Factors influencing bank lending policies in CEE countries
Factors influencing bank lending policies in CEE countries

Summary/Abstract: The aim of this paper is to analyse the trends in lending policies of eleven CEE countries in an attempt to determine the main factors influencing the ability of their banking systems to efficiently provide credit to the economy. The empirical part focuses on a question of what influences loan growth and composition in CEE countries, based on panel data estimations. From the empirical analysis it is evident that there are different factors influencing loans’ growth, and corporate and consumer lending. For loan growth, macroeconomic variables were of the highest importance. For credit structure, universal banks had advantage in corporate lending, while smaller, traditional banks in granting consumer loans. Overall, the panel data analysis makes it possible to formulate a policy conclusion that the structural diversification of the banking market is important for efficient credit policies.

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