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The Credit Constraint: Perception of Banks' Willingness to Provide Credit and Company-specific Credit Market Experience

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  • Christa Hainz
  • Nikolay Hristov

Abstract

Since 2003, the German companies have been regularly queried in the ifo Business Survey about banks' willingness to provide loans. The responses to this "credit question" are used both for the formation of macroeconomic indicators such as the "Credit Constraint" and for the analysis of microdata, i.e. for observations at the level of the individual company. However, it is unclear whether the responses of a company reflect its own situation or the sector-specific, regional or even macroeconomic trends. For this reason, since March 2017 the "credit question" has been altered. Companies are explicitly asked whether they have need of credit and how they assess the behaviour of banks in these credit negotiations.

Suggested Citation

  • Christa Hainz & Nikolay Hristov, 2017. "The Credit Constraint: Perception of Banks' Willingness to Provide Credit and Company-specific Credit Market Experience," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(07), pages 51-54, April.
    • Handle: RePEc:ces:ifosdt:v:70:y:2017:i:07:p:51-54
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    File URL: https://www.ifo.de/DocDL/sd-2017-07-hainz-hristov-kredithuerde-2017-04-13.pdf
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    References listed on IDEAS

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    5. Fidrmuc, Jarko & Hainz, Christa & Hölzl, Werner, 2017. "Dynamics of Access to Credit and Perceptions of Lending Policy: Evidence from a Firm Survey," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168254, Verein für Socialpolitik / German Economic Association.
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    Cited by:

    1. Stefan Sauer & Klaus Wohlrabe, 2020. "ifo Handbuch der Konjunkturumfragen," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 88.

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    More about this item

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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