A Note on Bank Loan Officers’ Expectations for Credit Standards: Evidence from the European Bank Lending Survey
Anastasiou, D., & Drakos, K. (2019). A note on bank loan officers' expectations for credit standards: E vidence from the E uropean bank lending survey. International Journal of Finance & Economics, 24(1), 49-53.
12 Pages Posted: 17 Jan 2020
Date Written: November 5, 2019
We employ quarterly credit standards data from the Bank Lending Survey, covering 14 EU countries for the period 2003Q1-2016Q1. By linking consecutive surveys and utilizing loan officers’ responses regarding actual and expected credit standards, we set out to investigate which expectations formation mechanism best describes loan officers’ expectations. According to our findings, bank loan officers’ expectations are compatible with the Adaptive Expectations mechanism.
Keywords: adaptive expectations; bank lending survey; credit standards; random effects; survey‐based expectations
JEL Classification: C33, C53, D84
Suggested Citation: Suggested Citation