EIB Working Paper 2025/02 - How do macroprudential policies affect corporate investment? Insights from EIBIS data

Macroprudential policies aim to preserve financial stability by curbing excessive risk-taking in the financial system. As a knock-on effect, they can also impact investment activity by firms. This study uses firm-level data from the European Investment Bank Investment Survey (EIBIS) for the period 2...

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Sprog:engelsk
Udgivet: European Investment Bank 2025
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collection Directory of Open Access Books
description Macroprudential policies aim to preserve financial stability by curbing excessive risk-taking in the financial system. As a knock-on effect, they can also impact investment activity by firms. This study uses firm-level data from the European Investment Bank Investment Survey (EIBIS) for the period 2015-2022 to investigate exactly how different kinds of firms and corporate investment are affected by such macroprudential policies. This analysis confirms that the tightening of macroprudential policies influences bank lending decisions and leads to a reduction in corporate investment. More specifically, the study shows that financially weaker banks are more likely to restrict credit in response to such tightening. Firms that are heavily reliant on external finance for investment, as well as those that are financially weaker, are more adversely affected by a reduced supply of credit supply. Investments in tangible assets are more strongly affected than investment in intangibles, as firms anyway find it harder to obtain credit finance for investments in intangibles assets.
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institution Directory of Open Access Books
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publishDate 2025
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publisher European Investment Bank
publisherStr European Investment Bank
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spelling doab-20.500.12854ir-1581102025-07-30T09:00:09Z EIB Working Paper 2025/02 - How do macroprudential policies affect corporate investment? Insights from EIBIS data thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting Macroprudential policies aim to preserve financial stability by curbing excessive risk-taking in the financial system. As a knock-on effect, they can also impact investment activity by firms. This study uses firm-level data from the European Investment Bank Investment Survey (EIBIS) for the period 2015-2022 to investigate exactly how different kinds of firms and corporate investment are affected by such macroprudential policies. This analysis confirms that the tightening of macroprudential policies influences bank lending decisions and leads to a reduction in corporate investment. More specifically, the study shows that financially weaker banks are more likely to restrict credit in response to such tightening. Firms that are heavily reliant on external finance for investment, as well as those that are financially weaker, are more adversely affected by a reduced supply of credit supply. Investments in tangible assets are more strongly affected than investment in intangibles, as firms anyway find it harder to obtain credit finance for investments in intangibles assets. 2025-04-03T13:21:02Z 2025-04-03T13:21:02Z 2025-04-02T13:56:22Z 2025 book ONIX_20250402_9789286159008_22 https://library.oapen.org/handle/20.500.12657/100565 9789286159008 https://directory.doabooks.org/handle/20.500.12854/158110 eng open access image/jpeg n/a https://library.oapen.org/bitstream/20.500.12657/100565/1/9789286159008_pdf.pdf European Investment Bank 10.2867/2193600 10.2867/2193600 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c 9789286159008 72 Luxembourg open access
spellingShingle thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
EIB Working Paper 2025/02 - How do macroprudential policies affect corporate investment? Insights from EIBIS data
title EIB Working Paper 2025/02 - How do macroprudential policies affect corporate investment? Insights from EIBIS data
title_full EIB Working Paper 2025/02 - How do macroprudential policies affect corporate investment? Insights from EIBIS data
title_fullStr EIB Working Paper 2025/02 - How do macroprudential policies affect corporate investment? Insights from EIBIS data
title_full_unstemmed EIB Working Paper 2025/02 - How do macroprudential policies affect corporate investment? Insights from EIBIS data
title_short EIB Working Paper 2025/02 - How do macroprudential policies affect corporate investment? Insights from EIBIS data
title_sort eib working paper 2025 02 how do macroprudential policies affect corporate investment insights from eibis data
topic thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
topic_facet thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
url ONIX_20250402_9789286159008_22