Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/153594 
Year of Publication: 
2010
Series/Report no.: 
ECB Working Paper No. 1160
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
This study examines empirically the information content of the euro area Bank Lending Survey for aggregate credit and output growth. The responses of the lending survey, especially those related to loans to enterprises, are a significant leading indicator for euro area bank credit and real GDP growth. Notwithstanding the short history of the survey, the findings are robust across various specifications, including “horse races” with other well-known leading financial indicators. Our results are supportive of the existence of a bank lending, balance sheet, and risk-taking channel of monetary policy. They also suggest that price as well as non-price conditions and terms of credit standards do matter for credit and business cycles. Finally, we discuss the implications for the 2007/2009 financial and economic crisis.
Subjects: 
bank lending survey
business cycle
credit cycle
euro area
Monetary policy transmission
JEL: 
C23
E32
E51
E52
G21
G28
Document Type: 
Working Paper

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