The Impact of the Financial Crisis on UK Company Performance
|
|
- Camron Maxwell
- 7 years ago
- Views:
Transcription
1 The Impact of the Financial Crisis on UK Company Performance Rebecca Riley*, Chiara Rosazza Bondibene* and Garry Young** *National Institute of Economic and Social Research & CFM **Bank of England & CFM 24 June 2014 Using Secondary Data Analysis to Research Economic Performance Economic Performance, Policy and Management Cluster Roundtable ESRC Secondary Data Analysis Initiative NIESR, London Disclaimers: Any views expressed cannot be taken to represent those of the Bank of England or to state Bank of England policy. This work contains statistical data which is Crown Copyright; it has been made available by the Office for National Statistics (ONS) through the Secure Data Service (SDS) and has been used by permission. Neither the ONS nor SDS bear any responsibility for the analysis or interpretation of the data reported here. This work uses research datasets which may not exactly reproduce National Statistics aggregates. Acknowledgements: The financial support of the Economic and Social Research Council grant reference ES/K00378X/1 is gratefully acknowledged.
2 Motivation Stylised facts UK labour productivity fell sharply during the recession of and recovered only sluggishly after that In level terms productivity is currently around 15% below a simple extrapolation of its pre-crisis trend In sharp contrast with the experience of other post-war recessions in the UK when the fall was less steep and the recovery was quicker By 2012 the stock of real bank debt held by UK corporations was more than 20% below its peak before the crisis, much of which reflected a tightening of credit supply
3 Productivity and bank lending following recessions Constant Price GDP Per worker ( 000, per quarter) Real stock of PNFC Bank debt outstanding ( bn)
4 What can we learn about the banking crisis and productivity by looking at firm level data? A banking crisis may inhibit efficient resource allocation across businesses Using firm level data we can examine whether aggregate productivity weakness arises because of resource misallocation between existing firms and/or a lack of creative destruction or cleansing effect of recession And may hinder investment growth Using firm level data we can measure these effects by comparing credit constrained bank dependent firms to similar firms that do not rely on bank finance or that were not credit constrained
5 Using firm-level data to break down productivity growth into different components Overall productivity growth = Average productivity growth within surviving businesses + Reallocation towards more productive surviving businesses + Reallocation towards new businesses + Reallocation from exiting businesses
6 Productivity dynamics: Related literature Other studies analyse the pattern of productivity dynamics in the wake of a financial crisis: Japan during the 1990s Griffin and Odaki (2009) US manufacturing firms during the Great Recession Foster, Grim and Haltiwanger (2013) UK firms during the Great Recession Barnett, Chiu, Franklin and Sebastia-Barriel (2014)
7 Data: the Annual Respondents Database (ARD) Establishment level survey which covers businesses in the non-financial nonfarm market sectors Data available for (now 2012) and for manufacturing back to 1974 A census of larger businesses and a stratified random sample of businesses with less than 250 employees It contains basic information for all businesses in the sampling frame (the IDBR, a list of all UK businesses registered for tax purposes) making it possible to: Determine business entry and exit Calculate grossing weights We focus on firms with 10 or more employees since the longitudinal sample is insufficient to support representative analysis of micro firms: The probability of observing a micro business in two separate years (conditional on being live) is only 1 in 10,000 We aggregate the data up to the enterprise level, as banking relationships are more likely to take place at this level of aggregation Financial information is published in current values GVA deflators available at 2- and 3-digit sector level are used to construct real values
8 Trends in labour productivity, UK ARD decomposition sample ABI & ABS Market sector Differences between the series expected because of differences in sector and size coverage and in cleaning and weighting procedures All these series exhibit broadly the same pattern over time, with labour productivity in 2011 a little more than 10% below a simple linear extrapolation of the trend
9 Decomposition of 4-year changes in labour productivity Growth components External Within Between Entry Exit Net entry Total Total Productivity growth(%) Productivity growth change (% points) to to Source: Annual Respondents Database, ONS, and authors' calculations. Notes: Growth components Within, Between, Entry and Exit sum to Growth Total. Entry and Exit sum to Net entry. Between, Entry and Exit sum to External Total. Non-farm non-financial market sectors excluding mining & quarrying, utilities and real estate activities. Britain. Firms are classified as live if they are active and have 10 or more persons employed.
10 Decomposition of 4-year changes in labour productivity (continued) Sub-group Growth components External Productivity growth change (% points) Within Between Entry Exit Net entry Total Total Manufacturing to to Services SMEs to to to to Large to to Source: Annual Respondents Database, ONS, and authors' calculations. Notes: Growth components Within, Between, Entry and Exit sum to Growth Total. Entry and Exit sum to Net entry. Between, Entry and Exit sum to External Total. Non-farm non-financial market sectors excluding mining & quarrying, utilities and real estate activities. Britain. Firms are classified as live if they are active and have 10 or more persons employed.
