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SeedPublished 2026-10-23

Fiscal expansion and bank credit in the euro area

Government spending, borrowing costs and the euro area are all rising keywords in the finance journals. When governments borrow more, domestic banks often buy the bonds. Does that crowd out bank lending to firms, and which firms lose the most?

financeeconomicsbankingmacroeconomics

What prompted this#

In the finance journals, "government spending" had 9 papers in July–September 2026 against about 1 expected, "borrowing costs" 9 against 3, "euro area" 9 against 3 and "credit supply" 7 against 2 (see the finance dashboard). Since October 2025, 327 papers carry a government-spending, fiscal-policy, public-debt or sovereign-debt keyword (213 in economics journals, 105 in finance). Only 13 of them carry a credit-supply, bank-lending, crowding-out or sovereign-bank keyword.

Questions#

  • When a government issues more debt, do the domestic banks that buy it lend less to firms than banks that do not?
  • Are small firms, which depend on banks, hit harder than large firms that can issue bonds?
  • Does central-bank bond buying, or its end, change the effect?

Data that could help#

Bank-level sovereign holdings (EBA transparency exercises), the euro area credit register AnaCredit where access allows, firm balance sheets (Orbis) and national debt issuance.

Next step#

Relate changes in banks' holdings of their own government's bonds to their lending to firms around large national issuance waves.

The keywords this note follows, in the tracked finance, accounting, economics, management, operations research and AI journals as of 2026-10-26
KeywordPapers, last 30 daysRankPapers per month, Oct 23 – Oct 26*Papers, last 36 months
government spending7#242173
euro area5#393226
credit supply2#130367

Markdown version of this note: /ideas/fiscal-expansion-and-bank-credit-in-the-euro-area.md

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Cite this page

Scholar4AI. (2026). Fiscal expansion and bank credit in the euro area. Journal Research Rankings. Retrieved October 23, 2026, from https://scholar4ai.com/ideas/fiscal-expansion-and-bank-credit-in-the-euro-area

@misc{scholar4ai-ideas-fiscal-expansion-and-bank-credit-in-the-euro-area,
  author = {{Scholar4AI}},
  title = {Fiscal expansion and bank credit in the euro area},
  year = {2026},
  howpublished = {\url{https://scholar4ai.com/ideas/fiscal-expansion-and-bank-credit-in-the-euro-area}},
  urldate = {2026-10-23},
  note = {Journal Research Rankings; data from OpenAlex (CC0); licensed CC BY-NC 4.0}
}

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