The Activity of the Banking and Shadow Banking Sector vs. Lending Standards in Selected Euro Area Countries: A Wavelet Approach

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F15%3A86094837" target="_blank" >RIV/61989100:27510/15:86094837 - isvavai.cz</a>

Alternative codes found

RIV/00216305:26220/15:PU115211

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Activity of the Banking and Shadow Banking Sector vs. Lending Standards in Selected Euro Area Countries: A Wavelet Approach

Original language description

Shadow banking activities can be associated with the potential financial instability because these activities are realised outside the regulated banking sector. The aim of the paper is to assess the relationship between the banking and shadow banking activities and lending standards imposed by banking institutions in nine Euro Area countries using a method of regression and correlation analysis and a wavelet approach. We use quarterly data over the period 2003-2013. When measuring the shadow banking activity at national level, the shadow banking activities are most extensive in Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. We conclude that banking institutions originated fewer loans in reaction to tighter lending standards (imposed by these banking insti-tutions on their loans). However, the expected positive impact of tighter lending standards on loans provided by shadow banking institutions is not confirmed. We can also admit flexible reactions of OFIs to a current economic situation during the analysed period while the behaviour of MFIs followed a long-term strategy, i.e. banks did not react to short-term objectives as frequently as non-banks. In this con-text, we can conclude that banks met their stabilising role in the economy while non-banks tried to fill up gaps in the financial markets.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

10103 - Statistics and probability

Project

Result was created during the realization of more than one project. More information in the Projects tab.

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2015

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Mathematical Methods in Economics, MME 2015 : 33rd international conference : conference proceedings : Cheb, Czech Republic, September 9-11, 2015

ISBN

978-80-261-0539-8

ISSN

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e-ISSN

neuvedeno

Number of pages

6

Pages from-to

425-430

Publisher name

University of West Bohemia

Place of publication

Plzeň

Event location

Cheb

Event date

Sep 9, 2015

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

000387898900073