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dc.contributor.authorEuropean Investment Bank
dc.date.accessioned2021-11-16T05:31:20Z
dc.date.available2021-11-16T05:31:20Z
dc.date.issued2021
dc.identifier.urihttps://library.oapen.org/handle/20.500.12657/51528
dc.description.abstractWe estimate a FAVAR with Bayesian techniques in order to investigate the impact of loan supply conditions on euro area corporate investment and its financing structure. We identify shocks to overall demand and loan supply with sign and impact restrictions. Although tightened financial conditions have adversely impacted corporate investment during and after the sovereign debt crisis, the resulting impediments in loan supply, illustrated by lower loan volumes and higher spreads, have been partly alleviated by strengthened corporate debt issuance. We show that (1) part of the protracted increase in debt to loan ratio since the crisis reflects bottlenecks in the provision of bank credit and (2) the tightened loan supply has been more adverse for small corporations with limited market access. Overall, our analysis of macro-financial developments suggests the need for policy actions to deepen the European corporate debt market and enhance market access for smaller corporates.
dc.languageEnglish
dc.rights.uriCopyright held by content provider
dc.subject.classificationthema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFM Investment and securitiesen_US
dc.subject.otherBusiness & Economics
dc.subject.otherInvestments & Securities
dc.titleEIB Working Paper 2021/09 - Market finance as a spare tyre? Corporate investment and access to bank credit in Europe
dc.typebook
oapen.identifier.doihttps://doi.org/10.2867/243881
oapen.relation.isPublishedBy66479d04-7b84-49c0-9a4d-db552a3ecc71
oapen.relation.isFundedByb818ba9d-2dd9-4fd7-a364-7f305aef7ee9
oapen.relation.isbn9789286150777
oapen.collectionKnowledge Unlatched (KU)
oapen.imprintEuropean Investment Bank
oapen.identifierhttps://openresearchlibrary.org/viewer/05178adb-5a66-48aa-9d00-86ca42a1bd83
oapen.identifier.isbn9789286150777


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