EIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe
We estimate a FAVAR with Bayesian techniques in order to investigate the impact of loan supply conditions on euro area corporate investment and its financing structure. We identify shocks to overall demand and loan supply with sign and impact restrictions. Although tightened financial conditions ha...
Gorde:
| Egile nagusia: | |
|---|---|
| Formatua: | Online |
| Hizkuntza: | ingelesa |
| Argitaratua: |
European Investment Bank
2021
|
| Gaiak: | |
| Sarrera elektronikoa: | OCN: 1289790080 |
| Etiketak: |
Etiketarik gabe, Izan zaitez lehena erregistro honi etiketa jartzen!
|
| _version_ | 1869531129957056512 |
|---|---|
| author | European Investment Bank |
| author_browse | European Investment Bank |
| author_facet | European Investment Bank |
| author_sort | European Investment Bank |
| collection | Directory of Open Access Books |
| description | We estimate a FAVAR with Bayesian techniques in order to investigate the impact of loan supply conditions on euro area corporate investment and its financing structure. We identify shocks to overall demand and loan supply with sign and impact restrictions. Although tightened financial conditions have adversely impacted corporate investment during and after the sovereign debt crisis, the resulting impediments in loan supply, illustrated by lower loan volumes and higher spreads, have been partly alleviated by strengthened corporate debt issuance. We show that (1) part of the protracted increase in debt to loan ratio since the crisis reflects bottlenecks in the provision of bank credit and (2) the tightened loan supply has been more adverse for small corporations with limited market access. Overall, our analysis of macro-financial developments suggests the need for policy actions to deepen the European corporate debt market and enhance market access for smaller corporates. |
| format | Online |
| id | doab-20.500.12854ir-72856 |
| institution | Directory of Open Access Books |
| language | eng |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | European Investment Bank |
| publisherStr | European Investment Bank |
| record_format | ojs |
| spelling | doab-20.500.12854ir-728562025-07-30T21:10:52Z EIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe European Investment Bank Business & Economics Investments & Securities thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFM Investment and securities We estimate a FAVAR with Bayesian techniques in order to investigate the impact of loan supply conditions on euro area corporate investment and its financing structure. We identify shocks to overall demand and loan supply with sign and impact restrictions. Although tightened financial conditions have adversely impacted corporate investment during and after the sovereign debt crisis, the resulting impediments in loan supply, illustrated by lower loan volumes and higher spreads, have been partly alleviated by strengthened corporate debt issuance. We show that (1) part of the protracted increase in debt to loan ratio since the crisis reflects bottlenecks in the provision of bank credit and (2) the tightened loan supply has been more adverse for small corporations with limited market access. Overall, our analysis of macro-financial developments suggests the need for policy actions to deepen the European corporate debt market and enhance market access for smaller corporates. 2021-11-17T04:02:50Z 2021-11-17T04:02:50Z 2021-11-16T05:31:20Z 2021 book OCN: 1289790080 https://library.oapen.org/handle/20.500.12657/51528 9789286150777 https://directory.doabooks.org/handle/20.500.12854/72856 eng open access image/jpeg image/jpeg image/jpeg image/jpeg image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International https://library.oapen.org/bitstream/20.500.12657/51528/1/economics_working_paper_2021_09_en.pdf https://library.oapen.org/bitstream/20.500.12657/51528/1/economics_working_paper_2021_09_en.pdf https://library.oapen.org/bitstream/20.500.12657/51528/1/economics_working_paper_2021_09_en.pdf https://library.oapen.org/bitstream/20.500.12657/51528/1/economics_working_paper_2021_09_en.pdf https://library.oapen.org/bitstream/20.500.12657/51528/1/economics_working_paper_2021_09_en.pdf European Investment Bank European Investment Bank https://doi.org/10.2867/243881 https://doi.org/10.2867/243881 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c Knowledge Unlatched 9789286150777 Knowledge Unlatched (KU) KU Open Services European Investment Bank open access |
| spellingShingle | Business & Economics Investments & Securities thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFM Investment and securities European Investment Bank EIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe |
| title | EIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe |
| title_full | EIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe |
| title_fullStr | EIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe |
| title_full_unstemmed | EIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe |
| title_short | EIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe |
| title_sort | eib working paper 2021 09 market finance as a spare tyre corporate investment and access to bank credit in europe |
| topic | Business & Economics Investments & Securities thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFM Investment and securities |
| topic_facet | Business & Economics Investments & Securities thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFM Investment and securities |
| url | OCN: 1289790080 |
| work_keys_str_mv | AT europeaninvestmentbank eibworkingpaper202109marketfinanceasasparetyrecorporateinvestmentandaccesstobankcreditineurope |