symmetric way CS. Moreover, symmetry of impacts was found between the CS and the business cycle and trend for large vs. small firms. Our findings could be helpful for both the European bank regulatory authorities and for the banks’ loan officers when they are designing macroprudential policies.
JEL classifications: E30, E32, E44, G21
Keywords: credit standards, business cycle, bank lending survey, loan supply
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Dimitrios Anastasiou / Konstantinos Drakos / Stylianos Giannoulakis: Are Bank Credit Stand\nards Affected by the Business Cycle? Evidence from the Euro Area | 1 | ||
| Abstract | 1 | ||
| 1. Introduction | 1 | ||
| 2. Literature Review | 2 | ||
| 2.1 A Brief Literature Review on the Interplay Between Banks’ Activity and the Business cycle | 2 | ||
| 2.2 A Brief Literature Review on Credit Standards | 3 | ||
| 3. Data and Variables | 4 | ||
| 4. Econometric Methodology | 7 | ||
| 5. Estimation Results | 9 | ||
| 6. Conclusions | 1 | ||
| References | 1 |