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The study aims to investigate the factors that influence banks' loan supply in Sierra Leone. More specifically, it seeks to look into the effects of risk premium, leverage ratio and credit risk on banks' loan supply in Sierra Leone.

Using annual bank level data on an unbalanced panel of 13 commercial banks data observed over a period of ten years (2002 to 2011), the study employs time and bank‐specific fixed effects model for estimation.

The findings indicate that risk premium, the share of non‐performing loans in the banks' loan portfolio, tier 1 capital ratio (leverage ratio) and local currency deposit levels positively and significantly affect the share of loan supply to the private sector in banks' earning assets. On the other hand, advances to local currency deposit ratio and bank size have significant negative effects on the share of loans in banks assets. The study also finds bank type and the growth rate of real GDP (a proxy for economic activity) to be important determinants of the share of loans in banks' earning assets.

The study recommends that the monetary authorities, banking practitioners and the government should pay keen attention to the key risk factors such as non‐performing loans and risk premium in the operation of the banking sector to boost commercial banks' loan supply.

Sierra Leone's banking sector presents a unique opportunity to study bank loan supply in relation to bank‐specific features in the context of post‐war financial reconstruction.

Since 1984 Iranian banks has been operating under Islamic principles. This paper investigates dynamics of loans and the difficulties that this banking system is facing. During the period of Islamic banking in Iran, banks experienced a significant increase in the supply of loans. Many factors could affect the behaviour of lending activities including rate of return, inflation, and government intervention. In this paper, a statistical model is developed to investigate the behaviour of supply of loans in Iranian banks in terms of the causal relationship between the main factors, which affect the supply of loans. The results indicate that government intervention which aims managing of funds has played a more important role than that of economic factors.

The purpose of this study is to examine the interaction between banks’ lending to public and private sectors and house prices using data from the Iranian banking system including, commercial government-owned banks (CGBs), specialized government-owned banks and private banks.

The authors use quarterly data from the second quarter of 2004 to the first quarter of 2016 and apply structural vector autoregression models.

The results show that: a positive shock to the loan supply to the private sector triggers a positive response from house prices; a positive shock to the loan supply to the public sector does not trigger a positive response from house prices; house price appreciations contribute significantly to banks’ lending to the public sector but not lending to the private sector; each loan supply by three different types of banks influences house prices positively; and CGBs’ lending to the private sector does not respond to house price shocks.

Although the relationship between banks’ lending and house prices is well-established in the literature, existing studies have not yet examined whether bank ownership matters for the link between banks’ lending and house prices.

Due to the rapid development and innovation in the Internet-based technology, conventional banks are under pressure and have to compete with Internet-based finance. This has made banks adopt measures to improve operational efficiency and reduce input and increase output.

The authors had proposed a two-stage fairness concern efficiency model based on the classical theory of data envelopment analysis (DEA) and performed an empirical study to measure agricultural loan efficiency in the 20 major Chinese banks.

The findings of the empirical analysis are as follows: (1) peer-induced fairness concern has no impact on deposit efficiency in a centralized bank supply chain; (2) The China Merchants Bank (CMB) has the third lowest deposit efficiency; (3) monotonicity of loan efficiency with input allocation depends on a bank's ownership structure; (4) efficiency ranks are strongly affected by the fairness concern; (5) most Chinese banks show a low agricultural loan efficiency.

This paper contributes to the literature in several ways. First, to the best of the authors’ knowledge, this is the first attempt to analyze agricultural loan efficiency for a bank supply chain system with the fairness concern. This work reveals the hidden factor that restricts loan efficiency of Chinese banks. Second, the proposed fairness concern two-stage DEA model has shown good ability for full ranking. It can provide a new perspective to the classical DEA literature for ranking decision-making units (DMUs). Third, the authors have demonstrated empirical bank efficiency for the 20 major Chinese banks.

The purpose of this paper is to investigate how entrepreneurs demand for external finance changed as the economy continued to be mired in its third and fourth years of the global financial crisis (GFC) and whether or not external finance has become more difficult to access as the recession progressed.

Using a large-scale survey data on over 30,000 UK small- and medium-sized enterprises between July 2011 and March 2013, the authors estimate a series of conditional probit models to empirically test the determinants of the supply of, and demand for external finance.

Older firms and those with a higher risk rating, and a record of financial delinquency, were more likely to have a demand for external finance. The opposite was true for women-led businesses and firms with positive profits. In general finance was more readily available to older firms post-GFC, but banks were very unwilling to advance money to firms with a high-risk rating or a record of any financial delinquency. It is estimated that a maximum of 42,000 smaller firms were denied credit, which was significantly lower than the peak of 119,000 during the financial crisis.

This paper provides timely evidence that adds to the general understanding of what really happens in the market for small business financing three to five years into an economic downturn and in the early post-GFC period, from both a demand and supply perspective. This will enable the authors to consider what the potential impacts of credit rationing on the small business sector are and also identify areas where government action might be appropriate.

The purpose of this paper is to examine the relevance of the bank lending channel (BLC) of monetary policy and the bank efficiency in Egypt.

