Determinants of Long-Term Versus Short-Term Bank Credit in EU Countries

47 Pages Posted: 20 Apr 2016

See all articles by Haelim Anderson

Haelim Anderson

Government of the United States of America – Federal Deposit Insurance Corporation

Claudia Ruiz Ortega

World Bank - Development Research Group (DECRG)

Thierry Tressel

International Monetary Fund (IMF) - Research Department

Date Written: October 8, 2015

Abstract

This paper empirically examines the determinants of credit at different maturities across European Union countries during the last decade. The paper documents the lengthening of maturities since the early 2000s, and whether these patterns were driven by similar factors in advanced countries and in emerging market countries. Before the 2008 crisis, long-term credit expanded faster than short-term credit in most countries in the sample, and contracted less than short-term credit after 2008. The paper finds that domestic deposits and foreign liabilities were more important sources of funding in emerging market countries than in advanced countries. Moreover, trade openness and initial banking sector depth matter more for emerging market countries than for advanced countries.

Keywords: Economic Insecurity

Suggested Citation

Anderson, Haelim and Ruiz Ortega, Claudia and Tressel, Thierry, Determinants of Long-Term Versus Short-Term Bank Credit in EU Countries (October 8, 2015). World Bank Policy Research Working Paper No. 7436. Available at SSRN: https://ssrn.com/abstract=2671568

Haelim Anderson (Contact Author)

Government of the United States of America – Federal Deposit Insurance Corporation ( email )

550 17th Street NW
Washington, DC 20429
United States

Claudia Ruiz Ortega

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, NW
Washington, DC 20433
United States

Thierry Tressel

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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