Specialization in bank lending: evidence from exporting firms

Daniel Paravisini, Veronica Rappoport and Philipp Schnabl

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We develop an empirical approach for identifying specialization in bank lending using granular data on borrower activities. We illustrate the approach by characterizing bank specialization by export market, combining bank, loan, and export data for all firms in Peru. We find that all banks specialize in at least one export market, that specialization affects a firm's choice of new lenders and how to finance exports, and that credit supply shocks disproportionately affect a firm's exports to markets where the lender specializes in. Thus, bank market-specific specialization makes credit difficult to substitute, with consequences for competition in credit markets and the transmission of credit shocks to the economy.

Keywords: banking; export finance; specialization (search for similar items in EconPapers)
JEL-codes: F14 F34 G21 (search for similar items in EconPapers)
Date: 2017-07-24
New Economics Papers: this item is included in nep-ban and nep-bec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (66)

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https://cep.lse.ac.uk/pubs/download/dp1492.pdf (application/pdf)

Related works:
Working Paper: Specialization in Bank Lending: Evidence from Exporting Firms (2017)
Working Paper: Specialization in bank lending: evidence from exporting firms (2017)
Working Paper: Specialization in Bank Lending: Evidence from Exporting Firms (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1492

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