11 per annum 8% Decomposition of 1-year changes in labour productivity 6% 4% 2% 0% -2% % -6% -8% External Within Total
12 contribution per annum External restructuring and productivity growth, service sector SMEs, % 6% 4% 2% 0% -2% % -6% -8% More bank dependent sectors Other sectors Less bank dependent sectors Market services
13 Productivity dynamics: Conclusions The reduction in UK labour productivity between 2007 and 2011 was first and foremost the result of a broad-based decline in productivity within businesses Not a reduction in the contribution of business reallocation to aggregate productivity growth. The question of what has caused this productivity drop within firms remains (and banking sector collapse may be one reason). The recession does appear to have had some "cleansing effect" or been associated with creative destruction. Albeit not sufficient to offset fully the large drop in productivity within firms. We do observe patterns that suggest an empirical link between banking sector collapse and aggregate productivity via less efficient resource allocation Downward trend in the contribution of external restructuring due to SMEs in the more bank dependent sectors. Reduction in the productivity contribution of entering firms. Comparison of manufacturing firms in two different recessions suggests we might have expected a slightly higher productivity contribution from external restructuring (although key differences are due to the within component) Data limitations Exclusion of micro firms. What is the counterfactual? We cannot say with certainty what the productivity contribution of external restructuring would have been in the absence of a banking sector crisis.
14 A Quasi-Experiment Exploit exogenous variation induced by the financial crisis in credit availability to companies to investigate impacts of credit supply shocks Compare outcomes for companies who were subjected to tougher credit constraints to outcomes for companies that were less likely to be constrained Quasi-experimental approach Divide firm observations into treatment and control groups based on main bank lender Difficulty switching to a new lender during the crisis Provide direct estimates of the impact of credit constraints on UK firms Here we consider impacts on firm survival and the stock of fixed capital
15 Quasi-experimental evidence: Related literature Assessing the impact of credit constraints on real economic outcomes using variation in ease of access to external finance induced by the financial crisis in a natural experiment type approach Employment, unemployment and firm closure Chodorow-Reich, QJE, Bentolila, Jansen, Jiménez and Ruano, CEPR DP 9776, Duygan-Bump, Levkov and Montoriol-Garriga, Federal Reserve Bank of Boston QAU WP QAU10-6, Investment Almeida, Murillo, Laranjeira and Weisbenner, NBER WP 14990, Productivity (Krishnan, Nandy and Puri, NBER WP 20149, 2014.) On-going research at the Bank of England The importance of financial circumstances for firms investment decisions Difficulties in assessment due to issues of reverse causation See review by Bond, S. and J. Van Reenen (2007) in J. Heckman and E. Leamer, eds. Handbook of Econometrics
16 basis points The Different Experiences of UK Banks Bank funding costs (CDS premia) Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan From the Large Review: Having lent aggressively in the run-up to the crisis, RBS s lending volumes to SMEs have fallen faster than peers and its market share has contracted from an unsustainably high share in 2008, to a level more consistent with its customer base.
17 Data: Financial Analysis Made Easy (FAME) Company Accounts information held by Companies House provided by Bureau Van Dijk annual historical discs subsidiaries removed from the dataset Chargeholder recorded tells us which banks a company is borrowing from Data issues selective reporting of key accounts information reporting of employment and output is particularly sparse; better coverage of fixed assets decline over time in tendency to report detailed accounting information self-reporting of SIC codes
18 Difference-in-differences set-up Define Treatment (T) and Control (C) group T = Companies with an outstanding charge with RBS before the credit crunch and with above median short term leverage C = Companies with an outstanding charge with HSBC before the credit crunch or with RBS and with below median short term leverage Track difference in the development of outcomes between the T and C groups since the financial crisis FY 2007/8 - FY 2011/12 And compare this to differences in the development of outcomes between these two groups in a normal period (i.e. a pre-recession period) Formally Y Y RBS I ( t 2007 ) it 4 it it RBS it yr t ind 2 dig t X it it Where ɣ identifies the differential effect of credit constraints associated with being attached to a distressed bank Outcomes (Y) considered Log (1+Debt) Log (1+Fixed Assets) Indicator equal to one if a company is inactive (zero otherwise)
19 RBS borrowers relative to HSBC borrowers Debt held by companies with outstanding charges: RBS relative to HSBC Short term loans and overdrafts Long term debt Source: FAME BvD and authors calculations. Notes: Companies in the non-financial non-farm business sectors excluding the Mining, Utilities and Real Estate industries. Companies who do not have an outstanding charge with any other lender and who report their debt.
20 PNFC Switching Between Lenders Probability of changing lender after: 1 year 2 years 3 years 4 years All* Big Four HSBC RBS Source: FAME BvD and authors calculations. Notes: Companies in the non-financial non-farm business sectors excluding the Mining, Utilities and Real Estate industries. Companies who do not have an outstanding charge with any other lender. Big Four = RBS, Lloyds, HSBC, Barclays. Switching to another lender evaluated over the period Note that there was not a marked increase or decrease in this measure of switching around the time of the financial crisis. *Switching between 15 categories of lender
21 Sample Characteristics Control Treatment Control Treatment Exit rate Start-up Total asset distribution Young nd quintile Foreign owned rd quintile Exporter th quintile Foreign subsidiaries th quintile Count court judgment 0-24 mths Group accounts Normal credit score Full accounts Short term gearing Missing loans at time t Collateral Companies Notes: Companies in the non-financial non-farm business sectors excluding the Mining, Utilities and Real Estate industries. Companies who do not have an outstanding charge with any other lender and who report short term loans and overdrafts. Control group equals companies with an outstanding charge with HSBC before the credit crunch or with RBS and with below median short term leverage. Treatment group equals companies with an outstanding charge with HSBC before the credit crunch or with RBS and with below median short term leverage.
