Title:
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The real effects of the bank lending channel
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Author:
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Jiménez, Gabriel; Mian, Atif; Peydró, José-Luis; Saurina, Jesús
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Abstract:
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Data de publicació electrònica: 15-06-2019 |
Abstract:
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This paper studies credit booms exploiting the Spanish matched credit register over 2001–2009. We extend Khwaja and Mian’s (2008) loan-level estimator by incorporating firm-level general equilibrium adjustments. Higher ex-ante bank real-estate exposure increases credit supply to non-real-estate firms, but effects are neutralized by firm-level adjustments for firms with existing banking relationships. However, higher bank real-estate exposure increases risk-taking, by relaxing standards of existing borrowers (cheaper, longer-term and less collateralized credit), and by expanding credit on the extensive margin to first-time borrowers that default substantially more. Results suggest that the mechanism at work is greater liquidity via securitization of real-estate assets. |
Abstract:
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José-Luis Peydró acknowledges financial support from project ECO2015-68182-P (MINECO/FEDER, UE) and the European Research Council Grant (project 648398). |
Subject(s):
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-Bank lending channel -Real effects of credit -Credit supply booms -Real estate -Securitization |
Rights:
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Under a Creative Commons license https://creativecommons.org/licenses/by/4.0/
https://creativecommons.org/licenses/by/4.0/
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Document type:
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Article Article - Published version |
Published by:
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Elsevier
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