The Financial Accelerator in Europe after the Financial Crisis

Anotace: The paper investigates the mechanism of a financial accelerator. In particular, it examines the procyclicality of credit margins in Europe after the financial crisis, with an additional split to small, medium and large-sized banks. The empirical analysis is in contrast with contemporary authors because approve that financial accelerator is not present on the European market after financial crisis. It could be caused by multiple factors, for example structural changes during financial crisis, change in the behaviour of commercial banks or extremely low interest rates. We tested our hypothesis on dataset consists of a data panel with annual data for the period 1998-2015 and includes 2 489 banks from 36 European countries from the Bankscope database. We also provide empirical robust proof that such behaviour is not occurring during the financial crisis and after the financial crisis in the European banking system.