Off-balance-sheet diffusion: European evidence from bank-level panel data

Off-balance-sheet activities of various types of banks in Germany, France, United Kingdom, Belgium and the Netherlands are analysed for the years 1989-1995. The panel data regression results show that - apart from an autonomous speed of diffusion - bank characteristics, regulation and macroeconomic conditions are relevant for the off-balance-sheet diffusion pattern in Europe. This conclusion remains valid when focusing exclusively on the most common bank type, i.e. commercial banks.