Empirical analysis of corporate credit lines

Gabriel Jimenez, Jose Lopez and Jesús Saurina ()

No 821, Working Papers from Banco de España

Abstract: Since bank credit lines are a major source of corporate funding, we examine the determinants of credit line usage with a comprehensive database of Spanish corporate credit lines. A line’s default status is a key factor driving its usage, which increases as a firm’s financial condition worsens. Line usage decreases by roughly 10% for each year of its life. Lender characteristics, such as the number and length of a firm’s banking relationships, are found to affect a firm’s usage decisions, and credit line usage is found to be inversely related to macroeconomic conditions.

Keywords: credit lines; firm default; bank lending; exposure at default (search for similar items in EconPapers)
JEL-codes: E32 G18 M21 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2008-10
New Economics Papers: this item is included in nep-ban, nep-bec, nep-mac and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... o/08/Fic/dt0821e.pdf First version, October 2008 (application/pdf)

Related works:
Journal Article: Empirical Analysis of Corporate Credit Lines (2009)
Working Paper: Empirical analysis of corporate credit lines (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:0821

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