ABSTRACT
The last evidence emphasizes that the economic effect of the COVID-19 pandemic resulted in a change in credit standards and a reduction in loan demand. However, this phenomenon is not confirmed in all markets. The aim of the chapter is to verify the research question: how the COVID-19 pandemic affects bank lending activity in European countries. The analysis has been extended by the importance of bank-specific and macroeconomic factors. The survey is carried out on 652 commercial banks in European countries, using data from the period 2018 Q3–2021 Q1. The study contributes to the ongoing discussion of customized modifications to business models that appears to be the most promising strategy to sustainably increase lending during and after the COVID-19 pandemic.
