THE IMPACT OF THE CRISIS ON THE LENDING DECISIONS: EVIDENCE FROM THE BANKS IN MACEDONIA

Abstract

This research aims to perform analysis of the development in the banks` credit policies before and after the 2008 crisis. In particular, it assesses the credit policies of the Macedonian banks and whether and how the policies were amended following the global recession. The research is based on a qualitative approach using interviews with senior and middle managers in eight out of total of fourteen banks in Macedonia to analyze the changes in their credit policies due to the 2008 financial crisis. The results indicate that the credit policies of the Macedonian banks are conservative in both observed periods. Yet, the financial crisis was affecting banking credits by tightening their credit policies and procedurs. The results of this research might be of interest for ongoing improvement of the banks` credit and risk management, as well as for the policy makers to prevent future financial crises.

Keywords

• credit policy
• lending
• banks