What is the Effect of Credit Standards and Credit Demand on Loan Growth? Evidence from the Croatian Bank Lending Survey.

This paper explores the results from the Bank Lending Survey and bank-level data on loan quantities and prices to determine the effects of lending standards and loan demand on credit growth in Croatia for the period from the third quarter of 2012 to the last quarter of 2015. Panel analysis has shown that there are statistically significant effects of credit standards and demand on the growth of certain types of loans. The results of the counterfactual analysis indicate that credit demand affected loan growth more than credit standards, especially for loans to enterprises. [ABSTRACT FROM AUTHOR]