How will Basel II Affect Bank Lending to Emerging Markets? An Analysis Based on German Bank Level Data

Are firms more resilient to systemic banking crises in economies with higher levels of social trust? Using firm-level data in 34 countries from 1990 through 2011, we find that liquidity-dependent firms in high-trust countries obtain more trade credit and suffer smaller drops in profits and employment during banking crises than similar firms in low-trust economies. The results are consistent with the view that when banking crises block the normal bank-lending channel, greater social trust facilitates access to informal finance, cushioning the effects of these crises on corporate profits and employment.

Download Full-text

Fine-tuning Principles of Bank Lending for Emerging Markets

Emerging Market Bank Lending and Credit Risk Control ◽

10.1016/b978-0-12-803438-5.00022-2 ◽

2016 ◽

pp. 377-389

Author(s):

Leo Onyiriuba

Keyword(s):

Emerging Markets ◽

Bank Lending ◽

Fine Tuning

Download Full-text

What influences bank lending in Saudi Arabia?

Islamic Economic Studies ◽

10.1108/ies-07-2019-0018 ◽

2020 ◽

Vol 27 (2) ◽

pp. 125-155

Author(s):

Ken Miyajima

Keyword(s):

Saudi Arabia ◽

Private Sector ◽

Balance Sheet ◽

Oil Prices ◽

Bank Lending ◽

Policy Implications ◽

Content Type ◽

Balance Sheets ◽

Level Data ◽

Bank Balance Sheets

PurposeDeterminants of credit growth in Saudi Arabia are investigated.Design/methodology/approachA panel approach is applied to macroeconomic and bank-level data spanning 2000 ‐15.FindingsBank lending is supported by strong bank balance sheet conditions (high capital ratio, and growth of NPL provisioning and deposits), and higher growth of both oil prices and non-oil private sector GDP. Lower bank concentration also helps, likely through greater competition, so does stronger institution. Consistent with the literature, lending by Islamic banks may be more responsive to economic activity. Lending remained robust in 2015 despite oil prices having declined, helped by strong bank balance sheets and as banks reduced their holdings of “excess liquidity”. To support bank lending in the period ahead, bank balance sheets need to remain strong. Fiscal adjustment and a reduced reliance on banks to finance the budget deficit would support credit provision to the private sector.Originality/valueThe paper is first to analyze in detail determinants of bank lending in Saudi Arabia applying a panel approach to bank level data, and draws critical policy implications.

Download Full-text

Is there a bank-lending channel of monetary policy in Greece? Evidence from bank-level data

Monetary Policy Transmission in the Euro Area ◽

10.1017/cbo9780511492372.022 ◽

2003 ◽

pp. 309-322 ◽

Cited By ~ 9

Author(s):

S. N. Brissimis ◽

N. C. Kamberoglou ◽

G. T. Simigiannis

Keyword(s):

Monetary Policy ◽

Bank Lending ◽

Bank Lending Channel ◽

Lending Channel ◽

Level Data

Download Full-text

Credit Scoring in SME Asset-Backed Securities: An Italian Case Study

Journal of Risk and Financial Management ◽

10.3390/jrfm12020089 ◽

2019 ◽

Vol 12 (2) ◽

pp. 89 ◽

Cited By ~ 1

Author(s):

Andrea Bedin ◽

Monica Billio ◽

Michele Costola ◽

Loriana Pelizzon

Keyword(s):

Small And Medium Enterprises ◽

Credit Scoring ◽

Bank Lending ◽

Default Probability ◽

Loss Distribution ◽

Recovery Rates ◽

Italian Case ◽

Level Data ◽

Asset Backed Securities ◽

Medium Enterprises

We investigate the default probability, recovery rates and loss distribution of a portfolio of securitised loans granted to Italian small and medium enterprises (SMEs). To this end, we use loan level data information provided by the European DataWarehouse platform and employ a logistic regression to estimate the company default probability. We include loan-level default probabilities and recovery rates to estimate the loss distribution of the underlying assets. We find that bank securitised loans are less risky, compared to the average bank lending to small and medium enterprises.

Download Full-text

A microanalysis of trade finance: German bank entry and coffee exports in Brazil, 1880–1913

European Review of Economic History ◽

10.1093/ereh/hez006 ◽

2019 ◽

Vol 24 (2) ◽

pp. 356-389

Author(s):

Wilfried Kisling

Keyword(s):

Historical Perspective ◽

Credit Constraints ◽

Original Data ◽

Firm Level ◽

Data Set ◽

Trade Finance ◽

German Bank ◽

Level Data ◽

Economic Studies ◽

Bank Entry

Abstract The trade-finance nexus has enjoyed increasing interest in recent economic studies, but empirical evidence is scarce and studies from a historical perspective seem missing. This study analyses the effect of German bank entry on Brazilian coffee exports between 1880 and 1913 using firm-level data. I create an original data set on the yearly quantities of exported coffee and the credit received from the German Brasilianische Bank für Deutschland by export houses in Brazil. Using a difference-in-difference approach, I find that Brasilianische eased previously existing credit constraints, and that companies financed by Brasilianische exported significantly more than those that were not.

Download Full-text

The roles of domestic and foreign Islamic banks in Malaysian monetary transmission

International Journal of Islamic and Middle Eastern Finance and Management ◽

10.1108/imefm-11-2011-0084 ◽

2014 ◽

Vol 7 (2) ◽

pp. 161-169 ◽

Cited By ~ 1

Author(s):

Fidlizan Muhammad ◽

Asmak Ab Rahman ◽

Ahmad Azam Sulaiman

Keyword(s):

Monetary Policy ◽

Banking System ◽

Bank Lending ◽

Islamic Banking ◽

Islamic Banks ◽

Bank Lending Channel ◽

Content Type ◽

Lending Channel ◽

Level Data ◽

Loan Supply

Purpose – The aim of this paper is to empirically test the presence of the bank lending channel for the Islamic banking system in Malaysia. Design/methodology/approach – Distributional effects from monetary policy changes were analyzed by three bank characteristics such as size, liquidity and capital. Using the econometric model by Kashyap and Stein (1995), the implementation of a policy contraction leads to reduction in loan supply because some banks may not able to offset a reduction in deposits. The paper explores the response shown between domestic and foreign Islamic banks in Malaysia using bank-level data from 2005 to 2010. Findings – The empirical result indicates presence of the bank lending channel in the Islamic banking system in Malaysia, size and liquidity as sources of difference response of financing supply in domestic bank and capital for foreign Islamic bank and Islamic interbank rate as an efficient tool in conducting monetary policy especially in the Islamic banking system. Originality/value – The paper manages to explore the effectiveness of Islamic the monetary policy tools in the Islamic Banking system in Malaysia. Using Islamic interbank rate as a policy tool, it provides valuable view to policy makers, who are analyzing for efficiency of transmission channel.

Download Full-text