Since 2001, OECD corporate net lending has risen sharply. This paper examines the main forces at
play behind this run-up and provides some insight into whether and how they might possibly unwind in the
future, a process that may already be underway. It shows in particular that, the increase is partly temporary
with some of it likely to fade with the cycle and the ongoing adjustments in the financial and housing
sectors. On the other hand, part of the increase reflects structural changes in corporate behaviour and in
their environment and is likely to persist. The paper also points to cross-country differences reflecting, for
example, the role of competiveness in Japan and continental Europe, and of the financial sector in the
United Kingdom.
Corporate Net Lending
A Review of Recent Trends
