Bank Indonesia enforces the Statutory Reserve Requirement (RRR/GWM) as a key monetary policy instrument aimed at maintaining liquidity stability within the banking system. This policy plays a crucial role in regulating the amount of funds banks can allocate to society through credit distribution. This study examines the impact of Reserve Requirements (RRR/GWM), Gross Domestic Product (GDP), inflation, bank size, the BI Rate, and third-party funds on bank credit. A dynamic panel data analysis is conducted using the System Generalized Method of Moments (SYS-GMM) approach to address potential endogeneity bias. The sample consists of 42 conventional banks listed on the Indonesia Stock Exchange (IDX) from 2014 to 2023. The results indicate that an increase in Reserve Requirements, bank size, the BI Rate, and third-party funds positively and significantly influences credit distribution. In contrast, GDP and inflation exert a negative and significant impact on bank lending. These findings highlight the crucial role of monetary policy in shaping banking dynamics, particularly in credit allocation. The policy implications derived from this study provide valuable insights for regulators in designing more effective liquidity management strategies in the future.

The research aims to identify the specific features of entrepreneurial activity among Tatar merchants in the Volga-Ural region in the late 19th and early 20th century, amidst the development of banking in Russia and the traditions of Muslim culture. The article presents the findings regarding the banking sector’s influence on the life of the Tatar (Muslim) population in the Volga-Ural region of the Russian Empire. The work establishes the main stages of Tatar entrepreneurship’s involvement in banking operations and identifies examples of entrepreneurs’ interactions with various financial institutions (e.g., participation in accounting and loan committees for commercial and industrial credits, their history of borrowing and depositing in banks, and instances of bankruptcy). The study also analyzes the spiritual wills of Tatar merchants and public discussions concerning banking instruments, ultimately generalizing their everyday historical experiences amidst the conflict between traditional Muslim values and the economic realities of the modernization era. The scientific novelty of the study lies in its being the first to thoroughly investigate the impact of the banking sector on Tatar entrepreneurial activity and to present specific historical examples of entrepreneurs’ interaction with financial institutions in the Volga-Ural region. The findings reveal that at the turn of the 19th and 20th centuries, Tatar Muslims changed their attitude towards banking instruments, and Tatar entrepreneurship actively utilized bank lending in both gubernia (provincial) and uyezd (district) towns of the specified territory.

Subject. The stability of Russia’s financial system. Objectives. To analyze and characterize the stability of Russia’s financial system. Methods. General scientific and special economic-mathematical methods were applied. Results. An intensive expansion of bank lending has been revealed, exceeding the growth rate of the money supply and increasing the risks of liquidity shortages. The banking sector directs credit resources primarily to the real economy, thereby boosting its economic activity. At the same time, the growth rate of consumer lending significantly outpaces the dynamics of interbank operations, which increases overall domestic demand. It has been found that since the beginning of the special military operation, the volume of circulating debt securities periodically exceeds the capitalization of the stock market. A positive real interest rate helps reduce inflation, but simultaneously limits access to borrowed funds. High dynamism and intensity in the development of Russia’s financial system have been identified. There are growing risks of a shortage of highly liquid assets, rising interest rates, and reduced efficiency in interactions among second-tier banks. This necessitates the application of macroprudential regulation by the Bank of Russia. Conclusions. The findings are useful for government authorities, investors, commercial banks, and issuing companies in shaping financial strategies and responding to economic challenges.

Access to timely and adequate credit is one of the most important drivers of business growth and economic development in emerging economies. In India, the credit system has gradually evolved from a bank-dominated structure to a diversified framework that includes non-bank financial companies (NBFCs) and policy-driven financing mechanisms. This study examines how these different sources of credit interact and influence the performance of India’s commercial sector. Using quarterly data from 2000 to 2024, the study applies econometric techniques such as unit root testing, Johansen cointegration, vector error correction modelling (VECM), and Granger causality analysis. The results indicate the existence of a stable long-run relationship between bank credit, NBFC credit, policy-driven credit, and commercial sector output. Bank lending remains the dominant driver, NBFCs act as flexible complementary lenders, and policy-based financing contributes to inclusive and sectoral development. The findings emphasise the need for a coordinated credit ecosystem that supports sustainable economic growth, financial stability, and inclusive development in India

ABSTRACT This paper explores the impact of oil price shocks on the economic growth-banking sector nexus, considering the role of institutional quality, in the case of MENA oil-importing countries. To this end, a conceptual model is developed by establishing all causal relationships between the research variables. It is tested empirically using panel ARDL with the results indicating that oil price fluctuations adversely affect economic growth and bank lending behaviour. Moreover, bank lending constitutes a strong transmission channel linking oil price shocks to economic growth for oil-importing countries. In addition, corruption and political instability impede long-run bank lending by reducing loans and increasing non-performing loans. The results have fundamental implications for researchers, bank managers and public authorities.

