Credit demand vs. supply channels: Experimental- and administrative-based evidence

Peydró, José-Luis, Enrico Sette and Valentina Michelangeli
Authors registered in the RePEc Author Service: Jose-Luis Peydro

No 15276, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We identify the relative importance for lending of borrower (demand) versus bank (supply) factors. We submit thousands of fictitious mortgage applications, changing one borrower-level factor at time, to the major Italian online mortgage platform. Each application goes to all banks. We find that borrower and bank factors are equally strong in causing and explaining loan acceptance. For pricing, borrower factors are instead stronger. Moreover, banks supplying less credit accept riskier borrowers. Exploiting the administrative credit register, we show borrower-lender assortative matching, and that the bank-level strength measure, estimated on the experimental data, determines credit supply and risk-taking to real firms.

Keywords: Credit; Banks; Mortgages; Smes; Risk-taking (search for similar items in EconPapers)
JEL-codes: E51 G21 G51 (search for similar items in EconPapers)
Date: 2020-09
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP15276 (application/pdf)

Related works:
Working Paper: Credit demand vs. supply channels: Experimental- and administrative-based evidence (2020)
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:cpr:ceprdp:15276

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP15276

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().