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Bank Lending and the European Debt Crisis: Evidence from a New Survey

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  • Andrea Orame

    (Bank of Italy)

Abstract

I study the supply of credit in Italy in the years 2009–14, covering the European sovereign debt crisis period. By using a new survey, I find that 40 percent of the decline in business lending originates from the tightening of bank credit standards, with a significant change in 2011 and a seemingly greater role for supply in the South of the country. The unique regional breakdown and the wider cross-section of the new survey also improve our understanding of the variation in the data and reveal substantial differences between banks.

Suggested Citation

  • Andrea Orame, 2023. "Bank Lending and the European Debt Crisis: Evidence from a New Survey," International Journal of Central Banking, International Journal of Central Banking, vol. 19(1), pages 243-300, March.
    • Handle: RePEc:ijc:ijcjou:y:2023:q:1:a:5
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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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