Shocks to bank capital position: Do they matter for lending to firms and how they are channelled? Evidence from Senior Loan Officer Opinion Survey for Poland

Ewa Wróbel ()

No 336, NBP Working Papers from Narodowy Bank Polski

Abstract: Basing on data from bank lending surveys, we show that shocks to capital position are an important driver of bank lending standards, terms and conditions. Standards for small and medium-sized enterprises are affected more than those for large entities. Shocks to capital are channelled to firms mostly through these terms and conditions which are related to loan price: average spreads and spreads on riskier loans. The third mostly used channel is required collateral. Adverse shocks to capital position result in a lower lending, in particular for real property acquisition and for financing working capital and on current account.

Keywords: bank capital; bank lending survey; structural VAR. (search for similar items in EconPapers)
JEL-codes: E44 E51 G21 (search for similar items in EconPapers)
Pages: 47
Date: 2021
New Economics Papers: this item is included in nep-ban, nep-mac and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpmis:336

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