Erratum: Geopolitical Risks and Bank Lending in Taiwan: An Empirical Analysis

Abstract This paper examines the optimal observability of Central Bank Digital Currency (CBDC) payment flows in the context of bank lending. Observability matters because lenders use borrowers' payment flows to enforce repayment, and the degree of visibility varies across payment instruments. When a CBDC is introduced alongside existing payment methods, we show that moderate observability in CBDC transactions may generate a pooling equilibrium that involves inefficient credit allocation. The optimal level of observability depends on how much CBDC increases entrepreneurs' revenues: When the benefit is modest, the socially optimal design is deposit‐like; when the benefit is large, it is cash‐like.

Agricultural finance plays a crucial role in strengthening rural economies and promoting inclusive growth. In India, commercial banks function as key institutions in implementing agricultural and priority sector lending policies framed by the Reserve Bank of India and the Government of India. The Kumaun region of Uttarakhand, characterized by hilly terrain, small landholdings, and subsistence farming, presents unique challenges in agricultural credit delivery. This study evaluates the performance of commercial banks in extending agricultural loans in the Kumaun region, with special reference to target achievement, implementation of District Credit Plans, and priority sector lending norms. It examines the challenges faced by banks in loan disbursement and recovery, as well as the difficulties experienced by borrowers in accessing institutional credit. The study also analyzes sectoral trends in agricultural lending and assesses the socio-economic impact of bank credit on farmers’ income, productivity, and livelihood security. The research is based on both primary and secondary data. Primary data are collected from bank officials and agricultural borrowers across selected districts of Kumaun, while secondary data are obtained from annual reports, District Credit Plans, and banking statistics. Statistical tools such as percentage analysis, growth rates, and comparative performance indicators are employed to evaluate lending performance and impact. The findings are expected to reveal gaps between targeted and actual lending, operational constraints in scheme implementation, and the extent to which agricultural credit has contributed to regional agricultural development. The study provides policy suggestions to improve credit delivery mechanisms, enhance borrower accessibility, and strengthenthe effectiveness of priority sector lending in the Kumaun region.

Purpose This paper aims to assess the impact of the enforcement of Article 173 of France’s Law n.992/2015 (on Energy Transition for Green Growth) and of its environmental disclosure requirements on bank lending behaviour. Design/methodology/approach The authors conduct loan-level triple-difference estimates by using confidential loan-level data from the credit registry of the European Central Bank (AnaCredit) and detailed company-level greenhouse gas emissions. Findings The authors show that while Article 173 has pushed French banks to reduce overall brown lending, these banks have increased lending to domestic polluting firms to compensate for foreign lenders pulling out of the French market. Originality/value The study’s results call for higher coordination among European regulators on the implementation of climate regulations.

This paper investigates how market concentration affects bank lending in Vietnam, utilizing an unbalanced panel of 28 commercial banks from 2007 to 2023. Results indicate that greater market concentration enhances bank lending, implying dominant banks use their market power to expand credit. Quantile regression reveals this effect is stronger among banks with high loan growth, underscoring the significance of economies of scale, stable funding sources, and relationship banking in facilitating credit expansion within a concentrated banking sector. Bank-specific factors such as profitability, funding diversification, and CASA ratio also significantly drive loan growth. Robustness checks using Herfindahl-Hirschman indexes based on total loans and deposits confirm these outcomes. Contrary to traditional competition theory, the findings suggest that concentration can foster credit expansion in Vietnam’s banking sector. Notably, the positive concentration-lending nexus is more substantial in higher loan growth quantiles, indicating heterogeneous effects across the credit supply distribution. The study incorporates key macroeconomic variables—GDP growth, inflation, and the COVID-19 pandemic to offer a comprehensive view of Vietnam’s lending landscape. These insights contribute to shaping competition policies and banking reforms in emerging markets, providing empirical support for the relationship between market structure and credit dynamics in transitional economies.

This paper examines the Comparative Assessment of Financial Assets and Equity on Bank Lending rate among Deposit money Banks in Nigeria. The research uses the qualitative approach to the study wherein secondary data sources like annual reports, financial statements, and related literature were used. The results indicate that adequate financial analysis can help credit risk management, and minimize the number of non-performing loans as well as to improve the loan evaluation of deposit money bank which will result in the better financial output. A set of key financial ratios, credit evaluation ratios, and lending results reveal that strategic applications of financial analysis provide the Deposit Money Bank, Nigeria with strength in its lending decisions and general profitability. For effective bank lending, this paper proposes the constant upgrading of modern financial analysis equipment and employees and equip them with capacity building. The paper would be beneficial to the literature as it seeks to shed light on the contribution of financial analysis as an important asset of risk prevention and successful lending in Nigerian banks.

