In the present paper we study the determinants of the margins paid by euro-area non-financial corporations (NFCs) for their bank loans on top of the rates they earn for their deposits (bank lending margins). We use panel VAR techniques, in order to test for causality relationships and produce...

In the years after the financial crisis low bank profitability has been a major issue. The increased regulation imposed in the wake of the crisis has often been accused of overburdening banks and contributing to low profitability. The euro area, consisting of 19 different economies, made a big...