Impact of Macroeconomic Factors on the Value of Loans Granted to Non-Financial Enterprises by Monetary Financial Institutions in the Euro Area Countries
Impact of Macroeconomic Factors on the Value of Loans Granted to Non-Financial Enterprises by Monetary Financial Institutions in the Euro Area Countries

Author(s): Agnieszka Anna Huterska, Robert Huterski, Justyna Łapińska
Subject(s): National Economy, Supranational / Global Economy, Business Economy / Management, Economic history, Economic policy, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Masarykova univerzita nakladatelství
Keywords: loans; credit; monetary financial institutions; non-financial corporations; panel data model;
Summary/Abstract: The use of low interest rates by the European Central Bank as an instrument to counteract the effects of the financial crisis in 2008 seemed to create favorable conditions for a significant increase in demand from non-financial corporations for loans granted by monetary financial institutions. Indeed, the demand for loans in individual euro area countries reported by non-financial corporations is shaped by both conditions common for the entire euro area and numerous factors reflecting the specificity of a given national economy. The aim of the article is to assess the impact of key macroeconomic factors on the size of lending to non-financial enterprises by monetary financial institutions in the euro area countries. The macroeconomic factors examined include GDP growth rate, unemployment rate, wage growth, inflation and the long-term interest rate according to the Maastricht criterion. The survey covers the euro area countries in 2008-2015, without Estonia and Latvia due to incomplete data for these countries for the above period. The data comes from the databases of the European Central Bank and Eurostat. For the purpose of assessing the above-mentioned factors, an econometric model based on panel data will be created.

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