Bank credit growth during financial crisis: An empirical analysis

The paper explores the relationship between bank size and bank credit growth during the recent period of financial crisis (2007-2009). We find that small banks are able to establish relationships based more extensively on the use of soft information especially in periods of crisis. The results show how small banks increased the credit supply unlike the larger banks. Control variable for firms demand factors do not seem to affect the changes in bank credit availability. © EuroJournals, Inc. 2012.