Determinants of long‐ versus short‐term bank credit in EU countries

Abstract

This paper empirically examines the determinants of credit at different maturities across countries of the European Union during the last decade. We document the lengthening of maturities since the early 2000s and whether these patterns were driven by similar factors in advanced and emerging market economies. Before the 2008 crisis, long-term credit expanded faster than shortterm credit in most countries of our sample and contracted less than short-term credit after 2008. We find that foreign liabilities were more important sources of funding in emerging market countries than in advanced economies. In addition, aggregate demand mattered less for credit extension to firms in emerging market countries than in advanced countries.

International financial reporting standards, domestic debt finance and institutional quality: Evidence from developing countries

“…Further, by examining the consequences of IFRS at the macroeconomic level, we provide evidence on how accounting contributes to the economic development of a country, an area that has been largely neglected in the accounting literature. Our study also complements prior studies such as those by Bahadir and Valev (2019) and Anderson, Ruiz-Ortega, and Tressel (2017) on factors that influence the lending behaviour of banks.…”

Have European banks maintained their payout policy during the crisis? The role of scrip dividends

“…Thus, our sample can be considered as sufficiently representative of the European bank landscape. The combination of cross‐section and time series data gives a final sample of 395 observations, a sample size comparable to other studies on the banking sector (Almaqtari, Al‐Homaidi, Tabash, & Farhan, 2019; Anderson, Ruiz‐Ortega, & Tressel, 2017; Echevarria‐Icaza & Sosvilla‐Rivero, 2018; Kusi & Opoku‐Mensah, 2018; Loaba & Zahonogo, 2019; Lobão, Pacheco, & Campos, 2019; Ofori‐Sasu, Mensah, Akuma, & Doku, 2019; Salih, Ghecham, & Al‐Barghouthi, 2019). Data regarding the balance sheet and market prices were obtained from the Thomson Reuters Eikon database.…”

“…Thus, our sample can be considered as sufficiently representative of the European bank landscape. The combination of cross-section and time series data gives a final sample of 395 observations, a sample size comparable to other studies on the banking sector (Almaqtari, Al-Homaidi, Tabash, & Farhan, 2019;Anderson, Ruiz-Ortega, & Tressel, 2017 Porta et al (2000aPorta et al ( , 2000b, updated by Djankov, McLiesh, and Shleifer (2007). Information on the capital stringency index was obtained from Barth and Caprio (2013) and the World Bank databases (Kaufmann, Kraay, & Mastruzzi, 2011).…”