Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries
While the theoretical and empirical finance literature has focused almost exclusively on enterprise credit, about half of credit extended by banks to the private sector in a sample of 45 developing and developed countries is to households. The shar...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/07/9644801/gets-credit-matter-household-vs-firm-lending-across-countries http://hdl.handle.net/10986/6855 |
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okr-10986-6855 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCOUNTABILITY AGRICULTURE ASSET ALLOCATION AVERAGE COSTS BANK ACCESS BANK COMPETITION BANK CREDIT BANK LENDING BANK LOANS BANKING CRISIS BANKING MARKET BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BIASES BORROWER BORROWING BUSINESS CREDIT BUSINESS CYCLE BUSINESS LOANS CALCULATIONS CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMMON LAW COMPETITIVENESS CONSUMER CONSUMER CREDIT CONSUMER DEBT CONSUMER GOODS CONSUMER LENDING CONSUMER LOANS CONSUMER PRICE INDEX CONSUMERS CONTRACT ENFORCEMENT CORPORATE FINANCE CORRUPTION COUNTRY COMPARISONS CREDIT ACCESS CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT GROWTH CREDIT INCREASES CREDIT INFORMATION CREDIT INSTITUTIONS CREDIT MARKET CREDIT PROVISION CREDIT RATIONING CREDIT REGISTRIES CREDIT SCORING CREDIT SCORING MODELS CREDITOR CREDITORS CREDITS CURRENT INCOME DEBTOR DEFICITS DEPOSIT DEPOSIT INSURANCE DEPOSIT MONEY BANKS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISECONOMIES OF SCALE DISTRIBUTION OF CREDIT DISTRIBUTION OF INCOME DOMESTIC CREDIT DUMMY VARIABLES EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SECTORS ECONOMIC THEORY ECONOMIC TRENDS ECONOMICS EMERGING MARKETS ENDOGENOUS VARIABLES ENROLLMENT ENTERPRISE CREDIT ENTREPRENEURS ENTREPRENEURSHIP EQUILIBRIUM CREDIT EQUILIBRIUM CREDIT RATIONING EXOGENOUS VARIABLES EXPENDITURES EXPORTS EXTERNAL FINANCE FAMILIES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL LIABILITIES FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR INDICATORS FINANCIAL SECTOR POLICIES FINANCIAL SECTORS FINANCIAL SERVICE FINANCIAL STRUCTURE FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING NEEDS FINANCING SOURCES FIXED COST FOREIGN BANKS FOREIGN CURRENCY FOREIGN ENTRY FORMAL BANKING FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT EXPENDITURES GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROUP LENDING GROWTH RATE HOUSEHOLD FINANCE HOUSEHOLD LENDING HOUSEHOLDS HOUSING HUMAN CAPITAL INCOME DISTRIBUTION INCOME EFFECT INCOME LEVEL INCOMES INFLATION INFLATION RATE INFLATION RATES INFORMAL ECONOMY INFORMATION ASYMMETRIES INFORMATION SHARING INITIAL INVESTMENT INSTITUTIONAL DEVELOPMENT INTEREST PAYMENTS INTERNATIONAL BANK LACK OF ACCESS LARGE BUSINESS LARGE ENTERPRISES LAWS LEGAL SYSTEM LEGAL SYSTEM EFFICIENCY LENDER LENDERS LIFETIME LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CONTRACTS LOAN SIZE LOW INCOME MACROECONOMIC STABILITY MACROECONOMICS MARKET SHARE MARKET STRUCTURE MARKET VALUE MFI MFIS MICROCREDIT MICROFINANCE MORTGAGE MORTGAGE CREDIT MORTGAGE INTEREST MORTGAGE LOANS MORTGAGES OWNERSHIP STRUCTURE PERSONAL CREDIT POLITICAL ECONOMY POSITIVE EFFECTS PRIVATE CREDIT PRIVATE ENTERPRISES PRIVATE SECTOR CREDIT PRODUCTIVITY PROPRIETORSHIPS PUBLIC CREDIT PUBLIC POLICY REAL ESTATE REAL GDP REAL SECTOR REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY POLICIES REPAYMENT RESEARCH ASSISTANCE RISK MANAGEMENT SAVINGS SAVINGS RATE SECONDARY SCHOOL SECONDARY SCHOOLS SECURITIES SHARE OF CREDIT SMALL BUSINESS SMALL BUSINESS CREDIT SMALL ENTREPRENEURS STATE UNIVERSITY STOCK MARKET STOCK MARKETS SUBSIDIARIES TAX TAX INCENTIVES TAXABLE INCOME TAXATION TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TYPE OF LOAN URBAN AREAS URBAN POPULATION URBANIZATION VALUE ADDED |
