Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272294 
Year of Publication: 
2023
Series/Report no.: 
EIB Working Papers No. 2023/03
Publisher: 
European Investment Bank (EIB), Luxembourg
Abstract: 
Does an increase in lending by multinational development banks affect the private lending activity in developing countries? We show that this is indeed the case using data on loans and investments by the European Investment Bank (EIB) in combination with data on syndicated loans. We find that a pronounced increase in EIB operations is followed by a surge in the number and volumes of syndicate loans in countries outside the European Union. Our results suggest that multinational banks can incentivize private sector lending by playing an important role in signaling to private markets that borrowers in emerging and developing countries are safe.
Subjects: 
European Investment Bank
Financial assistance
Financial conditions
Public and private lending
Syndicated loans
JEL: 
F21
F34
H81
Persistent Identifier of the first edition: 
ISBN: 
978-92-861-5586-4
Document Type: 
Working Paper

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