Media contributions
1Media contributions
Title How banks affect investment and growth: New evidence Degree of recognition International Media name/outlet VoxEU Media type Web Date 2/07/20 Description Banks fulfil several key functions in the economy, from improving the allocation of capital by extending credit to facilitating consumption smoothing through saving and borrowing. The creation of liquidity lies at the centre of much of a bank’s operations. This column provides evidence that banks' liquidity creation is associated with higher economic growth across countries and industries, with important non-linear effects. Results suggest that in the new ‘knowledge economy’ banks will have a more limited role, compared to other types of financial intermediaries and markets. Producer/Author CEPR URL https://cepr.org/voxeu/columns/how-banks-affect-investment-and-growth-new-evidence Persons Robin Dottling, Thomas Lambert, Mathijs van Dijk