The impact of COVID-19 pandemic on bank lending around the world

Gonul Colak; Özde Öztekin

doi:10.1016/j.jbankfin.2021.106207

The impact of COVID-19 pandemic on bank lending around the world

Gonul Colak
, Özde Öztekin^*

^*Corresponding author for this work

Finance, Helsinki

Florida International University

Research output: Contribution to journal › Article › Scientific › peer-review

198 Citations (Scopus)

Abstract

We evaluate the influence of the pandemic on global bank lending and identify bank and country characteristics that amplify or weaken the effect of the disease outbreak on bank credit. Using a sample of banks from 125 countries, we apply a difference-in-difference methodology and find that bank lending is weaker in countries that are more affected by the health crisis. This effect depends on the bank's financial conditions, market structure, regulatory and institutional environment, financial intermediary and debt market development, ease of access of corporate firms to debt capital, and the response of the public health sector to the crisis.

Original language	English
Article number	106207
Peer-reviewed scientific journal	Journal of Banking & Finance
Volume	133
Number of pages	24
ISSN	0378-4266
DOIs	https://doi.org/10.1016/j.jbankfin.2021.106207
Publication status	Published - 01.12.2021
MoE publication type	A1 Journal article - refereed

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 3 Good Health and Well-being
SDG 8 Decent Work and Economic Growth

Keywords

511 Economics
bank loans
credit supply
COVID-19
difference-in-difference method
entropy balancing

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10.1016/j.jbankfin.2021.106207

Impact of covid-19Auhor's accepted manuscript (AAM), 2.4 MBLicence: CC BY-NC-ND

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The impact of COVID-19 pandemic on bank lending around the world

Abstract

UN SDGs

Keywords

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