BUNDESBANK DISCUSSION PAPER: “LOAN SUPPLY IN GERMANY DURING THE FINANCIAL CRISIS”

May 3, 2010 at 9:41 pm | Posted in Economics, Financial, Germany, History, Research | Leave a comment

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Dear customer

The Bundesbank Research Centre has released a new

Discussion Paper (No 05/2010 Series 1).

Author/s:
Ulrike Busch

Michael Scharnagl

Jan Scheithauer

Title:
Loan supply in
Germany during the financial crisis

Abstract:

Distinguishing pure supply effects from other determinants of price and quantity in the market for loans is a notoriously difficult problem.
Using German data, we employ Bayesian vector autoregressive models with sign restrictions on the impulse response functions in order to enquire the role of loan supply and monetary policy shocks for the dynamics of loans to non-financial corporations. For the three quarters following the Lehman collapse, we find very strong negative loan supply shocks, while monetary policy was essentially neutral.
Nevertheless, the historical decomposition shows a cumulated negative impact of loan supply shocks and monetary policy shocks on loans to non-financial corporations, due to the lagged effects of past loan supply and monetary policy shocks. However, these negative effects on loans to non-financial corporations are overcompensated by positive other shocks, which implies that loans developed more favorably than implied by the model, over the past few quarters.

http://vo5555.newsletter.bundesbank.de/servlet/rd?l=Diskussionspapiere-JOKA-PJN1-M7DJ-ONL3-NWSL125

+ 01: Deutsche Bundesbank
Forschungszentrum

Research Centre

Wilhelm-Epstein-Strasse 14

60431 Frankfurt am Main

Germany

+ 02: Kontakt
presse-information@bundesbank.de

The Bundesbank Research Centre has released a new Discussion Paper (No 05/2010 Series 1).

Author/s:
Ulrike Busch
Michael Scharnagl
Jan Scheithauer

Title:
Loan supply in
Germany during the financial crisis

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