22 Short Term Loans and Overdrafts: Impact estimates DPV: 4-year change in log real loans Impact estimate Falsification test t=2004, 2007 t=2001, 2004 coeff pval coeff pval OLS all (0.109) (0.394) Robust regression all *** (0.001) * (0.056) OLS stayers ** (0.021) (0.526) Robust regression stayers *** (0.000) (0.225) Observations all stayers Notes: Sample includes firms that had an outstanding charge with either HSBC or RBS at times t and that did not have an outstanding charge with any other lender and for whom we observe short term loans. Treatment group includes firms with RBS with above median leverage. Companies in the non-financial non-farm business sectors excluding the Mining, Utilities and Real Estate industries. p-values in brackets. All regressions include the following controls, measured at time t: size (measured by the quintile in the distribution of total assets), group accounts, full accounts are filed, start-up (age 0-2 years), young (age 0-5 years), foreign owned, exporter, owns foreign subsidiaries, county court judgements in last 2 years, normal credit score, short term leverage (short term loans relative to total assets), collateral (fixed assets relative to total assets), filing quarter, 2-digit industry dummies and their interactions with times t, treatment group indicator. OLS standard errors clustered by chargeholder. Robust standard errors. Loans deflated by 2 and 3 digit industry GVA deflators. Stayers weighted to sample total by industry, year, size, and bank.
23 Fixed Assets: Impact estimates DPV: 4-year change in log real capital Impact estimate Falsification test t=2004, 2007 t=2001, 2004 coeff pval coeff pval OLS all (0.250) * (0.067) Robust regression all *** (0.000) (0.239) OLS stayers ** (0.014) (0.310) Robust regression stayers *** (0.000) (0.498) Observations all stayers Notes: Sample includes firms that had an outstanding charge with either HSBC or RBS at times t and that did not have an outstanding charge with any other lender and for whom we observe short term loans. Treatment group includes fimrs with RBS with above median leverage. Companies in the non-financial non-farm business sectors excluding the Mining, Utilities and Real Estate industries. p-values in brackets. All regressions include the following controls, measured at time t: size (measured by the quintile in the distribution of total assets), group accounts, full accounts are filed, start-up (age 0-2 years), young (age 0-5 years), foreign owned, exporter, owns foreign subsidiaries, county court judgements in last 2 years, normal credit score, short term leverage (short term loans relative to total assets), collateral (fixed assets relative to total assets), log capital, filing quarter, 2-digit industry dummies and their interactions with times t, treatment group indicator. OLS standard errors clustered by chargeholder. Robust standard errors. Capital deflated by 2 and 3 digit industry GVA deflators. Stayers weighted to sample total by industry, year, size, and bank.
24 Exit Rates: Impact estimate DPV: 4-year exit rate Impact estimate Falsification test t=2004, 2007 t=2001, 2004 coeff pval coeff pval probit *** (0.000) (0.767) Observations 48,058 51,997 Notes: Sample includes firms that had an outstanding charge with either HSBC or RBS at times t and that did not have an outstanding charge with any other lender and for whom we observe short term loans. Treatment group includes fimrs with RBS with above median leverage. Companies in the non-financial non-farm business sectors excluding the Mining, Utilities and Real Estate industries. p-values in brackets. All regressions include the following controls, measured at time t: size (measured by the quintile in the distribution of total assets), group accounts, full accounts are filed, start-up (age 0-2 years), young (age 0-5 years), foreign owned, exporter, owns foreign subsidiaries, county court judgements in last 2 years, normal credit score, short term leverage (short term loans relative to total assets), collateral (fixed assets relative to total assets), filing quarter, 2-digit industry dummies and their interactions with times t, treatment group indicator. Standard errors clustered by chargeholder. Marginal effects.
25 2007=100 Productivity amongst companies with outstanding charges: at LBG/RBS or HSBC/Barclays less distressed bank distressed bank Source: FAME BvD and authors calculations. Notes: Companies that report employment and turnover to Companies House and that have an outstanding charge with either LBG/RBS or HSBC/Barclays and with no other bank. Non-farm non-financial market sector excluding Real Estate, Utilities, Mining. Distressed banks LBG/RBS. Less distressed banks HSBC/Barclays. Productivity metric = median turnover per head.
