By using new data from the 'Regional Bank Lending Survey' (RBLS), the work studies the contribution of supply to the dynamics of loans in the years 2009-2014. After assessing the information content of the new dataset, the work provides new and detailed empirical evidence in relation to possible sources of supply heterogeneity.
Approximately 40 per cent of the decline in the stock of business loans after the financial crisis can be attributed to supply factors. Banks that had less liquidity, a riskier business model and were more connected to other financial players (because they belonged to a group) were also a potentially less stable source of funding for firms. Bank capital and the funding mix seemed to play no significant role.