| spellingShingle |
ACCESS TO CREDIT ACCOUNTABILITY AGRICULTURE ASSET ALLOCATION AVERAGE COSTS BANK ACCESS BANK COMPETITION BANK CREDIT BANK LENDING BANK LOANS BANKING CRISIS BANKING MARKET BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BIASES BORROWER BORROWING BUSINESS CREDIT BUSINESS CYCLE BUSINESS LOANS CALCULATIONS CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMMON LAW COMPETITIVENESS CONSUMER CONSUMER CREDIT CONSUMER DEBT CONSUMER GOODS CONSUMER LENDING CONSUMER LOANS CONSUMER PRICE INDEX CONSUMERS CONTRACT ENFORCEMENT CORPORATE FINANCE CORRUPTION COUNTRY COMPARISONS CREDIT ACCESS CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT GROWTH CREDIT INCREASES CREDIT INFORMATION CREDIT INSTITUTIONS CREDIT MARKET CREDIT PROVISION CREDIT RATIONING CREDIT REGISTRIES CREDIT SCORING CREDIT SCORING MODELS CREDITOR CREDITORS CREDITS CURRENT INCOME DEBTOR DEFICITS DEPOSIT DEPOSIT INSURANCE DEPOSIT MONEY BANKS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISECONOMIES OF SCALE DISTRIBUTION OF CREDIT DISTRIBUTION OF INCOME DOMESTIC CREDIT DUMMY VARIABLES EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SECTORS ECONOMIC THEORY ECONOMIC TRENDS ECONOMICS EMERGING MARKETS ENDOGENOUS VARIABLES ENROLLMENT ENTERPRISE CREDIT ENTREPRENEURS ENTREPRENEURSHIP EQUILIBRIUM CREDIT EQUILIBRIUM CREDIT RATIONING EXOGENOUS VARIABLES EXPENDITURES EXPORTS EXTERNAL FINANCE FAMILIES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL LIABILITIES FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR INDICATORS FINANCIAL SECTOR POLICIES FINANCIAL SECTORS FINANCIAL SERVICE FINANCIAL STRUCTURE FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING NEEDS FINANCING SOURCES FIXED COST FOREIGN BANKS FOREIGN CURRENCY FOREIGN ENTRY FORMAL BANKING FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT EXPENDITURES GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROUP LENDING GROWTH RATE HOUSEHOLD FINANCE HOUSEHOLD LENDING HOUSEHOLDS HOUSING HUMAN CAPITAL INCOME DISTRIBUTION INCOME EFFECT INCOME LEVEL INCOMES INFLATION INFLATION RATE INFLATION RATES INFORMAL ECONOMY INFORMATION ASYMMETRIES INFORMATION SHARING INITIAL INVESTMENT INSTITUTIONAL DEVELOPMENT INTEREST PAYMENTS INTERNATIONAL BANK LACK OF ACCESS LARGE BUSINESS LARGE ENTERPRISES LAWS LEGAL SYSTEM LEGAL SYSTEM EFFICIENCY LENDER LENDERS LIFETIME LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CONTRACTS LOAN SIZE LOW INCOME MACROECONOMIC STABILITY MACROECONOMICS MARKET SHARE MARKET STRUCTURE MARKET VALUE MFI MFIS MICROCREDIT MICROFINANCE MORTGAGE MORTGAGE CREDIT MORTGAGE INTEREST MORTGAGE LOANS MORTGAGES OWNERSHIP STRUCTURE PERSONAL CREDIT POLITICAL ECONOMY POSITIVE EFFECTS PRIVATE CREDIT PRIVATE ENTERPRISES PRIVATE SECTOR CREDIT PRODUCTIVITY PROPRIETORSHIPS PUBLIC CREDIT PUBLIC POLICY REAL ESTATE REAL GDP REAL SECTOR REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY POLICIES REPAYMENT RESEARCH ASSISTANCE RISK MANAGEMENT SAVINGS SAVINGS RATE SECONDARY SCHOOL SECONDARY SCHOOLS SECURITIES SHARE OF CREDIT SMALL BUSINESS SMALL BUSINESS CREDIT SMALL ENTREPRENEURS STATE UNIVERSITY STOCK MARKET STOCK MARKETS SUBSIDIARIES TAX TAX INCENTIVES TAXABLE INCOME TAXATION TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TYPE OF LOAN URBAN AREAS URBAN POPULATION URBANIZATION VALUE ADDED Beck, Thorsten Büyükkarabacak, Berrak Rioja, Felix Valev, Neven Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries |
