Abstract
The chapter analyses the impact of the new EU regulations on credit provision. While many studies analysed the impact of capital regulations on lending, not much attention has been devoted to the role of other regulatory aspects in shaping credit expansion. The chapter endeavours to fill this void by analysing the relation between a broad array of banking regulations and lending. The study covers 886 commercial banks from 27 EU countries. It discusses the channels through which the respective elements of banking regulations influence the level and quality of bank lending. Subsequently it conducts a series of empirical exercises. On the basis of the results it draws conclusions about the effects of the ongoing regulatory changes on credit growth and finally formulates challenges for future reforms.
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Notes
- 1.
Both relations were tested during both periods. The changes of the funding structure are significant only during the crisis.
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Sum, K. (2016). Banking Regulation and Bank Lending in the EU. In: Post-Crisis Banking Regulation in the European Union. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-41378-5_6
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DOI: https://doi.org/10.1007/978-3-319-41378-5_6
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