November 21, 2025Review of Pacific Basin Financial Markets and Policies

Global Loan Supply and Contracting during the Crises: Evidence from the Financial Development of Countries

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Authors

YHYin-Siang Huang NMNgoc Thuy Mai CLChih-Yung Lin

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Implication

Analysis shows increased loan spreads and covenant requirements in response to financial crises, suggesting financial development mitigates effects on bank lending.

Key Points

Increased covenant requirements and loan spreads occurred during financial crises, reducing loan maturity significantly.
Analysis of 77,713 syndicated loan observations from 46 countries between 1985 and 2015 found critical changes in lending conditions.
The findings indicate that countries with higher financial development experienced a mitigation of negative lending impacts during crises.
Understanding these effects informs strategies to enhance financial resilience in global banking systems.

Cite This Study

Huang et al. (2025) studied this question.

synapsesocial.com/papers/6924e3f2c0ce034ddc34f127 https://doi.org/10.1142/s0219091525500213

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Implication

Analysis shows increased loan spreads and covenant requirements in response to financial crises, suggesting financial development mitigates effects on bank lending.

Global Loan Supply and Contracting during the Crises: Evidence from the Financial Development of Countries

Discussion

Member takes

Implication

Key Points

Cite This Study

Global Loan Supply and Contracting during the Crises: Evidence from the Financial Development of Countries

Discussion

Member takes

Implication

Key Points

Cite This Study

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