Lack of global funds due to 2009 global financial crisis necessitates foreign loans for emerging countries. Emerging countries with insufficient domestic savings often apply to external debts to achieve the desired economic growth rate. Especially with the end of the WW2, the World Bank began to...

Empirical estimations of the drivers for loan extension mainly apply the outstanding stock of bank credit as the dependent variable. This paper picks up the critique of Behrendt (2016), namely that such estimations may lead to misleading results, as the change of the stock is not only driven by...