Bank Lending Dynamics in Bulgaria

Petar Peshev ()

Economic Alternatives, 2014, issue 2, 20-29

Abstract: This paper analyzes factors for the dynamics of bank loans of non-financial firms and households in Bulgaria in the 2008-2012 period. Following a short introduction, credit demand factors are presented and analyzed first, followed by an analysis of general credit dynamics and of credit supply factors. The pre-crisis double-digit growth of bank loans extended to the non-financial companies and households was induced by strong external and internal demand and by enormous capital inflows. In the post-2008 period a process of deleveraging took place, a period of modest lending because of the weakness in demand factors. Namely, poor economic recovery was the main driver of the non-performing loans uptrend, which harmed the credit supply process.

Keywords: crisis; bank credit; bank credit demand; bank credit supply (search for similar items in EconPapers)
JEL-codes: E32 E44 E51 E58 (search for similar items in EconPapers)
Date: 2014
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