The Real Effects of the Bank Lending Channel

Atif Mian, Gabriel Jiménez, Jesús Saurina and José-Luis Peydró
Authors registered in the RePEc Author Service: Jose-Luis Peydro and Gabriel Jimenez

No 1099, Working Papers from Barcelona School of Economics

Abstract: We study bank credit booms, exploiting the Spanish matched credit register over 2001-2009. We extend Khwaja and Mian (2008)'s 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.

Keywords: securitization; bank lending channel; real effects of credit; credit supply booms; real estate (search for similar items in EconPapers)
JEL-codes: E32 E44 G01 G21 G28 (search for similar items in EconPapers)
Date: 2019-05
New Economics Papers: this item is included in nep-ban, nep-fmk, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
https://bw.bse.eu/wp-content/uploads/2019/05/1099-file.pdf (application/pdf)

Related works:
Journal Article: The real effects of the bank lending channel (2020)
Journal Article: The Real Effects of the Bank Lending Channel (2020)
Working Paper: The real effects of the bank lending channel (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:1099

Access Statistics for this paper

More papers in Working Papers from Barcelona School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Bruno Guallar ().