Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries

Beck, Thorsten; Büyükkarabacak, Berrak; Rioja, Felix; Valev, Neven

Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries

2008

Beck, Thorsten | Büyükkarabacak, Berrak | Rioja, Felix | Valev, Neven

While the theoretical and empirical finance literature has focused almost exclusively on enterprise credit, about half of credit extended by banks to the private sector in a sample of 45 developing and developed countries is to households. The share of household credit in total credit increases as countries grow richer and financial systems develop. Cross-country regressions, however, suggest a positive and significant impact on gross domestic product per capita growth only of enterprise but not household credit. These two findings together partly explain why previous studies have found a small or insignificant effect of finance on growth in high-income countries. In addition, countries with a lower share of manufacturing, a higher degree of urbanization, and more market-oriented financial systems have a higher share of household credit. It is thus mostly socio-economic trends that determine credit composition, while policies influencing banking market structure and regulatory policies are not robustly related to credit composition.

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accountability agriculture bank loans banking systems bankruptcy banks capital market commercial banks common law consumers corruption developing countries development economics economic development economic growth economic sectors economic trends economics entrepreneurs entrepreneurship exports families financial institutions financial market gross domestic product growth rate households housing human capital income distribution inflation institutional development international bank large enterprises laws legal system liquidity macroeconomics market structure microcredit microfinance mortgages private enterprises productivity real estate regression analysis repayment risk management savings stock market taxation transaction costs urban areas urban population urbanization value added

Información bibliográfica

Editorial

World Bank, Washington, DC

Otras materias

Dummy variables; Credit scoring models; Lifetime; Financial systems; Distribution of credit; Future research; Deficits; Lender; Financial structure; Financial assets; Financial intermediary; Loan contracts; Mortgage interest; Small business credit; Household lending; Secondary schools; Earnings; Banking sectors; Average costs; Credit institutions; Credit information; Credit increases; Public policy; Gross domestic product per capita; Low income; Deposit insurance; Market share; Credit registries; Share of credit; Credit facilities; Bank access; Gdp; Banking system; Creditors; Credit scoring; Political economy; Consumer goods; Taxable income; Large business; Distribution of income; Credit access; Legal system efficiency; Financial crises; Financing needs; Consumer price index; Financial sector policies; Financial studies; Loan size; Consumer lending; Macroeconomic stability; Financial sector; Financial intermediation; Lack of access; Private credit; Borrower; Emerging markets; Foreign entry; Personal credit; Expenditures; Lenders; Banking sector; Proprietorships; Borrowing; Bank competition; Inflation rate; Endogenous variables; Public credit; Consumer credit; Economic theory; Credit growth; Central bank; Transition economies; Enrollment; Federal reserve; Liquidity constraints; Equilibrium credit rationing; Asset allocation; Private sector credit; Small business; Business credit; Income level; Mortgage; Consumer debt; Positive effects; Federal reserve system; Creditor; Banking crisis; Tax incentives; Securities; Bank credit; Financial sectors; Mfi; Income effect; Competitiveness; Group lending; Real gdp; Regulatory framework; Type of loan; Formal banking; Commercial bank; Subsidiaries; Inflation rates; Access to credit; Market value; Financial development; Enterprise credit; Foreign currency; Corporate finance; Domestic credit; Information asymmetries; Financial sector development; Deposit money banks; Equilibrium credit; Calculations; External finance; Debtor; Credit market; Stock markets; Savings rate; Credit rationing; Government expenditures; Interest payments; Business cycle; Household finance; Country comparisons; Fixed cost; Deposit; Financial system; Gdp per capita; Current income; Incomes; Research assistance; Financial markets; Bank lending; Capital accumulation; Business loans; Informal economy; Small entrepreneurs; Federal reserve bank; Contract enforcement; Credits; Diseconomies of scale; Financial service; Financial liabilities; Mortgage credit; Transaction; Loan; Regulatory policies; Banking sector development; Mfis; Commercial lending; Financial sector indicators; Consumer loans; Credit constraints; Banking services; Banking market; Secondary school; Mortgage loans; Collateral; Credit provision; Real sector; Foreign banks; Exogenous variables; State university; Financing sources; Tax; Ownership structure; Initial investment; Biases; Capital markets; Information sharing; Consumer

Licencia

Policy Research Working Paper No. 4661http://creativecommons.org/licenses/by/3.0/World BankCC BY 3.0 Unported

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Policy Research Working Paper No. 4661

En AGRIS desde: 2014-09-15

Formato: AGRIS AP

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http://hdl.handle.net/10986/6855

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Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries

2008

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