A "Credit Crunch"?: The Recent Slowdown in Bank Lending and Its Implications for Monetary Policy

Paul Francis O'Brien and Frank Browne
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Paul Francis O'Brien: OECD
Frank Browne: OECD

No 107, OECD Economics Department Working Papers from OECD Publishing

Abstract: This paper examines the recent slowdown in bank lending that has affected several large OECD countries. The analysis begins with a description of the importance of bank credit in the financial systems of the countries considered. The origins of the lending slowdown are analysed - - including the importance of deteriorating bank balance sheets and the BIS capital rules - - as well as its potential to depress economic activity. The paper concludes with a discussion of how monetary policy should react to unusually sluggish bank lending ... Cette étude analyse le ralentissment récent du crédit bancaire dans plusieurs grands pays de l'OCDE. Elle décrit tout d'abord l'importance du crédit bancaire dans les systèmes financiers des pays considérés. Les facteurs à l'origine de la contraction du crédit sont ensuite passés en revue, notamment la dégradation des bilans bancaires ainsi que l'incidence des ratios de capital plus stricts imposés par les banques centrales. L'étude tente d'apprécier, en outre, dans quelle mesure ces facteurs pourraient exercer une influence négative sur l'activité économique. Enfin, l'étude examine la façon dont la politique monétaire devrait réagir à ce ralentissement inhabituel de l'expansion du crédit ...

Date: 1992-01-01
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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:107-en

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