engleski

Links between zombie lending, productivity and employment

Banks sometimes respond to a sharp deterioration in the quality of placements by extending time limits for loan repayments to borrowers in default and hide the actual quality of placements hoping that difficulties of borrowers are only temporary. This practice is termed evergreening or zombie lending. The aim of this research is to analyse the credit supply to individual enterprises in Croatia during the recent crisis and determine to what extent zombie lending is present. As economists are naturally interested in the real effects of such behaviour, the next step is to analyse the impact of such lending on firm's productivity and employment.

zombie lending; credit supply; micro level data; employment; productivity

nije evidentirano