## Lending Standards and Output Growth

_IMF Working Papers, January 26, 2018_

## Source details

**Canonical URL:** [Lending Standards and Output Growth](https://www.imf.org/en/publications/wp/issues/2018/01/26/lending-standards-and-output-growth-45595)

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- [Markdown version](/en/publications/wp/issues/2018/01/26/lending-standards-and-output-growth-45595/index.md)
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## Bibliographic details
- Authors: Divya Kirti
- Published: January 26, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484339671.001

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### Main findings
- The high-yield (HY) share of bond issuance is procyclical, indicating lending standards in bond markets are extrapolative.
- Credit booms accompanied by deteriorating lending standards (rising HY share) are followed by lower GDP growth in the subsequent three to four years.
- Credit booms with these features "deserve attention from policy makers."

### Data and methodology
- Observational scope: panel of 38 countries.
- Lending-standards proxy: HY share of bond issuance constructed from primary debt capital markets information.

### Subjects and keywords
- Subjects: Bank credit, Consumer credit, Credit, Credit booms, Emerging and frontier financial markets, Financial markets, Money
- Keywords: Bank credit, behavioral finance, Consumer credit, Credit, credit boom, Credit booms, credit cycles, Emerging and frontier financial markets, GDP gap, Global, HY share, lending standard, Lending standards, risky debt share, share help, share of bond issuance, share of issuance, WP

*IMF Working Paper — Divya Kirti, "Lending Standards and Output Growth", January 26, 2018.*

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## Content in this bundle

- **Lending Standards and Output Growth, WP/18/23, January 2018**
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_Source: https://www.imf.org/en/publications/wp/issues/2018/01/26/lending-standards-and-output-growth-45595_