26 Quasi-experimental evidence: Conclusions Did a credit supply shock reduce productivity? Not clear that forbearance is a major issue (outside real estate) Some evidence that an adverse supply shock has reduced growth in the capital stock, which in turn is likely to have reduced labour productivity growth Are credit constraints a key driver of recent productivity weakness? Our estimates measure only a partial effect Key explanations of recent productivity weakness need to be able to explain the weakness of productivity within companies Further research possibilities Direct estimates of the effects of credit constraints on productivity (and investment) The importance of capital-labour substitution in explaining productivity weakness Possibility of linking FAME to ONS datasets
27 References Riley, R., Rosazza-Bondibene, C., and G. Young (2014) The financial crisis, bank lending and UK productivity: sectoral and firm-level evidence, National Institute Economic Review, R17-R34. Riley, R., Rosazza-Bondibene, C., and G. Young (2014) Productivity Dynamics in the Great Stagnation: Evidence from British Businesses, Centre For Macroeconomics Discussion Paper No
THE OTHER PRODUCTIVITY PUZZLE BUSINESS DYNAMISM AND PRODUCTIVITY GROWTH BEFORE THE CRISIS
THE OTHER PRODUCTIVITY PUZZLE BUSINESS DYNAMISM AND PRODUCTIVITY GROWTH BEFORE THE CRISIS Albert Bravo Biosca and Stian Westlake October 2014 (Re-issued in October 2015 following amendments in the original
More informationDiscussion of Bacchetta, Benhima and Poilly : Corporate Cash and Employment
Summary Discussion of Bacchetta, Benhima and Poilly : Corporate Cash and Employment Vivien Lewis (KU Leuven) "New Developments in Business Cycle Analysis : The Role of Labor Markets and International Linkages"
More informationRebecca Riley*, Chiara Rosazza-Bondibene* and Garry Young**
Riley, Ro s a z z a-bo n d ib e n e a n d Yo u n g Th e f i n a n c i a l crisis, b a n k l e n d i n g a n d u k p r o d u c t i v it y: s e c t o r a l a n d f ir m-level evidence R17 the financial crisis,
More information3 Bank lending and the recovery
3 Bank lending and the recovery Introduction The role of banks as suppliers of credit to the economy has been highly scrutinised during the recession. A key question has been whether constrained bank lending
More informationHow To Understand The Economic Benefits Of An Sflg Loan
ECONOMIC EVALUATION OF THE SMALL FIRMS LOAN GUARANTEE (SFLG) SCHEME Marc Cowling INSTITUTE FOR EMPLOYMENT STUDIES JANUARY 2010 URN 10/512 Acknowledgements The author would like to thank Gemma Bird and
More informationTrends in Lending. July 2014
Trends in Lending July BANK OF ENGLAND Trends in Lending July This quarterly publication presents the Bank of England s assessment of the latest trends in lending to the UK economy. (1) It draws mainly
More informationTHE PROPERTY MARKET AND THE MACRO-ECONOMY
THE PROPERTY MARKET AND THE MACRO-ECONOMY In the wake of the Asian financial crisis, property prices in Hong Kong dropped sharply relative to prices of other goods and services by close to 50% between
More informationRecent Developments in Small Business Finance
April 1 Recent Developments in Small Business Finance Introduction In 1, a Small Business Panel was formed by the Reserve Bank to advise it on the availability of finance to small business. At about the
More informationCredit Conditions Review 2016 Q2
Credit Conditions Review 216 Q2 BANK OF ENGLAND Credit Conditions Review 216 Q2 This quarterly publication presents the Bank of England s assessment of the latest developments in bank funding and household
More informationProject LINK Meeting New York, 20-22 October 2010. Country Report: Australia
Project LINK Meeting New York, - October 1 Country Report: Australia Prepared by Peter Brain: National Institute of Economic and Industry Research, and Duncan Ironmonger: Department of Economics, University
More informationMarc Cowling Weixi Liu
BUSINESS GROWTH, ACCESS TO FINANCE, AND PERFORMANCE OUTCOMES IN THE RECESSION Marc Cowling Weixi Liu UNIVERSITY OF EXETER BUSINESS SCHOOL Table of Contents Acknowledgements 4 1 Introduction 5 The Study
More informationTrends in Lending. April 2011
Trends in Lending April 11 BANK OF ENGLAND Trends in Lending April 11 This quarterly publication presents the Bank of England s assessment of the latest trends in lending to the UK economy. (1) It draws
More informationSpecial Report. December 16, 2009. pace of household borrowing.
December 16, 29 HIGHLIGHTS Consumer credit is an important indicator of the level of household borrowing. Since peaking in 28, U.S. consumer credit has fallen by 3.8%, its largest decline since World War
More informationSME Cashflow Index. A report for FD Solutions. December 2013. Centre for Economics and Business Research ltd
SME Cashflow Index A report for FD Solutions Centre for Economics and Business Research ltd Contents SME Cashflow Index Introduction & key findings 3 The SME Cashflow Indices 4 Cashflow Index 5 Profit
More informationTrends in Lending. April 2014
Trends in Lending April 14 BANK OF ENGLAND Trends in Lending April 14 This quarterly publication presents the Bank of England s assessment of the latest trends in lending to the UK economy. (1) It draws
More informationThe value of apprenticeships: Beyond wages
The value of apprenticeships: Beyond wages NIDA BROUGHTON June 2016 There is strong political commitment to the apprenticeships programme as a part of the strategy to achieve a high quality workforce that
More informationEmployment and intangible spending in the UK's creative industries
Employment and intangible spending in the UK's creative industries A view from the micro data Eric Scheffel and Andrew Thomas Office for National Statistics Summary The UK's creative industries and creative
More informationQuarterly Credit Conditions Survey Report
Quarterly Credit Conditions Report Contents List of Figures & Tables... 2 Background... 3 Overview... 4 Personal Lending... 7 Micro Business Lending... 10 Small Business Lending... 12 Medium-Sized Business
More informationBUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS
STATISTICAL RELEASE BUSINESS POPULATION ESTIMATES FOR THE UK AND REGIONS 2013 Summary There were an estimated 4.9 million private sector businesses in the UK at the start of 2013, an increase of 102,000
More informationSmall Business Performance and Credit Conditions in the Current Recession
Small Business Performance and Credit Conditions in the Current Recession Small Business Job Losses Are Larger Than in the 2001 Recession Very small businesses (fewer than 20 employees) lost fewer jobs
More informationThe Business Credit Index
The Business Credit Index April 8 Published by the Credit Management Research Centre, Leeds University Business School April 8 1 April 8 THE BUSINESS CREDIT INDEX During the last ten years the Credit Management
More informationThe Aftermath of the Housing Bubble
The Aftermath of the Housing Bubble James Bullard President and CEO, FRB-St. Louis Housing in America: Innovative Solutions to Address the Needs of Tomorrow 5 June 2012 The Bipartisan Policy Center St.
