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

86 Citations (Scopus)

456 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

Access to Document

10.1111/boer.12175

Download pdf
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

@article{ee5983be2c184e719f3c7cbbc2d82969,

title = "Economic policy uncertainty effects on credit and stability of financial institutions",

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.",

keywords = "C22, C23, D81, E51, economic policy uncertainty, financial depth, financial institutions, non-performing loans, provisions",

author = "Mustafa Caglayan and Bing Xu",

year = "2019",

month = jul,

day = "5",

doi = "10.1111/boer.12175",

language = "English",

volume = "71",

pages = "342--347",

journal = "Bulletin of Economic Research",

issn = "0307-3378",

publisher = "Wiley-Blackwell Publishing Ltd",

number = "3",

}

TY - JOUR

T1 - Economic policy uncertainty effects on credit and stability of financial institutions

AU - Caglayan, Mustafa

AU - Xu, Bing

PY - 2019/7/5

Y1 - 2019/7/5

N2 - 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.

AB - 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.

KW - C22

KW - C23

KW - D81

KW - E51

KW - economic policy uncertainty

KW - financial depth

KW - financial institutions

KW - non-performing loans

KW - provisions

UR - https://www.scopus.com/pages/publications/85057759911

U2 - 10.1111/boer.12175

DO - 10.1111/boer.12175

M3 - Article

AN - SCOPUS:85057759911

SN - 0307-3378

VL - 71

SP - 342

EP - 347

JO - Bulletin of Economic Research

JF - Bulletin of Economic Research

IS - 3

ER -

Economic policy uncertainty effects on credit and stability of financial institutions

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this