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Does change in the market structure have any impact on different types of bank loans in the EU?

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  • Kouretas, Georgios P.
  • Pawłowska, Małgorzata

Abstract

The aim of this paper is to investigate the issue of asymmetry of credit market determinants of bank loans (corporate, consumer, and residential mortgage loans) between the CEE-11 countries (Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Romania) and other EU countries (Austria, Belgium, Denmark, Finland, France, Greece, Italy, Spain, the Netherlands, Ireland, Luxembourg, Germany, Portugal, Sweden, United Kingdom, Malta, and Cyprus) after the global financial crisis (GFC) of 2007–09 in the context of market structure and foreign bank presence. Using the dynamic panel model, this study finds differences in the determinants of growth in loans for two groups of countries after the global financial crisis. Furthermore, a panel data analysis of CEE-11 countries against other EU countries also finds differences between determinants of different types of bank loans. The influence of foreign capital and concentration on credit growth is different depending on the type of loans. Finally, this paper complement the evidence for support for sectoral and country specific approach in a macroprudential policy tools.

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  • Kouretas, Georgios P. & Pawłowska, Małgorzata, 2020. "Does change in the market structure have any impact on different types of bank loans in the EU?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:intfin:v:65:y:2020:i:c:s1042443118300891
    DOI: 10.1016/j.intfin.2019.101165
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    More about this item

    Keywords

    Banks; Credit growth; Concentration; Foreign ownership; EU; CEE-11;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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