IDEAS home Printed from https://ideas.repec.org/p/tcb/wpaper/1344.html
   My bibliography  Save this paper

Analyzing Banks' Opinions on the Loan Supply and Loan Demand Using Multi-Country Bank Lending Survey Data

Author

Listed:
  • Defne Mutluer Kurul

Abstract

In the aftermath of the financial crisis, understanding the lending behavior of banks has become more important than ever. In this context, bank lending surveys, which are regularly conducted by central banks, enable us to disentangle the drivers of loan supply and loan demand. This paper attempts to analyze the information content of lending surveys, by making advantage of the cross-sectional dimension of seventeen comparative country data. Statistical analyses support that in overall, banks tend to report tighter lending standards, whereas they are more neutral in evaluating the loan demand. In addition, an asymmetrical behavior exists for price and non-price conditions where banks applied stricter terms during tightening periods, whereas they opt to loosen their terms and conditions to a lesser extent during easing periods. Another question that this paper tries to answer is about the directional accuracy of qualitative forecasts- in other words, how well the banks� opinions in predicting the future behavior of the loan supply or the loan demand are. Results of the directional analysis, which is performed to assess the usefulness of bank lending surveys, indicate that forecasts are valuable in predicting the change in the loan supply and loan demand, while forecasters� ability differs across periods of increasing and decreasing loan supply and loan demand.

Suggested Citation

  • Defne Mutluer Kurul, 2013. "Analyzing Banks' Opinions on the Loan Supply and Loan Demand Using Multi-Country Bank Lending Survey Data," Working Papers 1344, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
  • Handle: RePEc:tcb:wpaper:1344
    as

    Download full text from publisher

    File URL: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Publications/Research/Working+Paperss/2013/13-44
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Loan supply; Loan demand; Bank lending survey; Forecasting;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tcb:wpaper:1344. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sermet Pekin or Ilker Cakar or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/tcmgvtr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.