Economic policy uncertainty effects on credit and stability of financial institutions

Mustafa Caglayan; Bing Xu

doi:10.1111/boer.12175

Economic policy uncertainty effects on credit and stability of financial institutions

Mustafa Caglayan^*, Bing Xu

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

72 Citations (Scopus)

325 Downloads (Pure)

Abstract

We examine policy-related economic uncertainty effects on the availability of credit, non-performing loans and loan loss provisions using a panel of 18 countries. We provide significant evidence that uncertainty reduces the availability of credit while leading to increases in banks' non-performing loans and loan loss provisions, distorting sectoral stability. Our findings are economically meaningful.

Original language	English
Pages (from-to)	342-347
Number of pages	6
Journal	Bulletin of Economic Research
Volume	71
Issue number	3
Early online date	2 Dec 2018
DOIs	https://doi.org/10.1111/boer.12175
Publication status	Published - 5 Jul 2019

Keywords

C22
C23
D81
E51
economic policy uncertainty
financial depth
financial institutions
non-performing loans
provisions

ASJC Scopus subject areas

Economics and Econometrics

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10.1111/boer.12175

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This is the peer reviewed version of the following article: Caglayan, M. and Xu, B. (2019), ECONOMIC POLICY UNCERTAINTY EFFECTS ON CREDIT AND STABILITY OF FINANCIAL INSTITUTIONS. Bulletin of Economic Research, which has been published in final form at https://doi.org/10.1111/boer.12175 This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Accepted author manuscript, 249 KB

Cite this

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Economic policy uncertainty effects on credit and stability of financial institutions

Abstract

Keywords

ASJC Scopus subject areas

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