Economic Policy Uncertainty Effects on Credit and Stability of Financial Institutions
6 Pages Posted: 5 May 2020
Date Written: July 2019
Abstract
We examine policy‐related economic uncertainty effects on the availability of credit, non‐performing loans and loan loss provisions using a panel of 18 countries. We provide significant evidence that uncertainty reduces the availability of credit while leading to increases in banks' non‐performing loans and loan loss provisions, distorting sectoral stability. Our findings are economically meaningful.
Keywords: economic policy uncertainty, financial depth, financial institutions, non‐performing loans, provisions
JEL Classification: C22, C23, D81, E51
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Economic Policy Uncertainty Effects on Credit and Stability of Financial Institutions
This is a Wiley-Blackwell Publishing paper. Wiley-Blackwell Publishing charges $42.00 .
File name: BOER.pdf
Size: 0K
If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity.
