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 driv...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/10/25132200/determinants-long-term-versus-short-term-bank-credit-eu-countries http://hdl.handle.net/10986/22858 |
| Summary: | 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. |
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