| relation |
Policy Research Working Paper No. 4661 |
| description |
While the theoretical and empirical
finance literature has focused almost exclusively on
enterprise credit, about half of credit extended by banks to
the private sector in a sample of 45 developing and
developed countries is to households. The share of household
credit in total credit increases as countries grow richer
and financial systems develop. Cross-country regressions,
however, suggest a positive and significant impact on gross
domestic product per capita growth only of enterprise but
not household credit. These two findings together partly
explain why previous studies have found a small or
insignificant effect of finance on growth in high-income
countries. In addition, countries with a lower share of
manufacturing, a higher degree of urbanization, and more
market-oriented financial systems have a higher share of
household credit. It is thus mostly socio-economic trends
that determine credit composition, while policies
influencing banking market structure and regulatory policies
are not robustly related to credit composition. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Beck, Thorsten Büyükkarabacak, Berrak Rioja, Felix Valev, Neven |
| author_facet |
Beck, Thorsten Büyükkarabacak, Berrak Rioja, Felix Valev, Neven |
| author_sort |
Beck, Thorsten |
| title |
Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries |
| title_short |
Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries |
| title_full |
Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries |
| title_fullStr |
Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries |
| title_full_unstemmed |
Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries |
| title_sort |
who gets the credit? and does it matter? household vs. firm lending across countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/07/9644801/gets-credit-matter-household-vs-firm-lending-across-countries http://hdl.handle.net/10986/6855 |
| _version_ |
1764400986437189632 |
| spelling |
okr-10986-68552021-04-23T14:02:32Z Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries Beck, Thorsten Büyükkarabacak, Berrak Rioja, Felix Valev, Neven ACCESS TO CREDIT ACCOUNTABILITY AGRICULTURE ASSET ALLOCATION AVERAGE COSTS BANK ACCESS BANK COMPETITION BANK CREDIT BANK LENDING BANK LOANS BANKING CRISIS BANKING MARKET BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BIASES BORROWER BORROWING BUSINESS CREDIT BUSINESS CYCLE BUSINESS LOANS CALCULATIONS CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMMON LAW COMPETITIVENESS CONSUMER CONSUMER CREDIT CONSUMER DEBT CONSUMER GOODS CONSUMER LENDING CONSUMER LOANS CONSUMER PRICE INDEX CONSUMERS CONTRACT ENFORCEMENT CORPORATE FINANCE CORRUPTION COUNTRY COMPARISONS CREDIT ACCESS CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT GROWTH CREDIT INCREASES CREDIT INFORMATION CREDIT INSTITUTIONS CREDIT MARKET CREDIT PROVISION CREDIT RATIONING CREDIT REGISTRIES CREDIT SCORING CREDIT SCORING MODELS CREDITOR CREDITORS CREDITS CURRENT INCOME DEBTOR DEFICITS DEPOSIT DEPOSIT INSURANCE DEPOSIT MONEY BANKS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISECONOMIES OF SCALE DISTRIBUTION OF CREDIT DISTRIBUTION OF INCOME DOMESTIC CREDIT DUMMY VARIABLES EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SECTORS