More informationINFLATION REPORT PRESS CONFERENCE. Thursday 4 th February 2016. Opening remarks by the Governor
INFLATION REPORT PRESS CONFERENCE Thursday 4 th February 2016 Opening remarks by the Governor Good afternoon. At its meeting yesterday, the Monetary Policy Committee (MPC) voted 9-0 to maintain Bank Rate
More informationQuarterly Credit Conditions Survey Report
Quarterly Credit Conditions Survey Report Contents List of Charts 2 List of Tables 3 Background 4 Overview 5 Credit Market Conditions 8 Personal Lending 10 Micro Business Lending 13 Small Business Lending
More informationIW Monetary Outlook December 2015
IW policy paper 37/2015 Contributions to the political debate by the Cologne Institute for Economic Research IW Monetary Outlook December 2015 Weak Credit Growth Hinders Eurozone Inflation to Increase
More informationTackling Financial Exclusion: Data Disclosure and Area-Based Lending Data
Tackling Financial Exclusion: Data Disclosure and Area-Based Lending Data Executive Summary November 2014 Henry, N., Sissons, P., Coombes, M., Ferreira, J. and Pollard, J. Acknowledgements We would like
More informationBusiness in Ireland. Published by the Stationery Office, Dublin, Ireland. Available from:
An Phríomh-Oifig Staidrimh Central Statistics Office Business in Ireland 2012 Published by the Stationery Office, Dublin, Ireland. Available from: Central Statistics Office, Information Section, Skehard
More informationExplanation beyond exchange rates: trends in UK trade since 2007
Explanation beyond exchange rates: trends in UK trade since 2007 Author Name(s): Michael Hardie, Andrew Jowett, Tim Marshall & Philip Wales, Office for National Statistics Abstract The UK s trade performance
More informationGDP growth to remain weak as the UK economy rebalances
www.davy.ie Bloomberg: DAVY Research: +353 1 6148997 Institutional Equity Sales: +353 1 6792816 Davy Research October 18, 211 Conall Mac Coille, Chief economist conall.maccoille@davy.ie / +353 1 6148997
More informationUnsecured Loans to Business in the UK - Key Trends and Opportunities up to 2018
Brochure More information from http://www.researchandmarkets.com/reports/2933671/ Unsecured Loans to Business in the UK - Key Trends and Opportunities up to 2018 Description: - This report provides market
More informationIs the U.S. Economy Losing Its Dynamism? Dennis Lockhart President and Chief Executive Officer Federal Reserve Bank of Atlanta
Is the U.S. Economy Losing Its Dynamism? Dennis Lockhart President and Chief Executive Officer Federal Reserve Bank of Atlanta Creative Leadership Summit Louise Blouin Foundation Metropolitan Club New
More informationQuarterly Credit Conditions Survey Report Contents
Quarterly Credit Conditions Report Contents List of Figures & Tables... 2 Background... 3 Overview... 4 Personal Lending... 7 Micro Business Lending... 9 Small Business Lending... 12 Medium-Sized Business
More informationQuarterly Credit Conditions Survey Report
Quarterly Credit Conditions Survey Report Contents March 2014 Quarter Prepared by the Monetary Analysis & Programming Department Research & Economic Programming Division List of Tables and Charts 2 Background
More informationWest Bank and Gaza: Labor Market Trends, Growth and Unemployment 1
West Bank and Gaza: Labor Market Trends, Growth and Unemployment 1 Labor market developments in the West Bank and Gaza (WBG) since the 1994 Oslo accords have reflected relatively sluggish growth performance.
More informationU.S. Small Business Administration Presentation to SEC Forum. November 2009
U.S. Small Business Administration Presentation to SEC Forum November 2009 1 Small Business Plays a Significant Role in the Economy Themes Small businesses represent one of the largest segments of the
More informationMomentum in the housing market: affordability, indebtedness and risks
1 Momentum in the housing market: affordability, indebtedness and risks Speech given by Sir Jon Cunliffe, Deputy Governor Financial Stability, Member of the Monetary Policy Committee, Member of the Financial
More informationCurrent account deficit -10. Private sector Other public* Official reserve assets
Australian Capital Flows and the financial Crisis Introduction For many years, Australia s high level of investment relative to savings has been supported by net foreign capital inflow. This net capital
More informationTrends in Lending. October 2014
Trends in Lending October 14 BANK OF ENGLAND Trends in Lending October 14 This quarterly publication presents the Bank of England s assessment of the latest trends in lending to the UK economy. (1) It
More informationRecession-induced mean and distributional effects on business profitability: addressing information gaps using corporate firm-level balance sheet data
Recession-induced mean and distributional effects on business profitability: addressing information gaps using corporate firm-level balance sheet data Dominik Elgg and Timm Körting 1 1. Background 1.1
More informationWhen Credit Dries Up: Job Losses in the Great Recession
When Credit Dries Up: Job Losses in the Great Recession Samuel Bentolila CEMF Gabriel Jiménez Banco de España Marcel Jansen U. Autónoma de Madrid Sonia Ruano Banco de España Presentation at MéRA-AMSE Conference
More informationReading the balance of payments accounts
Reading the balance of payments accounts The balance of payments refers to both: All the various payments between a country and the rest of the world The particular system of accounting we use to keep
More informationChapter 1. Introduction
Chapter 1 Introduction What is productivity, how is it measured and why is it important? These questions are a useful starting point from which we can define and explain the range of productivity measures
More informationDo SBA Loans Create Jobs?
