Banks and the real economy : an assessment of the research
Abstract
We review research on the effects of banks on the real economy, including, but not limited to articles in this Special Issue of the Journal of Corporate Finance. We focus primarily on US and European policy interventions that provide quasi-natural experiments with relatively exogenous shocks to bank output. We concentrate on single-country settings, avoiding potentially confounding differences in language, culture, law, currency, and so on, that complicate cross-country investigations. We also largely avoid the effects of financial crises, which are not exogenous to the banking system. The evidence strongly suggests positive effects of banks on the real economy.
Citation
Berger , A , Molyneux , P & Wilson , J O S 2020 , ' Banks and the real economy : an assessment of the research ' , Journal of Corporate Finance , vol. 62 , 101513 . https://doi.org/10.1016/j.jcorpfin.2019.101513
Publication
Journal of Corporate Finance
Status
Peer reviewed
ISSN
0929-1199Type
Journal item
Rights
Copyright © 2019 Elsevier B.V. This work has been made available online in accordance with publisher policies or with permission. Permission for further reuse of this content should be sought from the publisher or the rights holder. This is the author created accepted manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1016/j.jcorpfin.2019.101513
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