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Determinants of Bank Lending

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  • Thi Hong Hanh Pham

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

This article aims to empirically investigate the determinants of bank credit by using a large data set covering 146 countries at different levels of economic development over the period 1990-2013. We find evidence of the country specific effect of economic growth on bank credit. Our empirical results also suggest that the health of domestic banking system plays a relevant role in boosting bank lending. By contrast, the dependence on foreign capital inflows of a country can make its domestic banking sector more vulnerable to external shock and then to face credit boom-bust cycles.

Suggested Citation

  • Thi Hong Hanh Pham, 2015. "Determinants of Bank Lending," Working Papers hal-01158241, HAL.
    • Handle: RePEc:hal:wpaper:hal-01158241
    Note: View the original document on HAL open archive server: https://hal.science/hal-01158241
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    Keywords

    Bank credit; monetary policy; panel analysis;
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