Do SBA Loans Create Jobs? Estimates from Universal Firm-Level Panel Data and Longitudinal Matching Methods J. David Brown Center for Economic Studies US Census Bureau John S. Earle George Mason University
More informationChapter 5: Financial Wealth, Wealth in Great Britain 2010-12
Chapter 5: Financial Wealth, Wealth in Great Britain 201012 Coverage: GB Date: 15 May 2014 Geographical Area: Region Theme: Economy Key points Aggregate net financial wealth for all private households
More informationASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO JUNE 2014
ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO JUNE 214 CONTENTS Page 1. List of contributors 1 2.1. Clients sales 2 2.2. Balances at the period end 3 2.3. Analysis of sole lender and syndicate
More informationConditional guidance as a response to supply uncertainty
1 Conditional guidance as a response to supply uncertainty Appendix to the speech given by Ben Broadbent, External Member of the Monetary Policy Committee, Bank of England At the London Business School,
More informationThe income of the self-employed FEBRUARY 2016
FEBRUARY 2016 Contents The income of the self-employed... 3 Summary... 3 Background recent trends in self-employment... 3 Earnings from self-employment... 7 Income from all sources... 10 Following the
More informationTrends in Lending. January 2010
Trends in Lending January 1 BANK OF ENGLAND Trends in Lending January 1 This publication presents the Bank of England s assessment of the latest trends in lending to the UK economy. It draws mainly on
More informationEconomic Review, April 2012
Economic Review, April 2012 Author Name(s): Malindi Myers, Office for National Statistics Abstract This note provides some wider economic analysis to support the Statistical Bulletin relating to the latest
More informationEconometric Analysis from the UK Survey of SME Finances
THE IMPACT OF THE FINANCIAL CRISIS ON BANK LENDING TO SMES Econometric Analysis from the UK Survey of SME Finances JULY 2012 Report Prepared for BIS/ Breedon Review by: Dr Stuart Fraser Warwick Business
More informationThe Changing Shape of UK Manufacturing
The Changing Shape of UK Manufacturing Author Name(s): Michael Hardie and Andrew Banks Abstract The contribution of the manufacturing industry to the UK economy has changed markedly over the last 60 years.
More informationHousehold debt and consumption in the UK. Evidence from UK microdata. 10 March 2015
Household debt and consumption in the UK Evidence from UK microdata 10 March 2015 Disclaimer This presentation does not necessarily represent the views of the Bank of England or members of the Monetary
More informationSubmission to the Inquiry into Access of Small Business to Finance. march 2010
Submission to the Inquiry into Access of Small Business to Finance march 2010 Submission to the Inquiry into Access of Small Business to Finance Introduction The submission is in two sections reflecting
More informationFRBSF ECONOMIC LETTER
FRBSF ECONOMIC LETTER 01-1 April, 01 Commercial Real Estate and Low Interest Rates BY JOHN KRAINER Commercial real estate construction faltered during the 00 recession and has improved only slowly during
More informationThe recent economic downturn saw an unprecedented deterioration in labor
current FEDERAL RESERVE BANK OF NEW YORK issues IN ECONOMICS AND FINANCE Volume 17, Number 4 www.newyorkfed.org/research/current_issues Why Small Businesses Were Hit Harder by the Recent Recession Ayşegül
More informationTHE RETURN OF CAPITAL EXPENDITURE OR CAPEX CYCLE IN MALAYSIA
PUBLIC BANK BERHAD ECONOMICS DIVISION MENARA PUBLIC BANK 146 JALAN AMPANG 50450 KUALA LUMPUR TEL : 03 2176 6000/666 FAX : 03 2163 9929 Public Bank Economic Review is published bi monthly by Economics Division,
More informationShare Capital Increase
Share Capital Increase Additional Information Pack Part 2 July 2014 Table of contents Margins and profitability - Interest earning assets decomposition 3 Asset quality - Recovery analysis 4 Capital - Q2
More informationInventory Investment in Australia and the Global Financial Crisis
Research Discussion Paper Inventory Investment in Australia and the Global Financial Crisis Gianni La Cava RDP 2013-13 The Discussion Paper series is intended to make the results of the current economic
More informationAggregate Risk and the Choice Between Cash and Lines of Credit
Aggregate Risk and the Choice Between Cash and Lines of Credit Viral Acharya NYU Stern School of Business, CEPR, NBER Heitor Almeida University of Illinois at Urbana Champaign, NBER Murillo Campello Cornell
More informationMortgage Arrears in Ireland: Introducing the Enhanced Quarterly Statistics
8 Mortgage Arrears in Ireland: Introducing the Jean Goggin * Abstract This article introduces the recently expanded Residential Mortgage Arrears and Repossessions Statistics published by the Central Bank
More informationAnalysis of the SME Market Using Micro-Data 1
Seventh IFC Conference on Indicators to support Monetary and Financial Stability Analysis: Data Sources and Statistical Methodologies BIS, Basel, 4 and 5 September 2014. Analysis of the SME Market Using
More informationThe Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses
