The impact of uncertainty on corporate borrowing in the euro area

Mihai Prelipcean

Uncertainty in the global economy has been elevated following trade tariff disputes, economic policy changes, and geopolitical risks. This column examines the impact of uncertainty on non-financial corporate borrowing in the euro area, distinguishing the impact of various sources of uncertainty. It finds that increased uncertainty decreases non-financial corporate credit growth, particularly loan growth. While domestic uncertainty shocks tend to shorten loan maturities, financial market

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