Non-bank lending during crises

Iñaki Aldasoro, Sebastian Doerr and Haonan Zhou

Review of Finance, 2025, vol. 29, issue 6, 1809-1832

Abstract: For a large sample of countries, this article shows that non-banks curtail their syndicated lending by significantly more than banks during financial crises in borrower countries. Differences in the value of lending relationships explain most of the gap. Relationships with non-banks are less valuable in general and thereby do not improve borrowers’ access to credit during crises. Non-banks are also less likely to form lasting relationships with borrowers. These findings imply that the rise of non-banks could increase the importance of transaction-based lenders and exacerbate the repercussions of financial shocks.

Keywords: non-banks; syndicated loans; financial crises; relationship lending; financial stability (search for similar items in EconPapers)
JEL-codes: F34 G01 G21 G23 (search for similar items in EconPapers)
Date: 2025
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Related works:
Working Paper: Non-bank lending during crises (2024)
Working Paper: Non-bank lending during crises (2023)
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