Heterogeneity in lending and sectoral growth: evidence from German bank-level data
Abstract
This paper studies the sectoral and geographical dimensions of the response of bank lending to sectoral growth. We use several bank-level datasets provided by the Deutsche Bundesbank for the 1996-2002 period. Our results show that bank heterogeneity affects how lending responds to domestic sectoral growth. We document that banks? total lending to German firms reacts procyclically to domestic sectoral growth, while lending exceeding a threshold of ?1.5 million to German and foreign firms does not. Moreover, we find that the response of lending depends on bank characteristics such as the banking groups, the banks? asset size, and the degree of sectoral portfolio concentration. We find that total domestic lending by savings banks and credit cooperatives (including their regional institutions), smaller banks, and banks whose portfolios are heavily concentrated in specific sectors responds positively and, in relevant cases, more strongly to domestic sectoral growth. --(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Article provided by Springer in its journal International Economics and Economic Policy.
Volume (Year): 3 (2006)
Issue (Month): 1 (April)
Pages: 43-72
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Web page: http://www.springerlink.com/link.asp?id=111059
Related research
Keywords: Bank lending; Heterogeneity; Sectoral growth; G21; F3;Other versions of this item:
- Schertler, Andrea & Buch, Claudia M. & von Westernhagen, Natalja, 2006. "Heterogeneity in lending and sectoral growth: evidence from German bank-level data," Discussion Paper Series 2: Banking and Financial Studies 2006,04, Deutsche Bundesbank, Research Centre.
- F3 - International Economics - - International Finance
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Ricardo Bebczukegui & Máximo Sangiácomo, 2007.
"Efficiency of Lending Sectoral Allocation in Argentina,"
BCRA Working Paper Series
200719, Central Bank of Argentina, Economic Research Department.
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