Do European Union funds have an impact on the volume of corporate lending? : the case of the Czech Republic, Slovakia and Poland

Purpose: The research problem of this article is to determine the existence of a direct relationship between the EU funds spent and the volume of bank lending in the corporate sector in the Czech Republic, Slovakia and Poland.

Design/Methodology/Approach: The statistical analysis aimed to achieve the objective of this study consisted in revealing some interesting associations between the variables: EU funding to individual countries and lending to non-financial companies in the category of short and long-term loans. A linear regression analysis procedure was carried out, and an additional tool to support the course of the study was a relationship analysis measured by the Pearson’s product moment correlation coefficient of the individual variables.

Findings: The research hypothesis adopted was that EU funds significantly modify the market for credit services offered by banks and, therefore, EU funds have an impact on the volume of bank lending in the corporate sector. The absorption of EU funds, based on the observation of their disbursements in the countries concerned which are members of the Community, demonstrates basically a similar regularity. This is consistent with the process of the implementation of programmes under particular EU perspectives. However, EU funding for the Czech Republic and Slovakia has a similar structure, and it can be seen that an increase in funding is in line with a decrease in lending (short-term loans) while this phenomenon does not occur in Poland.

Practical Implications: The research results can be used by EU funds disposers as well as by banks authorities to create their future policy.

Originality/Value: Original research.