We examine the risks to bank soundness associated with credit booms in a large set of countries. Using bank-level data … in 90 countries between 1995 and 2005, we analyze the relationship between credit growth and bank soundness taking into …, credit growth becomes less dependent on soundness during booms. These findings shed some light on why credit booms are often …

This paper examines risks to bank soundness associated with rapid credit growth in a large set of countries. At a … conceptual level, bank soundness may weaken during episodes of fast credit growth because of capacity constraints or competitive … pressures as banks make riskier loans in order to expand their market shares. Credit growth may also be affected by bank …

We examine how the cost of corporate credit varies around fiscal consolidations aimed at reducing government debt …

distinguishes between credit to the household sector and to the corporate sector, we investigate the association between capital … inflows and credit growth. We find that non-FDI capital inflows boost credit growth and increase the likelihood of credit … booms in both household and corporate sectors. For household credit growth, the composition of capital inflows appears to be …