Economic policy uncertainty effects on credit and stability of financial institutions

Research output: Contribution to journalArticle

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 languageEnglish
Pages (from-to)342-347
Number of pages6
JournalBulletin of Economic Research
Volume71
Issue number3
Early online date2 Dec 2018
DOIs
Publication statusPublished - 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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