Determinants of Bank Credit in Emerging Market Economies

Stepanyan, Vahram; Guo, Kai

doi:10.5089/9781455218035.001

Cited by 53 publications

(28 citation statements)

References 2 publications

(2 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In light of this result, one can say that liquidity surpluses encourage banks to offer a variety of lending products. This finding is consistent with Ahmed et al (2009); Ivanović (2016); Stepanyan and Guo (2011) where they found a strong positive relationship between the rise in banks liquidity and increase in consumer loans. 2.…”

Section: Long-run Elasticitysupporting

confidence: 91%

“…The authors found that interest rate has a positive effect, while unemployment rate exerts a negative impact on consumer lending. Stepanyan and Guo (2011) investigated the relationship between macroeconomic activities and consumer loans in Middle Eastern and North African countries using quarterly data. The study concluded that GDP growth has a positive effect on consumer lending.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Macroeconomic Determinants of Consumer Lending in Saudi Arabia

Alnefaee

2019

Journal of Accounting, Business and Finance Research

View full text Add to dashboard Cite

This paper empirically investigates the macroeconomic variables that influence consumer lending in Saudi Arabia using quarterly data for the period of 1996-2017. The Johansen and Juselius (1990) multivariate cointegration test were used to examine the impact of banks liquidity, interest rate, oil prices and GDP per capita on consumer lending. The test results indicate the existence of the long-term relationship and the empirical results show that consumer lending is positively influenced by a change in banks liquidity, growth in oil prices and GDP per capita. Contrary to expectation, the interest rate was positive and significant. The modified Granger causality test in Error Correction Model framework reports bidirectional causality from banks liquidity to consumer lending and vice versa, while unidirectional causality from GDP per capita and interest rate to consumer lending. The main finding of the paper is to encourage the monetary authority to allow for a gradual phase-out of restrictions on the number of personal loans as well as enhancing consumer protection mechanism to prohibit unfair contractual terms in the agreements.

show abstract

Section: Long-run Elasticitysupporting

confidence: 91%

Section: Literature Reviewmentioning

confidence: 99%

Macroeconomic Determinants of Consumer Lending in Saudi Arabia

Alnefaee

2019

Journal of Accounting, Business and Finance Research

View full text Add to dashboard Cite

show abstract

“…First, it speaks to a growing literature on the determinants of bank credit growth to the private nonfinancial sector, particularly in EMEs. Stepanyan and Guo () find that domestic deposit growth and non‐resident liability growth contribute to credit growth. They also find that stronger economic growth, higher inflation, and loose domestic and global monetary policies tend to increase domestic credit availability in the EMEs.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Likewise, we interact the growth of non‐resident liabilities with the four‐period‐lagged share of non‐resident liabilities to private sector total credit ( Shr NRL c , t − 4 ). As explained by Stepanyan and Guo (), weighting the domestic and foreign funding variables by their respective shares helps control for the overall importance of these types of funding within a country.…”

Section: Empirical Specificationmentioning

confidence: 99%

Determinants of long‐ versus short‐term bank credit in EU countries

2017

View full text Add to dashboard Cite

This paper empirically examines the determinants of credit at different maturities across countries of the European Union during the last decade. We document the lengthening of maturities since the early 2000s and whether these patterns were driven by similar factors in advanced and emerging market economies. Before the 2008 crisis, long-term credit expanded faster than shortterm credit in most countries of our sample and contracted less than short-term credit after 2008. We find that foreign liabilities were more important sources of funding in emerging market countries than in advanced economies. In addition, aggregate demand mattered less for credit extension to firms in emerging market countries than in advanced countries.

show abstract

“…The impact of capital and the size of banks on lending banks is expected to be positive. While GDP is expected to be positive and inflation is expected to be negative on lending banks (Bebczuk et al, 2011;Stepanyan & Guo, 2011;Pontines & Siregar, 2012;Silalahi, Wibowo, & Nurlian, 2012;Allen, Jackowicz, & Kowalewski, 2013;Cull & Pería, 2013;De Haas & Van Lelyveld, 2014).…”

Section: |mentioning

confidence: 99%

The Global Economic Crisis and Its Impact on Bank Lending in Indonesia

Yudaruddin

2017

Jurnal Keuangan Dan Perbankan

View full text Add to dashboard Cite

This study examined the impact of the crisis on bank lending in Indonesia. The crisis was also interacted with profitability and liquidity to see the impact of profitability and liquidity during the global economic crisis on bank lending in Indonesia. This study involves bank specific as control variable and macroeconomic variables. Using panel data, I constructed a panel of 1,372 bank-year observations for 98 banks in Indonesiain the period 2002-2015. The empirical results showed that the profitability proxyed from Return On Asset affected bank lending negatively, but this effect was relatively insigniûcant. The study also found a positive and significant impact between liquidity and bank lending in Indonesia. Meanwhile only GDP which had a significant impact on lending with a positive sign. ABSTRAK Penelitian ini bertujuan menguji dampak krisis terhadap penyaluran kredit bank di Indonesia.Variabel krisis juga diinteraksikan dengan profitabilitas dan likuiditas untuk melihat dampak profitabilitas dan likuiditas selama krisis ekonomi global terhadap penyaluran kredit bank di Indonesia. Penelitian ini juga melibatkan variabel kontrol seperti karakteristik bank dan variabel makroekonomi. Menggunakan data panel, saya menganalisis 1,372 observasi dari 98 bank di Indonesia dari tahun 2002-2015. Hasil kajian empiris menunjukan bahwa profitabilitas yang diproxikan dengan Return On Asset berdampak negatif namun dampaknya tidak signifikan. Penelitian ini juga menemukan adanya dampak positif dan signifikan antara likuiditas dan penyaluran kredit bank di Indonesia. Sementara itu, hanya variabel GDP yang memiliki dampak signifikan terhadap penyaluran kredit dengan arah positif.

show abstract

Determinants of Bank Credit in Emerging Market Economies

Cited by 53 publications

References 2 publications

Macroeconomic Determinants of Consumer Lending in Saudi Arabia

Macroeconomic Determinants of Consumer Lending in Saudi Arabia

Determinants of long‐ versus short‐term bank credit in EU countries

The Global Economic Crisis and Its Impact on Bank Lending in Indonesia

Contact Info

Product

Resources

About