ECB Study Finds Energy Price Shock Curtailed Bank Lending

Energy price shock curbed bank lending, ECB study finds

The surge in energy prices following Russia’s invasion of Ukraine significantly reduced bank lending to energy-intensive companies, according to an ECB working paper, with the study concluding that firms most exposed to higher energy costs borrowed less while banks also imposed stricter lending conditions. The paper, authored by Niels Framroze Moller and Johannes Poeschl, examines […]