This paper examines the effectiveness of bank lending channel using generalized method of moments GMM model during the period from 1996 to 2014. Also, it uses stochastic frontier approach (SFA) to examine the bank efficiency in Egypt.

This study supports the relevance of the BLC using panel data. Moreover, applying SFA, this paper computes cost efficiency taking account of both time and country effects directly. The finding suggests that banks with low inflation and high GDP tend to perform more efficiently.

The limitation of the study is examining one country only.

The finding signals that the Central Bank of Egypt (CBE) should adjust interest rate in order to stabilize the bank loan supply.

It is important for the CBE and Egyptian banks because it highlights the importance of BLC.

It examines one channel of monetary policy and bank efficiency in Egypt.

Using ethnicity as our point of focus, the authors consider the dynamics of the demand for bank loans, and the willingness of banks to supply them, as the UK economy entered the COVID-19 pandemic in early 2020 with a particular focus on potential behavioural differences on the demand-side and discrimination on the supply-side. In doing so we directly address crisis induced financial concerns and how they played out in the context of ethnicity.

Using the most recent ten quarterly waves of the UK SME Finance Monitor survey the authors consider whether ethnicity of the business owner impacts on the decision to apply for bank loans in the first instance. The authors then question whether ethnicity influences the banks decision to meet or reject the request for a bank loan.

The authors’ pre-COVID-19 results show that there were no ethnic differences in loan application and success rates. During COVID-19, both white and ethnic business loan application rates rose significantly, but the scale of this increase was greater for ethnic businesses. The presence of government 100% guaranteed lending also increased general loan success rates, but again the scale of this improvement was greater for ethnic businesses.

The authors show very clearly that differences in the willingness of banks to supply loans to SMEs relate very explicitly to firm specific characteristics and ethnicity either plays no additional role or actually leads to improved loan outcomes. The data is for the UK and for a very unique COVID time which may mean that wider generalisability is unwise.

Ethnic business owners should not worry about lending discrimination or be discouraged from applying for loans.

The authors identify at worst no lending discrimination and at best positive ethnic discrimination.

This is one of the largest COVID-19 period studies into the financing of ethnic businesses.

The purpose of this paper is to explore the impact of the credit expansion in 2009 and 2010 in China on the capital structure of listed real estate companies.

Chinese listed real estate companies are divided into two groups, state-owned and non-state-owned, because their access to credit markets have different priority to state-owned banks that dominate bank lending. The difference-in-differences approach is employed to test the impact of changes in leverage ratios and loan ratios before and after the credit expansion period in state-owned firms and non-state-owned firms.

Using quarterly panel regressions, the authors find that during the credit expansion period, state-owned companies exhibit a relatively greater increase in leverage ratios than non-state-owned firms. State-owned firms have greater increases in book leverage ratios, market leverage ratios and long-term debt ratios by 5.2, 4.9 and 1.1 per cent, respectively. It is also shown that loan ratios have increased more in state-owned firms than non-state-owned firms during the credit expansion period.

The paper explores only the impacts of credit expansion on capital structure of listed real estate firms in China. Further studies can be conducted to investigate the impact of credit supply on corporate investment decisions of real estate firms and on real estate markets.

The findings can help explain the surge in land and housing prices after 2008 in China. Deng et al. (2015) find that state-owned real estate firms paid more for land price than non-state-owned firms, which contributed to upward pressure on housing prices. This paper shows that such “over-investment” may be due to the increase of debt financing and availability of bank loans to real estate firms. Thus the credit market can affect real estate markets through debt financing at company level.

This paper is the first to investigate the impact of credit supply on capital structure of real estate companies, and presents evidence of the importance of credit supply as a determinant of capital structure.

The purpose of this paper is to theoretically and empirically examine the lending behavior of Vietnamese banks.

A firm-banking model was established, considering risk-taking behavior and the regulatory environment. Based on the theoretical model, a simultaneous equation system was specified that considered loan growth and deposit growth as endogenous variables to empirically investigate lending behavior in Vietnam’s banking sector. Two-stage least square estimators were employed using a micro-level panel data set comprising 39 Vietnamese commercial banks.

The empirical results demonstrate the divergence in the lending behavior of private and state-owned banks. The regressions results support the predictions of the theoretical model on the positive effect of economic growth and the negative effect of the government bond rate on bank lending. The results also suggest that deposit growth and liquidity constraint significantly influence loan supply in private banks, while equity growth is the determinant of lending behavior in state-owned banks. Nevertheless, the banks’ non-performing loan rate, which proxies for the expected default probability of loans, is found to not significantly affect loan supply.

Despite the efforts to capture the idiosyncratic characteristics of the Vietnamese banking system, this study does not fully take into account distinctive nature of the Vietnamese banking system.

The paper suggests implications for the government monetary policy.

The contribution of this paper is twofold. First, it introduces a firm-banking theoretical model that allows banks offering different lending rates and modeled under different aspects of modern banking such as risk-taking behavior and regulatory environment. Second, it is a very first study empirically investigating the lending behavior of Vietnamese banks.