Detail publikace

The Activity of the Banking and Shadow Banking Sector vs. Lending Standards in Selected Euro Area Countries: A Wavelet Approach

Originální název

The Activity of the Banking and Shadow Banking Sector vs. Lending Standards in Selected Euro Area Countries: A Wavelet Approach

Anglický název

The Activity of the Banking and Shadow Banking Sector vs. Lending Standards in Selected Euro Area Countries: A Wavelet Approach

Jazyk

en

Originální abstrakt

Shadow banking activities can be associated with the potential financial instability because these activities are realised outside the regulated banking sector. The aim of the paper is to assess the relationship between the banking and shadow banking activities and lending standards imposed by banking institutions in nine Euro Area countries using a method of regression and correlation analysis and a wavelet approach. We use quarterly data over the period 2003-2013. When measuring the shadow banking activity at national level, the shadow banking activities are most extensive in Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. We conclude that banking institutions originated fewer loans in reaction to tighter lending standards (imposed by these banking insti-tutions on their loans). However, the expected positive impact of tighter lending standards on loans provided by shadow banking institutions is not confirmed. We can also admit flexible reactions of OFIs to a current economic situation during the analyses period while the behaviour of MFIs followed a long-term strategy, i.e. banks did not react to short-term objectives as frequently as non-banks. In this con-text, we can conclude that banks meet their stabilising role in the economy while non-banks try to fill up gaps in the financial markets.

Anglický abstrakt

Shadow banking activities can be associated with the potential financial instability because these activities are realised outside the regulated banking sector. The aim of the paper is to assess the relationship between the banking and shadow banking activities and lending standards imposed by banking institutions in nine Euro Area countries using a method of regression and correlation analysis and a wavelet approach. We use quarterly data over the period 2003-2013. When measuring the shadow banking activity at national level, the shadow banking activities are most extensive in Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. We conclude that banking institutions originated fewer loans in reaction to tighter lending standards (imposed by these banking insti-tutions on their loans). However, the expected positive impact of tighter lending standards on loans provided by shadow banking institutions is not confirmed. We can also admit flexible reactions of OFIs to a current economic situation during the analyses period while the behaviour of MFIs followed a long-term strategy, i.e. banks did not react to short-term objectives as frequently as non-banks. In this con-text, we can conclude that banks meet their stabilising role in the economy while non-banks try to fill up gaps in the financial markets.

Dokumenty

BibTex


@inproceedings{BUT115998,
  author="Zuzana {Kučerová} and Jitka {Poměnková}",
  title="The Activity of the Banking and Shadow Banking Sector vs. Lending Standards in Selected Euro Area Countries: A Wavelet Approach",
  annote="Shadow banking activities can be associated with the potential financial instability because these activities are realised outside the regulated banking sector. The aim of the paper is to assess the relationship between the banking and shadow banking activities and lending standards imposed by banking institutions in nine Euro Area countries using a method of regression and correlation analysis and a wavelet approach. We use quarterly data over the period 2003-2013. When measuring the shadow banking activity at national level, the shadow banking activities are most extensive in Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. We conclude that banking institutions originated fewer loans in reaction to tighter lending standards (imposed by these banking insti-tutions on their loans). However, the expected positive impact of tighter lending standards on loans provided by shadow banking institutions is not confirmed. We can also admit flexible reactions of OFIs to a current economic situation during the analyses period while the behaviour of MFIs followed a long-term strategy, i.e. banks did not react to short-term objectives as frequently as non-banks. In this con-text, we can conclude that banks meet their stabilising role in the economy while non-banks try to fill up gaps in the financial markets.",
  address="University of West Bohemia, Plzeň",
  booktitle="33rd International Conference Mathematical Methods in Economics MME 2015 - Conference Proceedings",
  chapter="115998",
  howpublished="online",
  institution="University of West Bohemia, Plzeň",
  year="2015",
  month="september",
  pages="425--430",
  publisher="University of West Bohemia, Plzeň",
  type="conference paper"
}