Do Demand or Supply Factors Drive Bank Credit, in Good and Crisis Times?

Gabriel Jiménez, Steven Ongena, Jesús Saurina () and José-Luis Peydró
Authors registered in the RePEc Author Service: Gabriel Jimenez and Jose-Luis Peydro

No 966, Working Papers from Barcelona School of Economics

Abstract: We analyze the impact of balance-sheet strength on credit availability. Bank balance sheets are weak in crisis times, but so are those of firms, and credit demand is then also weak. For identification, we exploit an administrative dataset of loan applications matched with bank and firm variables covering Spain from 2002 to 2010. Bank balance-sheet strength determines the granting of loan applications only in crisis times, while firm balance-sheet strength – notably leverage – determines strongly this granting in both good and crisis times. Our findings underscore the importance of the strength of corporate balance sheets over credit supply for credit availability.

Keywords: business cycle; credit crunch; bank lending channel; credit supply; leverage; firm balance-sheet channel; credit demand (search for similar items in EconPapers)
JEL-codes: E44 G01 G21 G28 G32 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-ban and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://bw.bse.eu/wp-content/uploads/2017/05/966-file.pdf (application/pdf)

Related works:
Working Paper: Do demand or supply factors drive bank credit,in good and crisis times? (2017)
Working Paper: Do Demand or Supply Factors Drive Bank Credit, in Good and Crisis Times? (2017)
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:966

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 ().