EconStor >
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin >
DIW-Diskussionspapiere >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/18530
  
Title:Macroeconomic Uncertainty and Bank Lending: The Case of Ukraine PDF Logo
Authors:Talavera, Oleksandr
Tsapin, Andriy
Zholud, Oleksandr
Issue Date:2006
Series/Report no.:DIW-Diskussionspapiere 637
Abstract:Our study investigates the link between bank lending behavior and macroeconomic uncertainty. We develop a dynamic model of a bank's value maximization that results in a negative relationship between loan to capital ratio and macroeconomic uncertainty. This proposition is tested using a panel of Ukrainian banks collected from NBU and covering the period 2003q1-2005q3. The results indicate that banks increase their lending ratios when macroeconomic uncertainty decreases. We demonstrate that our results are robust with respect to the measurement of macroeconomic uncertainty. The reaction of banks to changes in uncertainty is not uniform and depends on bank-specific characteristics.
Subjects:Banks
macroeconomic uncertainty
Ukraine
banks' balance sheets
JEL:G28
P34
P27
G21
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

Files in This Item:
File Description SizeFormat
dp637.pdf276.34 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/18530

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.