EconPapers    
Economics at your fingertips  
 

Bank lending in uncertain times

Piergiorgio Alessandri and Margherita Bottero

European Economic Review, 2020, vol. 128, issue C

Abstract: We study the impact of economic uncertainty on credit supply using monthly data on more than two million corporate loan applications received by Italian banks between 2004 and 2012. We find that an increase in aggregate uncertainty has two effects: it lowers the likelihood that firms’ applications will be successful, and it prolongs the time firms have to wait for their loans to be disbursed. This financial acceleration mechanism varies in the cross section, affecting mainly banks with low capital buffers and firms that are geographically distant from the bank to which they apply.

Keywords: uncertainty; credit supply; loan applications (search for similar items in EconPapers)
JEL-codes: E51 G21 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292120301343
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Bank lending in uncertain times (2017) Downloads
Working Paper: Bank lending in uncertain times (2017) Downloads
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:eee:eecrev:v:128:y:2020:i:c:s0014292120301343

DOI: 10.1016/j.euroecorev.2020.103503

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-10-12
Handle: RePEc:eee:eecrev:v:128:y:2020:i:c:s0014292120301343