BLS model for supply of business lending

The Bank Lending Standards (BLS) model is a bank-level panel data model used to analyze the influence of changes in the level of bank lending standards on the supply of business lending in The Netherlands.

The model uses confidential bank-specific information on quarterly changes in business lending, bank lending standards (from the Eurosystem Bank Lending Survey), and interest rates to estimate the elasticity between business lending and the level of bank lending standards (i.e. collateral requirements, non-interest rate charges, covenants etc.).