Bank credit, asset prices and financial stability: Evidence from French banks
Author/Editor: Cyril Pouvelle
Release Date: © April, 2012
ISBN
: 978-1-47550-293-0
Stock #: WPIEA2012103
English
Stock Status: On back-order
Languages and formats available
English | French | Spanish | Arabic | Russian | Chinese | Portuguese | |
Paperback | Yes | ||||||
Yes |
Description
This paper analyses the effect of asset prices on credit growth in France and tries to disentangle credit demand and supply factors, both for the whole 1993-2010 period and during periods of financial instability. Using bank-level panel data at a quarterly frequency, stock price growth is shown to have a significant effect on lending growth over the whole period, but without credit supply factors being singled out. By contrast, housing price growth has a significant effect during periods of financial instability only, even after controlling for credit demand effects. These results show that credit demand factors do play a large role but also provide evidence of tighter credit constraints on households in financial instability periods.
Taxonomy
Asset prices , Capital markets , Financial institutions and markets
More publications in this series: Working Papers
More publications by: Cyril Pouvelle