Determinants of Bank Lending

Thi Hong Hanh Pham (1)

1 LEMNA - Laboratoire d'économie et de management de Nantes Atlantique

This article aims to empirically investigate the determinants of bank credit by using a large data set covering 146 countries at different levels of economic development over the period 1990-2013. We find evidence of the country specific effect of economic growth on bank credit. Our empirical results also suggest that the health of domestic banking system plays a relevant role in boosting bank lending. By contrast, the dependence on foreign capital inflows of a country can make its domestic banking sector more vulnerable to external shock and then to face credit boom-bust cycles.

Mots clés: Bank credit; monetary policy; panel analysis

Domaines: Economies et finances; Gestion et management

Thi Hong Hanh Pham. Determinants of Bank Lending. 2015. ⟨hal-01158241⟩