US partisan conflict uncertainty and households' access to bank credit: Evidence from UK survey data

Nicholas Apergis (), Arusha Cooray and Mobeen Ur Rehman

Global Finance Journal, 2023, vol. 56, issue C

Abstract: This paper explores how US political uncertainty, stemming from partisan conflict, affects UK households' access to bank credit. Using data from a unique UK survey database and the US news-based Partisan Conflict Index developed by Azzimonti (2018), the findings document that US partisan policy uncertainty negatively affects UK households' access to loans and credit cards. Banks' increased caution on deal selection also appears to be an underlying channel through which partisan political uncertainty can affect lending activities. Further evidence suggests that this partisan uncertainty also increases loan interest rates.

Keywords: US partisan conflict index; UK households' access to bank credit; Survey data (search for similar items in EconPapers)
JEL-codes: D14 E43 G18 G21 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:56:y:2023:i:c:s1044028322000461

DOI: 10.1016/j.gfj.2022.100744

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