Analysis of Credit Growth Determinants in the European Countries
The main function of banks is to facilitate the better functioning of lending activity, helping to improve efficiency and rational distribution of resources between different entities. If credit is used to purchase productive resources, this will help economic growth. The overall development of cred...
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| Format: | Article |
| Language: | English |
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Ovidius University Press
2020-01-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | https://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2021/03/Section%201/6.pdf |
| _version_ | 1818850779584266240 |
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| author | Klejda Gabeshi |
| author_facet | Klejda Gabeshi |
| author_sort | Klejda Gabeshi |
| collection | DOAJ |
| description | The main function of banks is to facilitate the better functioning of lending activity, helping to improve efficiency and rational distribution of resources between different entities. If credit is used to purchase productive resources, this will help economic growth. The overall development of credits is usually based on a combination of factors that simultaneously impact the demand and supply of bank credit. Using a qualitative and quantitative analysis, the main objective of this paper is to establish the analysis of the evolution and determinants of credit activities, especially of the factors that have an impact on credit growth. Also, this paper will analyze the effects that the current pandemic has brought to the European banking sector in general and in particular to the credit activity. The results showed that economic growth, credit quality, financial intermediation rate, along with foreign and domestic funding sources are the main determinants of credit growth. |
| first_indexed | 2024-12-19T06:54:33Z |
| format | Article |
| id | doaj.art-726ac35d01094932ab4fcec162be719a |
| institution | Directory Open Access Journal |
| issn | 2393-3127 2393-3127 |
| language | English |
| last_indexed | 2024-12-19T06:54:33Z |
| publishDate | 2020-01-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-726ac35d01094932ab4fcec162be719a2022-12-21T20:31:34ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272393-31272020-01-01XX23843Analysis of Credit Growth Determinants in the European CountriesKlejda Gabeshi0University of CraiovaThe main function of banks is to facilitate the better functioning of lending activity, helping to improve efficiency and rational distribution of resources between different entities. If credit is used to purchase productive resources, this will help economic growth. The overall development of credits is usually based on a combination of factors that simultaneously impact the demand and supply of bank credit. Using a qualitative and quantitative analysis, the main objective of this paper is to establish the analysis of the evolution and determinants of credit activities, especially of the factors that have an impact on credit growth. Also, this paper will analyze the effects that the current pandemic has brought to the European banking sector in general and in particular to the credit activity. The results showed that economic growth, credit quality, financial intermediation rate, along with foreign and domestic funding sources are the main determinants of credit growth.https://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2021/03/Section%201/6.pdfcredit activitycredit determinantscredit growtheuropean banking sectors |
| spellingShingle | Klejda Gabeshi Analysis of Credit Growth Determinants in the European Countries Ovidius University Annals: Economic Sciences Series credit activity credit determinants credit growth european banking sectors |
| title | Analysis of Credit Growth Determinants in the European Countries |
| title_full | Analysis of Credit Growth Determinants in the European Countries |
| title_fullStr | Analysis of Credit Growth Determinants in the European Countries |
| title_full_unstemmed | Analysis of Credit Growth Determinants in the European Countries |
| title_short | Analysis of Credit Growth Determinants in the European Countries |
| title_sort | analysis of credit growth determinants in the european countries |
| topic | credit activity credit determinants credit growth european banking sectors |
| url | https://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2021/03/Section%201/6.pdf |
| work_keys_str_mv | AT klejdagabeshi analysisofcreditgrowthdeterminantsintheeuropeancountries |