ECONOMIC THEORY ECONOMIC TRENDS ECONOMICS EMERGING MARKETS ENDOGENOUS VARIABLES ENROLLMENT ENTERPRISE CREDIT ENTREPRENEURS ENTREPRENEURSHIP EQUILIBRIUM CREDIT EQUILIBRIUM CREDIT RATIONING EXOGENOUS VARIABLES EXPENDITURES EXPORTS EXTERNAL FINANCE FAMILIES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL LIABILITIES FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR INDICATORS FINANCIAL SECTOR POLICIES FINANCIAL SECTORS FINANCIAL SERVICE FINANCIAL STRUCTURE FINANCIAL STUDIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING NEEDS FINANCING SOURCES FIXED COST FOREIGN BANKS FOREIGN CURRENCY FOREIGN ENTRY FORMAL BANKING FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT EXPENDITURES GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROUP LENDING GROWTH RATE HOUSEHOLD FINANCE HOUSEHOLD LENDING HOUSEHOLDS HOUSING HUMAN CAPITAL INCOME DISTRIBUTION INCOME EFFECT INCOME LEVEL INCOMES INFLATION INFLATION RATE INFLATION RATES INFORMAL ECONOMY INFORMATION ASYMMETRIES INFORMATION SHARING INITIAL INVESTMENT INSTITUTIONAL DEVELOPMENT INTEREST PAYMENTS INTERNATIONAL BANK LACK OF ACCESS LARGE BUSINESS LARGE ENTERPRISES LAWS LEGAL SYSTEM LEGAL SYSTEM EFFICIENCY LENDER LENDERS LIFETIME LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CONTRACTS LOAN SIZE LOW INCOME MACROECONOMIC STABILITY MACROECONOMICS MARKET SHARE MARKET STRUCTURE MARKET VALUE MFI MFIS MICROCREDIT MICROFINANCE MORTGAGE MORTGAGE CREDIT MORTGAGE INTEREST MORTGAGE LOANS MORTGAGES OWNERSHIP STRUCTURE PERSONAL CREDIT POLITICAL ECONOMY POSITIVE EFFECTS PRIVATE CREDIT PRIVATE ENTERPRISES PRIVATE SECTOR CREDIT PRODUCTIVITY PROPRIETORSHIPS PUBLIC CREDIT PUBLIC POLICY REAL ESTATE REAL GDP REAL SECTOR REGRESSION ANALYSIS REGULATORY FRAMEWORK REGULATORY POLICIES REPAYMENT RESEARCH ASSISTANCE RISK MANAGEMENT SAVINGS SAVINGS RATE SECONDARY SCHOOL SECONDARY SCHOOLS SECURITIES SHARE OF CREDIT SMALL BUSINESS SMALL BUSINESS CREDIT SMALL ENTREPRENEURS STATE UNIVERSITY STOCK MARKET STOCK MARKETS SUBSIDIARIES TAX TAX INCENTIVES TAXABLE INCOME TAXATION TRANSACTION TRANSACTION COSTS TRANSITION ECONOMIES TYPE OF LOAN URBAN AREAS URBAN POPULATION URBANIZATION VALUE ADDED While the theoretical and empirical finance literature has focused almost exclusively on enterprise credit, about half of credit extended by banks to the private sector in a sample of 45 developing and developed countries is to households. The share of household credit in total credit increases as countries grow richer and financial systems develop. Cross-country regressions, however, suggest a positive and significant impact on gross domestic product per capita growth only of enterprise but not household credit. These two findings together partly explain why previous studies have found a small or insignificant effect of finance on growth in high-income countries. In addition, countries with a lower share of manufacturing, a higher degree of urbanization, and more market-oriented financial systems have a higher share of household credit. It is thus mostly socio-economic trends that determine credit composition, while policies influencing banking market structure and regulatory policies are not robustly related to credit composition. 2012-06-01T15:25:12Z 2012-06-01T15:25:12Z 2008-07 http://documents.worldbank.org/curated/en/2008/07/9644801/gets-credit-matter-household-vs-firm-lending-across-countries http://hdl.handle.net/10986/6855 English Policy Research Working Paper No. 4661 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 |