Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.
The effects of a large energy price shock on firm credit
This study investigates how credit to firms responded to the energy price shock triggered by the Russian invasion of Ukraine. Credit growth of energy-intensive firms declined by 8.75 percentage points relative to comparable non-energy-intensive firms. Less risky firms reduced credit demand, whereas banks reduced supply of new loans to riskier firms.