Banks and the real economy: an assessment of the research

Allen Berger, Phil Molyneux, John O. S. Wilson

Research output: Contribution to journalReview articlepeer-review

45 Citations (Scopus)
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We review research on the effects of banks on the real economy, including, but not limited to articles in this Special Issue of the Journal of Corporate Finance. We focus primarily on US and European policy interventions that provide quasi-natural experiments with relatively exogenous shocks to bank output. We concentrate on single-country settings, avoiding potentially confounding differences in language, culture, law, currency, and so on, that complicate cross-country investigations. We also largely avoid the effects of financial crises, which are not exogenous to the banking system. The evidence strongly suggests positive effects of banks on the real economy.
Original languageEnglish
Article number101513
JournalJournal of Corporate Finance
Early online date6 Nov 2019
Publication statusPublished - 1 Jun 2020


  • Banks
  • Consolidation
  • Credit supply shocks
  • Deregulation
  • Firms
  • Households
  • Real economy
  • Regulatory interventions


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