Determinants of Corporate Credit Growth in Ukraine: The Application of Bank Lending Survey Data
This study investigates the determinants of corporate lending in Ukraine, with a focus on distinguishing between supply and demand factors. It uses a two-step process to build a credit standards index (CSI) based on disaggregated data from a Ukrainian bank lending survey (BLS). This paper describes...
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| Language: | English |
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National Bank of Ukraine
2022-12-01
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| Series: | Visnyk of the National Bank of Ukraine |
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| Online Access: | https://journal.bank.gov.ua/en/article/2022/254/01 |
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| author | Anatolii Hlazunov |
| author_facet | Anatolii Hlazunov |
| author_sort | Anatolii Hlazunov |
| collection | DOAJ |
| description | This study investigates the determinants of corporate lending in Ukraine, with a focus on distinguishing between supply and demand factors. It uses a two-step process to build a credit standards index (CSI) based on disaggregated data from a Ukrainian bank lending survey (BLS). This paper describes the factors that are significant for corporate lending development in Ukraine. It contributes to the existing literature by developing a measure of corporate loan supply and analyzing its ability to explain corporate credit growth in Ukraine by using bank-level BLS data. First, a panel ordered logit model is used to transform categorical data into a continuous index that measures the likelihood of credit standard tightening. Second, the study examines how this index affects new corporate lending in both national and foreign currencies. It is found that the credit standard index is influenced by exchange rate movements (with depreciations leading to tighter standards), bank liquidity, and bank competition. It is also demonstrated that the CSI has a negative impact on corporate loans in national currency, with a more pronounced effect on smaller banks. |
| format | Article |
| id | doaj-art-d8c2d809236f46d7b9c464f9f9cb0c80 |
| institution | Kabale University |
| issn | 2414-987X |
| language | English |
| publishDate | 2022-12-01 |
| publisher | National Bank of Ukraine |
| record_format | Article |
| series | Visnyk of the National Bank of Ukraine |
| spelling | doaj-art-d8c2d809236f46d7b9c464f9f9cb0c802025-01-27T10:21:31ZengNational Bank of UkraineVisnyk of the National Bank of Ukraine2414-987X2022-12-0125441410.26531/vnbu2022.254.01Determinants of Corporate Credit Growth in Ukraine: The Application of Bank Lending Survey DataAnatolii Hlazunov0https://orcid.org/0000-0002-0364-6179National Bank of Ukraine, National University of Kyiv-Mohyla AcademyThis study investigates the determinants of corporate lending in Ukraine, with a focus on distinguishing between supply and demand factors. It uses a two-step process to build a credit standards index (CSI) based on disaggregated data from a Ukrainian bank lending survey (BLS). This paper describes the factors that are significant for corporate lending development in Ukraine. It contributes to the existing literature by developing a measure of corporate loan supply and analyzing its ability to explain corporate credit growth in Ukraine by using bank-level BLS data. First, a panel ordered logit model is used to transform categorical data into a continuous index that measures the likelihood of credit standard tightening. Second, the study examines how this index affects new corporate lending in both national and foreign currencies. It is found that the credit standard index is influenced by exchange rate movements (with depreciations leading to tighter standards), bank liquidity, and bank competition. It is also demonstrated that the CSI has a negative impact on corporate loans in national currency, with a more pronounced effect on smaller banks.https://journal.bank.gov.ua/en/article/2022/254/01bank lending standardscorporate lendingsurvey data |
| spellingShingle | Anatolii Hlazunov Determinants of Corporate Credit Growth in Ukraine: The Application of Bank Lending Survey Data Visnyk of the National Bank of Ukraine bank lending standards corporate lending survey data |
| title | Determinants of Corporate Credit Growth in Ukraine: The Application of Bank Lending Survey Data |
| title_full | Determinants of Corporate Credit Growth in Ukraine: The Application of Bank Lending Survey Data |
| title_fullStr | Determinants of Corporate Credit Growth in Ukraine: The Application of Bank Lending Survey Data |
| title_full_unstemmed | Determinants of Corporate Credit Growth in Ukraine: The Application of Bank Lending Survey Data |
| title_short | Determinants of Corporate Credit Growth in Ukraine: The Application of Bank Lending Survey Data |
| title_sort | determinants of corporate credit growth in ukraine the application of bank lending survey data |
| topic | bank lending standards corporate lending survey data |
| url | https://journal.bank.gov.ua/en/article/2022/254/01 |
| work_keys_str_mv | AT anatoliihlazunov determinantsofcorporatecreditgrowthinukrainetheapplicationofbanklendingsurveydata |