Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/217638
Authors: 
Dumičić, Mirna
Ljubaj, Igor
Year of Publication: 
2018
Citation: 
[Journal:] Journal of Central Banking Theory and Practice [ISSN:] 2336-9205 [Volume:] 7 [Issue:] 1 [Publisher:] De Gruyter Open [Place:] Warsaw [Year:] 2018 [Pages:] 121-144
Publisher: 
De Gruyter Open, Warsaw
Abstract: 
In order to enhance the understanding of credit cycle dynamics in Croatia, we explore the evolution of credit demand and credit supply of corporates and households in Croatia and identify their determinants based on the switching regression framework. These results are crosschecked by the insights from the bank lending survey. The conducted analysis shows there are both supply and demand-side factors that limit the possibility of intensifying household and corporate credit activity. However, a more pronounced drag seems to be coming from subdued demand, which is greatly influenced by the unfavourable domestic macroeconomic environment and, particularly, GDP developments. This suggests that it is not unusual that credit recovery is still missing but also confirms that the scope for monetary policy to stimulate lending is limited.
Subjects: 
credit supply
credit demand
households
corporates
Croatia
switching regression framework.
JEL: 
E44
G21
G28
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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