Determinants of Long-Term versus Short-Term Bank Credit in EU Countries

This paper empirically examines the determinants of credit at different maturities across European Union countries during the last decade. The paper documents the lengthening of maturities since the early 2000s, and whether these patterns were driven by similar factors in advanced countries and in emerging market countries. Before the 2008 crisis, long-term credit expanded faster than short-term credit in most countries in the sample, and contracted less than short-term credit after 2008. The paper finds that domestic deposits and foreign liabilities were more important sources of funding in emerging market countries than in advanced countries. Moreover, trade openness and initial banking sector depth matter more for emerging market countries than for advanced countries.

Bibliographic Details

Main Authors:	Park, Haelim, Ruiz, Claudia, Tressel, Thierry
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-10
Subjects:	CREDIT MARKETS, MONETARY POLICY, DEPOSIT, CAPITAL MARKETS, FINANCIAL SERVICES, MARKET COUNTRIES, LINES OF CREDIT, ECONOMIC GROWTH, EQUIPMENT, WAREHOUSE, DEPOSITS, FINANCIAL DEEPENING, FINANCING, INTEREST, LAWS, CREDIT AVAILABILITY, INTEREST RATE, PRIVATE CREDIT, EXCHANGE, BANKING SYSTEM, CURRENT EXPENDITURES, SERVICES, DEVELOPING COUNTRIES, BANKING SYSTEMS, MATURITY STRUCTURE, CAPITAL STRUCTURES, EXCLUSION, HOUSING, CAPITAL STRUCTURE, MORTGAGE, INFORMATION SHARING, LOAN, PROJECTS, FINANCIAL INTEGRATION, BANKRUPTCY, INFLATION, INTERNATIONAL BANK, CREDITOR, INFORMATION ASYMMETRIES, LENDER, EMERGING MARKET ECONOMIES, BANK LENDING, MATURITY, ECONOMIC ACTIVITY, EMERGING MARKET COUNTRIES, INTERNATIONAL FINANCE, SAVINGS, ECONOMIC CRISES, CONTRACT ENFORCEMENT, FIXED INVESTMENTS, ADVANCED ECONOMIES, TERMS OF BANK LOANS, OVERDRAFTS, CREDIT BUREAUS, UNION, BOOM-BUST CYCLES, PRODUCTIVITY, INTEREST RATES, BANK DEBT, EMERGING MARKET, FINANCIAL INSTITUTIONS, MARKETS, DEBT, FINANCIAL CRISES, LOAN MATURITY, FINANCIAL REFORMS, LOANS, ENTERPRISES, BANK CREDIT, BANK FINANCING, FINANCE, TERM CREDIT, MARKET ECONOMIES, BANKING SECTOR, BANKS, INFORMATION ASYMMETRY, RATING AGENCIES, DEBT FINANCING, EMERGING MARKETS, PROPERTY RIGHT, CAPITAL, FINANCIAL STABILITY, BANKING CRISIS, FINANCIAL CRISIS, SUPPLY OF CREDIT, COMMERCIAL PAPER, BANK, EUROPEAN CENTRAL BANK, CREDIT, MACROECONOMICS, WORKING CAPITAL, EXPENDITURES, CREDIT INFORMATION, CAPITAL FLOWS, PROPERTY, FOREIGN BANKS, HOUSING PRICES, BALANCE SHEET, MARKET, MONETARY POLICIES, TREASURY, CREDIT FLOWS, GOVERNANCE, INFLATION RATES, FINANCIAL SECTOR ASSESSMENT, INFORMATION ON CREDIT, BANK LOAN, BANK LOANS, FINANCIAL DEVELOPMENT, INVESTMENT, RISK, HOUSEHOLDS, BALANCE SHEETS, COLLATERAL, FINANCIAL MARKETS, CREDIT LEVELS, BANKING, LOAN AMOUNTS, LOAN CONTRACTS, BORROWING, INVESTMENTS, LENDING, EXTERNAL FINANCING, TRANSITION ECONOMIES, MATURITIES, EXCHANGE RATE, FINANCIAL SYSTEMS, LIABILITIES, GOVERNMENTS, LONG-TERM LOANS, CREDIT INSTITUTIONS, CREDIT LINES, ECONOMIC CONDITIONS, ENFORCEABILITY OF CONTRACTS, ECONOMIES, MFI, DEBT MATURITY,
Online Access:	http://documents.worldbank.org/curated/en/2015/10/25132200/determinants-long-term-versus-short-term-bank-credit-eu-countries https://hdl.handle.net/10986/22858
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