On the factors driving bank lending standards: Global evidence from bank lending surveys

Abstract

Using a newly available dataset of bank lending surveys for 33 countries, this paper examines the factors driving bank lending standards for credit to enterprises. We find that the balance sheet, competition, and risk perception factors all significantly influence bank lending standards. In addition, we demonstrate that competition is more relevant for easing of lending standards, while collateral and borrower risk are more relevant for tightening of lending standards.