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Anastasiou, DDrakos, K (2019). The Association Between Bank Credit Terms and Conditions and the Business Cycle in the Euro Area. Applied Economics Quarterly, 65(4), 247-256. https://doi.org/10.3790/aeq.65.4.247
Anastasiou, Dimitrios Drakos, KonstantinosAnastasiou, Dimitrios Drakos, Konstantinos (2019). "The Association Between Bank Credit Terms and Conditions and the Business Cycle in the Euro Area" Applied Economics Quarterly, vol. 65no. 4, 2019 pp. 247-256. https://doi.org/10.3790/aeq.65.4.247
Anastasiou, DDrakos, K (2019). The Association Between Bank Credit Terms and Conditions and the Business Cycle in the Euro Area. Applied Economics Quarterly, Vol. 65 (Issue 4), pp 247-256. https://doi.org/10.3790/aeq.65.4.247

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The Association Between Bank Credit Terms and Conditions and the Business Cycle in the Euro Area

Anastasiou, Dimitrios | Drakos, Konstantinos

Applied Economics Quarterly, Vol. 65 (2019), Iss. 4 : pp. 247–256

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Anastasiou, Dimitrios; Athens University of Economics and Business

Drakos, Prof. Konstantinos; Department of Accounting and Finance, Athens University of Economics and Business, 76 Pattision Street, 10434, Athens, Greece. Tel.: +30 (210) 8203461

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Abstract

Abstract

We explored the trajectory of bank loan terms and conditions over the business cycle, where the latter was decomposed into its long-run (trend) and short-run (cyclical) components. We found that deterioration of each business cycle component leads to a significant tightening of credit terms and conditions. We found mixed results concerning the symmetry of impacts of the short and long run components. Symmetry was found between the terms and conditions on loans for small vs. large enterprises. Our findings provide very useful information to policy makers and should be taken into consideration when monetary policies are designed.

Table of Contents

Section Title Page Action Price
Dimitrios Anastasiou / Konstantinos Drakos: The Association Between Bank Credit Terms and Conditions and the Business Cycle in the Euro Area 1
Abstract 1
1. Introduction 1
2. Empirical Methodology 2
3. Data Issues 3
4. Results 4
5. Conclusions 9
References 9