Economics at your fingertips  

Covid-19: Bank credit conditions and monetary policy

David Byrne, Sarah Holton and Conor Parle ()
Additional contact information
Sarah Holton: Central Bank of Ireland

No 05/EL/20, Economic Letters from Central Bank of Ireland

Abstract: The Bank Lending Survey indicates that credit conditions remained relatively stable in the first quarter of 2020, but changes are coming. On the supply side, banks expect to tighten lending criteria in the second quarter of the year. Credit demand from households is expected to weaken substantially. Banks expect increased demand for short-term loans from firms, but less demand for long-term loans, reflecting liquidity needs of businesses and the downturn in investment prospects. Banks expect that monetary policy measures, that provide liquidity support and ease financing conditions, will support their balance sheets, which can help stabilise credit supply to the real economy.

Date: 2020-05
New Economics Papers: this item is included in nep-ban
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... -parle).pdf?sfvrsn=4 (application/pdf)

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:

Access Statistics for this paper

More papers in Economic Letters from Central Bank of Ireland Contact information at EDIRC.
Bibliographic data for series maintained by Fiona Farrelly ().

Page updated 2023-06-01
Handle: RePEc:cbi:ecolet:05/el/20