The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses Dean Amel* Board of Governors of the Federal Reserve System Traci Mach* Board of Governors of the Federal Reserve
More informationNorth American Steel Industry: Recent Market Developments and Key Challenges Going Forward
North American Steel Industry: Recent Market Developments and Key Challenges Going Forward OECD Steel Committee May 6-7, 21 Paris, France * American Iron and Steel Institute (AISI) Steel Manufacturers
More informationASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO MARCH 2015
ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO MARCH 21 Asset Based Finance Association MARCH 21 CONTENTS Page 1. List of contributors 1 2.1. Clients sales 2 2.2. Balances at the period end 3
More informationA Strong Housing Recovery Fuels Growth
Chapman University A. Gary Anderson Center for Economic Research FOR RELEASE: ONLINE: June 12, 2013; 10:00 a.m. PRINT: June 13, 2013 CONTACT: James Doti, President and Donald Bren Distinguished Chair of
More information2015 Farm Bank Performance Report Key Findings
2015 Farm Bank Performance Report Key Findings The banking industry is the nation s most important supplier of credit to agriculture providing nearly 50 percent of all farm loans in the U.S. $170 billion
More informationDiminished Expectations, Double Dips, and External Shocks: The Decade After the Fall
MPRA Munich Personal RePEc Archive Diminished Expectations, Double Dips, and External Shocks: The Decade After the Fall Carmen Reinhart and Vincent Reinhart University of Maryland, College Park, Department
More informationUK Economic Forecast Q3 2014
UK Economic Forecast Q3 2014 David Kern, Chief Economist at the BCC The main purpose of the BCC Economic Forecast is to articulate a BCC view on economic topics that are relevant to our members, and to
More informationCredit Conditions Review 2015 Q2
Credit Conditions Review 15 Q2 BANK OF ENGLAND Credit Conditions Review 15 Q2 This quarterly publication presents the Bank of England s assessment of the latest developments in bank funding conditions
More information3 Red ink rising: how worrying is the UK economy s total debt burden?
3 Red ink rising: how worrying is the UK economy s total debt burden? There has been much concern in recent years about the UK s rising public debt burden and many commentators have been concerned for
More informationGauging Current Conditions: The Economic Outlook and Its Impact on Workers Compensation
August 2014 Gauging Current Conditions: The Economic Outlook and Its Impact on Workers Compensation The exhibits below are updated to reflect the current economic outlook for factors that typically impact
More informationThe Effects of Funding Costs and Risk on Banks Lending Rates
The Effects of Funding Costs and Risk on Banks Lending Rates Daniel Fabbro and Mark Hack* After falling for over a decade, the major banks net interest margins appear to have stabilised in a relatively
More informationThe National Business Survey National Report November 2009 Results
The National Business Survey National Report November 2009 Results 1 Executive Summary (1) 2 NBS results from November 2009 demonstrate the continued challenging conditions faced by businesses in England
More informationAndrew Tyrie Chairman Treasury Select Committee London SW1A 0AA 16 May 2013
Charles Bean Deputy Governor, Monetary Policy Andrew Tyrie Chairman Treasury Select Committee London SW1A 0AA 16 May 201 Dear Andrew At the Treasury Committee's hearing with members of the Monetary Policy
More informationHow To Understand The Current State Of The Economy In The Uk
Trends in Lending July 13 BANK OF ENGLAND Trends in Lending July 13 This quarterly publication presents the Bank of England s assessment of the latest trends in lending to the UK economy. (1) It draws
More informationHousehold debt and spending in the United Kingdom
Household debt and spending in the United Kingdom Phil Bunn and May Rostom Bank of England Norges Bank Workshop: 24 March 2015 1 Outline Motivation Literature/theory Data/methodology Econometric results
More informationThe global financial crisis which began in the
What is responsible for the easing of credit standards before the crisis: monetary policy or the savings glut? Adrian Penalver Monetary and Financial Analysis Directorate This letter presents the findings
More informationThe labour market, I: real wages, productivity and unemployment 7.1 INTRODUCTION
7 The labour market, I: real wages, productivity and unemployment 7.1 INTRODUCTION Since the 1970s one of the major issues in macroeconomics has been the extent to which low output and high unemployment
More informationPrivate Sector Employment Indicator, Quarter 1 2015 (February 2015 to April 2015)
STATISTICAL RELEASE Date: 14 July 2015 Status: Experimental Official Statistics Coverage: England; Regions Private Sector Employment Indicator, Quarter 1 2015 (February 2015 to April 2015) 1. Introduction
More informationCFCM CENTRE FOR FINANCE AND CREDIT MARKETS
CFCM CENTRE FOR FINANCE AND CREDIT MARKETS Current Issues Briefing Why Firms Will Feel The Effects Of The Credit Crunch Prof. Paul Mizen Director, CFCM. Produced By: Centre for Finance and Credit Markets
More informationEnterprise Finance Guarantee. Application Process and List of Lenders NOVEMBER 2014
