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Sana Zouari, Dhafer Saidane and Foued Badr Gabsi
 
''Private sector financing: linear and quadratic effects of domestic public debt on bank credit supply''
( 2022, Vol. 42 No.2 )
 
 
This paper investigates the impact of domestic public debt on credit supply to the private sector using a panel of 19 banks operating in the Arab Maghreb region over the period 2005-2018. The results confirm the existence of both linear and quadratic effects of domestic public debt on credit supply to the private sector. The estimated threshold found to be around 9.77 % of total assets. The regression results are robust across two alternative specifications excluding public banks and taking into consideration the impact of the Arab Spring on credit supply to the private sector for different levels of domestic public debt.
 
 
Keywords: Credit supply, Domestic public debt, Threshold, Non-linear dynamic panel
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
 
Manuscript Received : Sep 05 2020 Manuscript Accepted : Jun 30 2022

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