A one standard deviation greater tightening reduces CI loan balances by 1
Changes in Bank Credit Supply and CI Loan Growth
Table 1 presents the results of regressing CI loan growth on the tightening index and the reported change in CI loan demand for the period from 1990 to 2019. The estimates in column 1, which omits the quarter fixed effects, imply that a one standard deviation increase in the tightening index is associated with a 3.13 percentage point drop in CI loan growth in the following year.
Columns 2 and 3 add macroeconomic controls and quarter fixed effects to the specification, respectively. 7 The predicted effects of tightening ents are accounted for, indicating that banks tend to tighten during times of stress, when balances would fall even without a change in supply conditions. Continuar leyendo: “A one standard deviation greater tightening reduces CI loan balances by 1” →
Publicado el 23/3/2022 Categoría small loans with bad credit.
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