The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector
The aim of this study is to understand the bank lending behavior during financial crisis, in particular whether an increase of credit risk during this period can lead banks to reduce their lending activity. A second object is to investigate whether cooperative and commercial banks show different...
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| Format: | Article |
| Language: | English |
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Ala-Too International University
2015-11-01
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| Series: | Eurasian Journal of Business and Economics |
| Subjects: | |
| Online Access: | http://www.ejbe.org/EJBE2015Vol08No16p059CUCINELLI.pdf |
| _version_ | 1818499562707353600 |
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| author | Doriana CUCINELLI |
| author_facet | Doriana CUCINELLI |
| author_sort | Doriana CUCINELLI |
| collection | DOAJ |
| description | The aim of this study is to understand the bank lending behavior during financial
crisis, in particular whether an increase of credit risk during this period can lead
banks to reduce their lending activity. A second object is to investigate whether
cooperative and commercial banks show different behaviors. The analysis is based
on a sample of Italian banks (listed and no listed), an example of a country
undergoing a credit crunch. The sample consists of 488 listed and unlisted Italian
banks observed 2007-2013. Unlisted banks are included because they are the most
numerous in the Italian banking system. Findings show a negative impact of credit
risk on bank lending behavior, with regard to both credit risk measures: the nonperforming
loans and the loan loss provision ratio. |
| first_indexed | 2024-12-10T20:31:12Z |
| format | Article |
| id | doaj.art-e3c4707af2ae422b9259e298bad1f1fe |
| institution | Directory Open Access Journal |
| issn | 1694-5948 1694-5972 |
| language | English |
| last_indexed | 2024-12-10T20:31:12Z |
| publishDate | 2015-11-01 |
| publisher | Ala-Too International University |
| record_format | Article |
| series | Eurasian Journal of Business and Economics |
| spelling | doaj.art-e3c4707af2ae422b9259e298bad1f1fe2022-12-22T01:34:40ZengAla-Too International UniversityEurasian Journal of Business and Economics1694-59481694-59722015-11-01816597110.17015/ejbe.2015.016.04The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking SectorDoriana CUCINELLI0Financial Intermediation University of Milan BicoccaThe aim of this study is to understand the bank lending behavior during financial crisis, in particular whether an increase of credit risk during this period can lead banks to reduce their lending activity. A second object is to investigate whether cooperative and commercial banks show different behaviors. The analysis is based on a sample of Italian banks (listed and no listed), an example of a country undergoing a credit crunch. The sample consists of 488 listed and unlisted Italian banks observed 2007-2013. Unlisted banks are included because they are the most numerous in the Italian banking system. Findings show a negative impact of credit risk on bank lending behavior, with regard to both credit risk measures: the nonperforming loans and the loan loss provision ratio.http://www.ejbe.org/EJBE2015Vol08No16p059CUCINELLI.pdfbanknon-performing loansbanksgrowth of gross loanscredit riskItalian banking system |
| spellingShingle | Doriana CUCINELLI The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector Eurasian Journal of Business and Economics bank non-performing loans banks growth of gross loans credit risk Italian banking system |
| title | The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector |
| title_full | The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector |
| title_fullStr | The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector |
| title_full_unstemmed | The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector |
| title_short | The Impact of Non-performing Loans on Bank Lending Behavior: Evidence from the Italian Banking Sector |
| title_sort | impact of non performing loans on bank lending behavior evidence from the italian banking sector |
| topic | bank non-performing loans banks growth of gross loans credit risk Italian banking system |
| url | http://www.ejbe.org/EJBE2015Vol08No16p059CUCINELLI.pdf |
| work_keys_str_mv | AT dorianacucinelli theimpactofnonperformingloansonbanklendingbehaviorevidencefromtheitalianbankingsector AT dorianacucinelli impactofnonperformingloansonbanklendingbehaviorevidencefromtheitalianbankingsector |