Determinants of Bank Lending: Lessons from Three European Countries

초록

This paper explores the determinants of bank lending to corporate using bank-level characteristics to investigate whether bank regulation can influence the amount of bank lending to corporate for three countries - France, Germany and Italy - for the period from 2011 to 2018. We try to identify factors that might be crucial in deciding the banks’ credit supply to corporate. Our empirical analysis suggests that bank regulation can significantly influence banks’ credit supply decisions and policy makers could improve the bank credit supply by altering regulations. However, such a policy would not have the same effect for foreign banks since their decisions area also subject to the economic conditions of the parent bank.

키워드