The Global Financial Crisis and the Bank Lending Channel

Emerging Asia ◽  
2011 ◽  
pp. 91-98
Author(s):  
M. Shahidul Islam
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Bank Lending ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
The Global Financial Crisis

Determinants of Bank Lending in Europe and the United States

2018 ◽  
Author(s):  
Brunella Bruno ◽  
Alexandra D'Onofrio ◽  
Immacolata Marino
Keyword(s):  
United States ◽  
Global Financial Crisis ◽  
Bank Lending ◽  
The United States ◽  
Bank Lending Channel ◽  
Loan Portfolio ◽  
Government Bonds ◽  
Lending Channel ◽  
Main Bank ◽  
The Global Financial Crisis

We provide a comprehensive analysis of the main drivers of bank lending in Europe and the United States over the period from 2008 to 2014. We relate bank characteristics prior to the global financial crisis to their lending behaviour during and after the crisis period. Our analysis confirms the existence of a bank lending channel, that seems stronger in Europe than in the United States, especially if we look at corporate loans rather than at the whole loan portfolio. We uncover that the main bank characteristics affecting lending are size, capitalization, liquidity, and ownership structure, as well as, to a lesser extent, reliance on deposits and exposure to government bonds. Some of these factors have indeed shielded bank lending as predicted, but the results are not always in the expected direction, which points to the existence of a revised version of the traditional bank lending channel.

scholarly journals Determinants of failure in Greek manufacturing SMEs

2017 ◽  
Vol 14 (3) ◽  
pp. 45-55 ◽  
Author(s):  
Efthalia Tabouratzi ◽  
Christos Lemonakis ◽  
Alexandros Garefalakis
Keyword(s):  
Financial Crisis ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Global Financial Crisis ◽  
Manufacturing Sector ◽  
Bank Lending ◽  
Policy Implications ◽  
Z Score ◽  
The Government ◽  
The Global Financial Crisis

The globalization and the global financial crisis provide a new extremely competitive environment for small and medium sized enterprises (SMEs). During the latest years, the increased number of firms’ default has generated the need of understanding the factors of firms’ default, as SMEs in periods of financial crisis suffer from lack of financial resources and expensive bank lending. We use a sample of 3600 Greek manufacturing firms (9 Sectors), covering the time period of 2003-2011 (9 years). We run a panel regression model with correction for fixed effects in both the cross-section and period dimensions using as dependent variable the calculated Z-Score of each firm, and as independent variables several financial ratios, as well as the exporting activity and the use of International Financial Reporting Standards (IFRS Accounting Standards).We find that firms presenting higher performance in terms of ROA and sales and higher leverage levels that enhance their liquidity as well are healthier in terms of Z-score than their less profitable counterparts and acquire lower rates of probability of default: in other words, less risk. The results of the study can lead to policy implications for both Managers and the Government in order to enhance the growth of Greek manufacturing sector.

scholarly journals Financial Intermediation and Macroeconomic Analysis

2010 ◽  
Vol 24 (4) ◽  
pp. 21-44 ◽  
Author(s):  
Michael Woodford
Keyword(s):  
Financial Crisis ◽  
Financial Intermediation ◽  
Bank Lending ◽  
Bank Lending Channel ◽  
Reserve Requirements ◽  
Lending Channel ◽  
Policy Responses ◽  
Macroeconomic Analysis ◽  
Credit Frictions ◽  
Recent Financial Crisis

Understanding phenomena such as the recent financial crisis, and possible policy responses, requires the use of a macroeconomic framework in which financial intermediation matters for the allocation of resources. Neither standard macroeconomic models that abstract from financial intermediation nor traditional models of the “bank lending channel” are adequate as a basis for understanding the recent crisis. Instead we need models in which intermediation plays a crucial role, but in which intermediation is modeled in a way that better conforms to current institutional realities. In particular, we need models that recognize that a market-based financial system—one in which intermediaries fund themselves by selling securities in competitive markets, rather than collecting deposits subject to reserve requirements—is not the same as a frictionless system. I sketch the basic elements of an approach that allows financial intermediation and credit frictions to be integrated into macroeconomic analysis in a straightforward way. I show how the model can be used to analyze the macroeconomic consequences of the recent financial crisis and conclude with a discussion of some implications of the model for the conduct of monetary policy.

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