Enterprise Finance Guarantee Application Process and List of Lenders NOVEMBER 2014 How does a Business apply for an EFG-backed facility? First and foremost a business applies to a lender for a loan or
More informationLIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS
APRIL 2014 LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS Most economists talk about where the economy is headed it s what they do. Paying attention to economic indicators can give you an idea of
More informationFinance for Small and Medium-Sized Enterprises
Finance for Small and Medium-Sized Enterprises A Report on the 2004 UK Survey of SME Finances Dr Stuart Fraser Centre for Small and Medium-Sized Enterprises Warwick Business School University of Warwick
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Suvey of Macroeconomics, MBA 641 Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Modern macroeconomics emerged from
More informationSupporting UK business The report of the Business Finance Taskforce
Supporting UK business The report of the Business Finance Taskforce Supporting UK business Contents 1 Contents Foreword 2 1 Executive summary 5 2 Current state of business lending markets 13 3 Restoring
More informationFlight to Where? Evidence from Bank Investments During the Financial Crisis
Flight to Where? Evidence from Bank Investments During the Financial Crisis Thomas Hildebrand, Jorg Rocholl and Alexander Schulz Discussion by Neeltje van Horen De Nederlandsche Bank GLOBAL RESEARCH FORUM
More information[03.03] Guidelines for the User Cost Method to calculate rents for owner occupied housing. International Comparison Program
International Comparison Program [03.03] Guidelines for the User Cost Method to calculate rents for owner occupied housing Global Office 3 rd Technical Advisory Group Meeting June 10-11, 2010 Paris, France
More informationRené Garcia Professor of finance
Liquidity Risk: What is it? How to Measure it? René Garcia Professor of finance EDHEC Business School, CIRANO Cirano, Montreal, January 7, 2009 The financial and economic environment We are living through
More informationImproving access to finance for small and medium-sized enterprises
Report by the Comptroller and Auditor General Department for Business, Innovation & Skills and HM Treasury Improving access to finance for small and medium-sized enterprises HC 734 SesSIon 2013-14 1 November
More informationMAIN FINDINGS OF THIS REPORT:
EXECUTIVE SUMMARY MAIN FINDINGS OF THIS REPORT: As EU manufacturing emerges from the recession, its competitive strengths remain intact: highly skilled workers, high domestic content of export goods, and
More informationTHE EURO AREA BANK LENDING SURVEY 3RD QUARTER OF 2014
THE EURO AREA BANK LENDING SURVEY 3RD QUARTER OF 214 OCTOBER 214 European Central Bank, 214 Address Kaiserstrasse 29, 6311 Frankfurt am Main, Germany Postal address Postfach 16 3 19, 666 Frankfurt am Main,
More informationAccess to Financing Survey (AFS)
Access to Financing Survey (AFS) Methodology Index Access to Financing Survey: Methodology 1 Objectives and need for the operation...3 2 Research scopes...4 3 Statistical units...5 4 Classification variables...6
More informationFRBSF ECONOMIC LETTER
FRBSF ECONOMIC LETTER 211-32 October 17, 211 Recent Trends in Small Business Lending BY LIZ LADERMAN AND JAMES GILLAN Although bank small business loan portfolios continue to shrink, there are hints of
More informationSmall Business Funding and the Economic Recovery
EMBARGOED UNTIL Friday, January 6, 212 at 1:3 A.M. Eastern Time OR UPON DELIVERY Small Business Funding and the Economic Recovery Eric S. Rosengren President & Chief Executive Officer Federal Reserve Bank
More informationASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO DECEMBER 2015
ASSET BASED FINANCE ASSOCIATION QUARTERLY STATISTICS TO DECEMBER 21 CONTENTS Page 1. List of contributors 1 2.1. Clients sales 2 2.2. Balances at the period end 3 2.3. Analysis of sole lender and syndicate
More informationGeneral Certificate of Education Advanced Level Examination January 2010
General Certificate of Education Advanced Level Examination January 2010 Economics ECON4 Unit 4 The National and International Economy Tuesday 2 February 2010 1.30 pm to 3.30 pm For this paper you must
More informationTrends in Lending. January 2014
Trends in Lending January 14 BANK OF ENGLAND Trends in Lending January 14 This quarterly publication presents the Bank of England s assessment of the latest trends in lending to the UK economy. (1) It
More informationERC Insights. June 2014 FINANCING GROWTH
ERC Insights June 2014 FINANCING GROWTH Recent ERC research provides new insights into bank borrowing among UK SMEs and emphasises the potential value of effective company boards in helping firms to access
More informationCorporate Sector in Hong Kong - An Analysis
An Analysis of the Financial Health of Hong Kong Corporations* by Ip-wing Yu, Fanny Ho, Eve Law and Laurence Fung of the Research Department The Asian financial crisis and the ensuing economic downturn
More informationEffects on pensioners from leaving the EU
Effects on pensioners from leaving the EU Summary 1.1 HM Treasury s short-term document presented two scenarios for the immediate impact of leaving the EU on the UK economy: the shock scenario and severe
More information