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

See all articles by Dimitrios Anastasiou

Dimitrios Anastasiou

Alpha Bank; Athens University of Economics and Business, School of Business, Department of Accounting and Finance

Konstantinos Drakos

Athens University of Economics and Business - Department of Accounting and Finance

Date Written: November 5, 2019

Abstract

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

Anastasiou, Dimitrios and Drakos, Konstantinos, A Note on Bank Loan Officers’ Expectations for Credit Standards: Evidence from the European Bank Lending Survey (November 5, 2019). 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., Available at SSRN: https://ssrn.com/abstract=3481056

Dimitrios Anastasiou (Contact Author)

Alpha Bank ( email )

Athens, 16561
Greece

Athens University of Economics and Business, School of Business, Department of Accounting and Finance ( email )

76 Patission Street
GR-104 34 Athens
Greece

Konstantinos Drakos

Athens University of Economics and Business - Department of Accounting and Finance ( email )

76 Patission Street
GR-104 34 Athens
Greece

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