The recent financial crisis in Europe has been followed by a significant decrease in credit flows to nonfinancial enterprises. This article investigates demand and supply of loans using data from surveys. Our econometric analysis suggests that recent European Central Bank (ECB) policy has favoured the credit market. Although bank credit standards are tighter than usual, the present low-credit growth is more the consequence of a weak demand for loans than a reduced supply from the banking system.
Supply and demand in the European credit market during the recent crisis / Giovanni Verga; Maria Gaia Soana. - In: APPLIED FINANCIAL ECONOMICS. - ISSN 1466-4305. - 22, n.16(2012), pp. 1355-1366.