Specialization in bank lending: evidence from exporting firms

Daniel Paravisini, Veronica Rappoport and Philipp Schnabl

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We develop a novel approach for measuring bank specialization using granular data on borrower activities and apply it to Peruvian exporters and their banks. We find that borrowers seek credit from banks that specialize in their export destinations,both when expanding exports and when exporting to new countries. Firms experiencing country-specific export demand shocks adjust borrowing disproportionately from specialized banks. Specialized bank credit supply shocks affect exports disproportionately to countries of specialization. Our results demonstrate that firm credit demand is bank- and activity-specific, which reduces banking competition and affects the transmission and amplification of shocks through the banking sector

JEL-codes: G20 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2023-08-01
New Economics Papers: this item is included in nep-ban and nep-int
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Citations: View citations in EconPapers (10)

Published in Journal of Finance, 1, August, 2023, 78(4), pp. 2049 - 2085. ISSN: 0022-1082

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:119458

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