OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
 

Corporate Net Lending

A Review of Recent Trends You or your institution have access to this content

Authors:
Christophe André, Stéphanie Guichard, Mike Kennedy, Dave Turner
Publication Date
06 Dec 2007
Bibliographic information
No.:
583
Pages
45
DOI
10.1787/044308023722

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Since 2001, OECD corporate net lending has risen sharply. This paper examines the main forces at play behind this run-up and provides some insight into whether and how they might possibly unwind in the future, a process that may already be underway. It shows in particular that, the increase is partly temporary with some of it likely to fade with the cycle and the ongoing adjustments in the financial and housing sectors. On the other hand, part of the increase reflects structural changes in corporate behaviour and in their environment and is likely to persist. The paper also points to cross-country differences reflecting, for example, the role of competiveness in Japan and continental Europe, and of the financial sector in the United Kingdom.
Keywords:
corporate investment, corporate net lending, financial corporations, corporate saving
JEL Classification:
  • E21: Macroeconomics and Monetary Economics / Macroeconomics: Consumption, Saving, Production, Employment, and Investment / Consumption; Saving; Wealth
  • E22: Macroeconomics and Monetary Economics / Macroeconomics: Consumption, Saving, Production, Employment, and Investment / Capital; Investment; Capacity
  • F21: International Economics / International Factor Movements and International Business / International Investment; Long-Term Capital Movements
  • G30: Financial Economics / Corporate Finance and Governance / General