property prices and bank lending. We develop a reduced-form theoretical model which suggests bank lending is closely related to … largely driven by the dynamic linkage between the commercial property sector, bank credit and the macroeconomy. Cross … expansion, rather than excessive bank lending boosting property prices. In addition, GDP has an important influence on both …

banks in a range of industrialised economies, extending the existing micro literature on bank performance. Our results … suggest that commercial property prices tend to be positively associated with bank lending and profitability, and negatively … variables determining bank performance are included as controls. Further extensions show that the magnitude of this impact is …