Bundesbank paper captures dampening impact of bank lending


Bank lending survey indicators help explain the observed rise in lending growth experienced in the 2000s, according to a paper published by the Bundesbank on December 30. Barno Blaes, the paper's author, uses data from the Eurosystem's Bank Lending Survey and micro data on loan quantities and prices to analyse the role of bank-related constraints in explaining the sharp slowdown in bank lending to non-financial corporations in Germany during the recent financial crisis. The author finds that