Credit conditions
Praet: Covered bond supply ‘dynamised’ by ECB purchases
European Central Bank executive board member Peter Praet identified ‘a number of supply side reactions’ to covered bond purchases, which hit €10.5 billion last week
Greek governor wants to promote SME access to capital markets
Yannis Stournaras lists what he believes are the ‘key priorities’ needed to revive the supply of credit in the eurozone; backs ECB over regulation of asset-backed securities
Boston Fed paper examines stock price sensitivity to monetary policy
Research presents evidence from the Enron scandal that stock prices of financially constrained companies become less responsive to monetary policy shocks if financial frictions are present
RBA discussing steps to cool ‘unbalanced’ housing market
Australia’s financial regulators are discussing whether ‘additional steps’ are necessary to address the disproportionate increase in credit to investors in the housing market
Draghi defends TLTRO allocation of €82.6 billion
ECB president tells Econ Committee last week’s targeted LTRO ‘within the range of take-up values’ he expected; outlines shift to ‘more active’ management of balance sheet
Higher capital requirements lead to lower lending, study by Calomiris finds
Paper published today by the Bank of England finds ‘little evidence of interaction' between monetary policy and capital requirements; studies their impact on bank lending
Colombian working paper examines credit cycles in EMs
Researchers argue that central banks in emerging markets should focus on medium-term credit cycles when designing macro-prudential policy
RBI economist proposes financial conditions index for India
Index aims to provide a snapshot of financial conditions in the country in a bid to provide an early warning of crises and overcome information asymmetry
Fin paper examines SME lending in post-transition economies
Researchers find that SMEs perform better in countries with a large number of cooperative banks, rather than those dominated by banks
Eurozone banks ease credit standards for first time since crisis hit in 2007
ECB bank lending survey shows that more banks eased credit standards than tightened them in second quarter of 2014
Post-crisis central bank policies are crowding out ABS, ECB and BoE say
Securitisations could be judged according to a set of commonly agreed principles to make due diligence easier; schemes introduced to boost lending have made ABSs comparatively expensive
Bangladesh Bank governor hails SME finance initiative
Central bank funding for SME lending has seen loans to small businesses grow in absolute terms, and as a share of bank lending, since 2010
Czech paper examines strength of link between financial and real sectors
An expansion of credit from banks ‘supports industrial production' in small open economies such as the Czech Republic, working paper finds
Colombian paper finds wholesale funding can increase financial sector fragility
Monitoring credit funding sources could provide an additional tool to warn against banking disruptions, paper shows
More bank capital means banks lend more, paper finds
More capital means more credit - but greater supervisory capital constraints mean bank credit grows more slowly than when banks are less constrained
Global lending conditions more connected than ever, says BIS's Turner
Big emerging market corporations are borrowing abroad, while global capital has been flowing into EMs – meaning lending conditions are more strongly connected than before
Bundesbank paper finds benefits in concentrated bank lending
Researchers find that banks with more concentrated credit portfolios have lower expected write-offs and unexpected risk than their counterparts
US community banks losing their edge with small businesses, paper finds
Fed discussion paper finds small, opaque businesses are just as likely to use a large banking corporation as they are a community bank; strong banking relationships remain important
Risky loans reach pre-crisis levels as banks are increasingly bypassed, warns BIS
Basel-based organisation also frets over impact on corporate bond markets from interest rate normalisation; cross-border lending falls in Q2 as non-banks play increasingly important role
Financial crisis hit Australian inventories, paper finds
RBA researcher tests theory that tight credit conditions caused Australian companies to reduce their inventories, and includes a case study on the automotive industry supporting the hypothesis
BIS research finds capital requirements had minor impact on bank lending
Quarterly review article presents evidence that banks have adjusted to higher capital requirements mainly via retained earnings, rather than by cutting lending, with less of a macroeconomic impact
MAS targets household debt with new credit rules
The Monetary Authority of Singapore has unveiled an arsenal of new measures to cap individuals' borrowing in an attempt to rein in rising levels of household debt
Net lending to UK businesses still negative, BoE data shows
Second quarter figures for the UK's Funding for Lending scheme shows credit creation remains subdued; Bank of England attributes weak performance to alternative funding sources
Curacao and Sint Maarten banks hit with ‘credit freeze’ in 2012
Central bank prevented banks from extending new loans after failing to control the islands’ rapid credit growth through more conventional measures