The Shift in Bank Credit Allocation: New Data and New Findings

59 Pages Posted: 27 Jun 2017

See all articles by Dirk J. Bezemer

Dirk J. Bezemer

University of Groningen

Anna SamarIna

De Nederlandsche Bank

Lu Zhang

Utrecht University

Date Written: June 5, 2017

Abstract

In this paper we present a new data set on bank credit in four categories: home mortgages, consumer credit, bank loans to non-bank financials, and loans to non-financial business, for 74 economies over 1990–2013. We offer a full description of sources and methods of data collection and construction and comparisons with adjacent data sets. We document key trends including the shift in bank credit allocation away from traditional business lending. The literature suggests substantial consequences of this 'debt shift' for growth, income distribution and macroeconomic resilience, which motivated this data construction. A second contribution is to analyze drivers of debt shift in fixed-effects and system-GMM regressions for the full sample and separately for advanced and emerging economies. We find that debt shift is larger in advanced economies with a stronger presence of foreign banks and higher trade. Financial deregulation strongly correlates with debt shift.

Keywords: credit allocation, business lending, household mortgage

JEL Classification: E44, E51, G21

Suggested Citation

Bezemer, Dirk J. and SamarIna, Anna and Zhang, Lu, The Shift in Bank Credit Allocation: New Data and New Findings (June 5, 2017). De Nederlandsche Bank Working Paper No. 559. Available at SSRN: https://ssrn.com/abstract=2992621 or http://dx.doi.org/10.2139/ssrn.2992621

Dirk J. Bezemer (Contact Author)

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

Anna SamarIna

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Lu Zhang

Utrecht University ( email )

Vredenburg 138
Utrecht, 3511 BG
Netherlands

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