Bank Lending Effect on German Commercial Property Prices

This paper analyzes the effects of bank lending on German commercial property prices. The theory on therole of …financial intermediaries in business cycle activity states that lending activity is characterized byasymmetric information between borrowers and lenders. Unlike other previousempirical results in commercial real estate literature, our main results show a weak negative correlationbetween growth in property prices and growth in credit, especially at the regional level...