Corporate Net Lending: A Review of Recent Trends

Posted: 1 Jun 2010 Last revised: 3 Jun 2010

See all articles by Christophe Andre

Christophe Andre

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Stephanie Guichard

affiliation not provided to SSRN

Mike Kennedy

affiliation not provided to SSRN

David Turner

affiliation not provided to SSRN

Date Written: December 11, 2007

Abstract

Since 2001, OECD corporate net lending has risen sharply. This paper examines the main forces at play behind this run-up and provides some insight into whether and how they might possibly unwind in the future, a process that may already be underway. It shows in particular that, the increase is partly temporary with some of it likely to fade with the cycle and the ongoing adjustments in the financial and housing sectors. On the other hand, part of the increase reflects structural changes in corporate behaviour and in their environment and is likely to persist. The paper also points to cross-country differences reflecting, for example, the role of competiveness in Japan and continental Europe, and of the financial sector in the United Kingdom.

Keywords: corporate net lending, corporate investment, corporate saving, financial corporations

JEL Classification: E21, E22, F21, G30

Suggested Citation

Andre, Christophe and Guichard, Stephanie and Kennedy, Mike and Turner, David, Corporate Net Lending: A Review of Recent Trends (December 11, 2007). Available at SSRN: https://ssrn.com/abstract=1618206

Christophe Andre (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France

Stephanie Guichard

affiliation not provided to SSRN ( email )

Mike Kennedy

affiliation not provided to SSRN ( email )

David Turner

affiliation not provided to SSRN ( email )

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