The Association Between Bank Credit Terms and Conditions and the Business Cycle in the Euro Area

Dimitris Anastasiou and Konstantinos Drakos

Applied Economics Quarterly (formerly: Konjunkturpolitik), 2019, vol. 65, issue 4, 247-256

Abstract: We explored the trajectory of bank loan terms and conditions over the business cycle, where the latter was decomposed into its long-run (trend) and short-run (cyclical) components. We found that deterioration of each business cycle component leads to a significant tightening of credit terms and conditions. We found mixed results concerning the symmetry of impacts of the short and long run components. Symmetry was found between the terms and conditions on loans for small vs. large enterprises. Our findings provide very useful information to policy makers and should be taken into consideration when monetary policies are designed.

Keywords: credit terms and conditions; business cycle; bank lending survey (search for similar items in EconPapers)
JEL-codes: E30 E32 E44 G21 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.3790/aeq.65.4.247 (application/pdf)
Access to full text is restricted to subscribers (2008 onwards); Pay-per-view access from https://elibrary.duncker-humblot.com/journals/aeq (2008 onwards) and http://www.genios.de (2008 onwards)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dah:aeqaeq:v65_y2019_i4_q4_p247-256

Ordering information: This journal article can be ordered from
https://www.duncker-humblot.de/zeitschriften/aeq

Access Statistics for this article

Applied Economics Quarterly (formerly: Konjunkturpolitik) is currently edited by Cinzia Alcidi, Christian Dreger and Daniel Gros

More articles in Applied Economics Quarterly (formerly: Konjunkturpolitik) from Duncker & Humblot GmbH, Berlin
Bibliographic data for series maintained by E-Publishing-Team ().