Subprime Credit Disparities Across Financial Institutions: Asian Borrowers and Traditional, Fintech, and Ethnic Bank Lenders

Firm digitalization and bank lending: Evidence from China

Different strokes for different banks: A heterogeneity analysis of Fed QE on bank lending

We study how banking groups adjust corporate credit supply in response to tighter macroprudential policies. Using granular data on syndicated corporate loans, we show that banking groups reallocate lending from bank subsidiaries toward affiliated nonbank financial institutions (NBFIs) following regulatory tightening. Relative to bank subsidiaries within the same group, NBFI subsidiaries expand lending, and their credit supply also increases in absolute terms. We estimate that by ‘banking on’ their nonbanks, banking groups offset, on average, more than half of the contraction in bank lending induced by macroprudential tightening. Our findings highlight an important intra-group reallocation channel through which banking groups can partially offset regulatory constraints and result in greater bank–nonbank interconnectedness.

We provide evidence that banks use loan covenants to prepare for future monetary policy tightening, thereby facilitating the bank lending channel of monetary policy transmission. Specifically, banks with greater monetary policy exposure—those whose lending capacity contracts more as the federal funds rate increases—include stricter financial covenants in loan contracts, granting them flexibility to reduce existing loan commitments during monetary policy tightening when firms breach covenants. The resulting credit reductions to covenant violators by high-exposure banks account for over one-third of the total decline in credit during recent federal funds rate hikes.

This study aims to analyse the determinants and dynamics of Indonesian bank credit growth after the pandemic, focusing on monetary-policy transmission and the moderating role of capital buffer. Using an explanatory quantitative approach, quarterly panel data of 47 commercial banks (Q12020 – Q22025) were estimated with two-step System Generalized Method of Moments (System-GMM). Results show that credit growth exhibits negative dynamic persistence, capital buffer has a significant positive effect, while profitability and macroeconomic variables are insignificant. The central finding is a significantly negative interaction between capital buffer and the BI Rate, validating a capital-hoarding mechanism: well-capitalised banks restrain credit expansion when the policy rate rises. The results are robust to alternative specifications and instrument-validity tests. The study contributes a “Conditional Bank Lending” framework and recommends a dual-speed monetary transmission approach and a more responsive countercyclical capital buffer.

The article substantiates theoretical and methodological approaches and applied aspects of managing problem debt in bank lending under martial law and the transformation of the banking system of Ukraine. The concept of 'problem debt in bank lending' is examined, along with its interpretation in the legislative framework and by domestic and foreign scholars. A set of reasons that cause a borrower to default on their obligations is structured. It has been proven that considering the strengths and weaknesses of problem debt management methods is a key factor in selecting the best approach for a specific loan agreement under which problem debt arises. Based on the analysis of indicators of the state and quality of lending processes in the banking system, trends in the volume, structure, and coverage of NPLs by reserves have been identified, as have the most problematic banking institutions. A sequence of stages for managing problem debt on loans has been proposed, with the implementation of a monitoring and early response system for the emergence of problem credit debt already in the first two stages. This will allow for a timely response to deteriorating performance, determine the direction of work on the problem credit debt of each borrower-debtor, and promptly identify negative trends arising in the banking institution's operations in the credit market.

Purpose This research explores the relationship between banks’ environmental, social, and governance (ESG) performance and lending practices throughout the world. Design/methodology/approach The authors employ a linear regression model with fixed effects and apply the Generalized Method of Moments (GMM), an instrumental variable approach, to address potential endogeneity in analyzing the impact of Environmental, Social, and Governance (ESG) factors on bank lending. The study utilizes data from 53 countries over the period 2002–2022, providing a broad international perspective on the relationship between ESG considerations and lending behavior. Findings The research discovered empirical evidence that banks’ ESG performance significantly influences their lending activities. Interestingly, this relationship is insignificant in developing nations. In addition, this paper examines the moderating influence of the Coronavirus pandemic on the association between ESG performance on bank lending. This paper finds evidence that banks’ increased ESG activities during the health crisis tend to improve their lending performance, especially in developed countries. Our findings indicate that societal trust, bank capital, bank size, and credit risk exposure serve as moderating factors in the relationship between ESG and loan growth. Practical implications Based on the study, this paper presents some implications for policymakers and stakeholders to address some of the pressing concerns. Originality/value This paper examines the role of the COVID-19 health crisis in the association between ESG activities and bank lending across countries.

This article examines how caste shapes access to credit in India’s formal and informal lending markets. Using nationally representative data from the India Human Development Survey (2011–2012), we analyse loan application rates and loan amounts and compare outcomes between General Castes (GC) and three lower-caste groups: Other Backward Castes (OBC), Scheduled Castes (SC) and Scheduled Tribes (ST). We find that GC households are more likely to apply for and receive larger loans from formal banks, while lower-caste households rely more heavily on informal moneylenders. A substantial share of these credit gaps—particularly in bank lending—remains unexplained by observable characteristics, pointing to potential caste-based discrimination. In contrast, moneylenders do not appear to penalize lower-caste borrowers to the same extent and, in some cases, lend more than expected to OBC households. These findings suggest that entrenched caste hierarchies continue to influence credit access in India, with formal institutions reinforcing rather than correcting social inequalities.