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Graphical abstract Abstract This paper examines the determinants of the domestic credits in the panel data of 61 developing economies (22 emerging markets and 39 non-emerging developing economies) for the period from 1984 to 2016. The paper finds that the income and the money supply are positively associated with the domestic credits. There also are the negative effects of the current account balance and the interest rate differences on the domestic credits. Further analyses for the subcomponents of the overall political risk measures indicate that the better socioeconomic conditions (i.e. the less poverty, the lower unemployment, and the higher consumer confidence) and the lower corruption positively affect the domestic credits. [ABSTRACT FROM AUTHOR]

In this study, we conduct a panel analysis of Islamic and conventional banks to ascertain whether Islamic banks are able to sustain financing supply and whether its growth is higher than conventional bank lending growth in times of stress. For concreteness, we also assess whether the sustained financing supply of Islamic banks is justified by a concomitant increase in Islamic deposit growth and is not linked to excessive risk taking. Utilizing a panel sample of 25 Islamic banks and 114 conventional banks from 10 dual-banking countries, we observe sustained financing supply by Islamic banks but significant reduction in the lending growth by conventional banks during the crisis period. The results further suggest that the financing growth of Islamic banks is higher than the lending growth of conventional banks during the crisis period. However, we find no clear evidence that the deposit growth of Islamic banks behaves differently during the period. Finally, there is no indication to suggest that Islamic banks exhibit excessive risk taking in times of stress. Our results contribute to the evidence supporting the contributive role of the Islamic banking system to financial and economic stability. [ABSTRACT FROM AUTHOR]

• This is the first study to examine the effect of economic dual circulation structure (DCS) on credit growth based on the view of structure of economic domestic and external demand. Findings suggest that DCS significantly reduces credit growth. • With free trade zones' establishment as the instrumental variable and multiple periods DID test approach, the endogenous problem is better solved. • The impact of DCS on credit growth depends on industrial structure and technological innovation level. • Fixed investment is one channel of effect of DCS on credit growth. This paper empirically examines the impact of the economic dual circulation structure (DCS) on credit growth for the first time, thus expanding the existing literature on economic structure and credit growth. Using China's provincial data from 1995 to 2021, findings indicate that DCS significantly reduces credit growth, in areas with high ratio of value-added of service-to-manufacturing or with high technological innovation level, this negative effect become more significant. Additionally, fixed investment is one mechanism of this effect. our research is helpful for understanding China's sustainable economic growth and credit growth. [ABSTRACT FROM AUTHOR]

This paper focuses on banks’ risk-taking arising from potentially excessive growth of loans and off-balance sheet credit commitments. Credit quality is investigated both in macro and micro context, using a panel of 28 European countries over 2004–2014 and a panel of 478 European banks over 2004–2013. The dynamic panel data estimation results confirm that an increase in the ratio of credit commitments to total assets is a two year ahead warning indicator of growth in the ratio of non-performing loans and loan loss reserves. Simultaneous equation estimation exemplifies that the adverse effect of credit commitments on credit quality stems from the credit boom-bust context. As the economic impact of credit commitments to credit quality is significant compared to that of traditional credit quality determinants (real GDP growth and real growth in loans), the consideration of a credit commitments measure may improve timely recognition of credit risk accumulation episodes. [ABSTRACT FROM AUTHOR]

Summary: Has microfinance become crisis-prone like other sources of finance? This paper provides empirical evidence on credit growth patterns of microfinance institutions in the early 2000s. Results suggest that microfinance has become vulnerable to financial turmoil. In the global financial crisis credit growth dropped sharply. Moreover, the crisis impact was more severe when institutions had been active in tapping domestic and international financial markets for funds and had operated in countries experiencing a severe post-crisis recession. Finally we find that microcredit adopted the cyclical characteristics of credit growth in the traditional banking sector, with credit booms followed by credit busts. [Copyright &y& Elsevier]

• We examine the effects of a banking crisis on credit growth in developing countries using the local projection method. • We consider the roles of two states of financial conditions: financial cycles and financial development. • The banking crisis has an adverse impact on credit cycle, and this negative effect is more substantial during financial boom. • The negative crisis effect is further magnified in countries with the high level of financial development. This study examines how a banking crisis affects credit growth in developing countries by considering two states of financial conditions: financial cycles and financial development. We estimate dynamic responses of credit growth to a banking crisis by using the local projection method. Our empirical results reveal that a banking crisis has an adverse impact on the credit cycle, and this negative effect is more substantial during a financial boom. We also find that the negative crisis effect is further magnified in countries with a high level of financial development. [ABSTRACT FROM AUTHOR]