Bank lending and macroeconomic variables: empirical evidence from panel data

Abstract

The aim of this research paper is to determine the impact of macroeconomic variables towards bank lending in the G7 countries over the period 2005 to 2015. This study tests the relationship between interest rate, employment, inflation and bank lending. In this study applied the panel ordinary least square (POLS) to examine the impact macroeconomic variables on bank lending. The findings show that interest rate, employment and inflation have significant impact towards bank lending