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Will West European Banks Affect Monetary Control?
Credit and Capital Markets – Kredit und Kapital, Vol. 35 (2002), Iss. 1 : pp. 54–72
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Manfred Borchert, Münster
References
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Abstract
The objective of this study is to analyze the business direction of the largest European banks in order to extract possible impacts regarding the efficacy of monetary control. In a cross-section analysis (using data of the largest 51 European banks) the influencing variables for granting loans by banks have been correlated, followed by a factor analysis (a) of balance sheet items in order to extract the importance of asset items, and (b) of income statements in order to extract the importance of off-balance items. As a result, loans will be refinanced increasingly by items not under monetary control. (JEL E44, G21)