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...

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Main Authors:	Park, Haelim, Ruiz, Claudia, Tressel, Thierry
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
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 http://hdl.handle.net/10986/22858

id	okr-10986-22858
recordtype	oai_dc
spelling	okr-10986-228582021-04-23T14:04:11Z Determinants of Long-Term versus Short-Term Bank Credit in EU Countries Park, Haelim Ruiz, Claudia Tressel, Thierry 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 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. 2015-11-05T15:26:31Z 2015-11-05T15:26:31Z 2015-10 Working Paper 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 English en_US Policy Research Working Paper;No. 7436 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia European Union
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	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
spellingShingle	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 Park, Haelim Ruiz, Claudia Tressel, Thierry Determinants of Long-Term versus Short-Term Bank Credit in EU Countries
geographic_facet	Europe and Central Asia European Union
relation	Policy Research Working Paper;No. 7436
description	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.
format	Working Paper
author	Park, Haelim Ruiz, Claudia Tressel, Thierry
author_facet	Park, Haelim Ruiz, Claudia Tressel, Thierry
author_sort	Park, Haelim
title	Determinants of Long-Term versus Short-Term Bank Credit in EU Countries
title_short	Determinants of Long-Term versus Short-Term Bank Credit in EU Countries
title_full	Determinants of Long-Term versus Short-Term Bank Credit in EU Countries
title_fullStr	Determinants of Long-Term versus Short-Term Bank Credit in EU Countries
title_full_unstemmed	Determinants of Long-Term versus Short-Term Bank Credit in EU Countries
title_sort	determinants of long-term versus short-term bank credit in eu countries
publisher	World Bank, Washington, DC
publishDate	2015
url	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
_version_	1764452249567756288

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

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